Netflix

[Partial]

Is this company just seeing how fast they can destroy their image? First the price hikes pissing everyone under the sun off, and now the rebranding of DVDs by mail??

Up until a few months ago I thought they were a really well run company with a clear vision, smart execs and billion dollar branding.

[Deputy Nutz]

I always thought that they sent DVDs through the mail? I think that they have destroyed Blockbuster, and in comparison to movies that are "On Demand" they are much cheaper. They are taking advantage of their market.

[SkinBasket]

They just sent out an "apology" via email about how they hiked prices on everything, then suddenly started charging more for streaming to boot. It was a terrible apology that was actually just an emotionally worded excuse about how they need to keep up with the times and they were afraid they couldn't do streaming well - real confidence boosting stuff. I know I'm probably not alone in reducing our service - and thus their revenue - every time they've hiked prices, and they've lost over a million customers over the streaming and blu-ray price hikes. They seem to be angling to eventually cut delivery altogether by re-branding it.

I agree they built a great brand, now trying to transition it seems to be something they can't do well.

[SkinBasket]

Here, I found it in my trash can...

LOL @ Quickster. Real marketing genius there.

Dear SkinBasket,

I messed up. I owe you an explanation.

It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.

For the past five years, my greatest fear at Netflix has been that we wouldn't make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us). So we moved quickly into streaming, but I should have personally given you a full explanation of why we are splitting the services and thereby increasing prices. It wouldn’t have changed the price increase, but it would have been the right thing to do.

So here is what we are doing and why.

Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD. DVD is a great option for those who want the huge and comprehensive selection of movies.

I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We need to focus on rapid improvement as streaming technology and the market evolves, without maintaining compatibility with our DVD by mail service.

So we realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently.

It’s hard to write this after over 10 years of mailing DVDs with pride, but we think it is necessary: In a few weeks, we will rename our DVD by mail service to “Qwikster”. We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.

Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, but now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated.

There are no pricing changes (we’re done with that!). If you subscribe to both services you will have two entries on your credit card statement, one for Qwikster and one for Netflix. The total will be the same as your current charges. We will let you know in a few weeks when the Qwikster.com website is up and ready.

For me the Netflix red envelope has always been a source of joy. The new envelope is still that lovely red, but now it will have a Qwikster logo. I know that logo will grow on me over time, but still, it is hard. I imagine it will be similar for many of you.

I want to acknowledge and thank you for sticking with us, and to apologize again to those members, both current and former, who felt we treated them thoughtlessly.

Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions.

Respectfully yours,

-Reed Hastings, Co-Founder and CEO, Netflix

p.s. I have a slightly longer explanation along with a video posted on our blog, where you can also post comments.

[mraynrand]

Blockbuster is closing all their stores and renaming their DVD mail service 'Quiksand.'

[3irty1]

When you compare Netflix to cable TV, their brand still smells like a rose. Can you imagine Time Warner sending you an email to apologize for raping you? They could have done something waaaayyyyyy worse like sneaking in ads. Then I'd quit.

[Partial]

When you compare Netflix to cable TV, their brand still smells like a rose. Can you imagine Time Warner sending you an email to apologize for raping you? They could have done something waaaayyyyyy worse like sneaking in ads. Then I'd quit.

Brand is everything. Absolutely everything. They're killing it. Their streaming offerings suck. They're only decent when paired with the DVD stuff. The price hike was total bojive. Their streaming option, as it is today, is far too weak to stand on it's own. Hopefully they add some serious content to add value.

[Harlan Huckleby]

What the hell is wrong with raising prices!?

Go somewhere else if you don't think they offer a good deal. Sounds like a bunch of spoiled kids.

[SkinBasket]

What the hell is wrong with raising prices!?

Go somewhere else if you don't think they offer a good deal. Sounds like a bunch of spoiled kids.

Try to follow along. The conversation is about what Netflix is doing to their own brand.

[Harlan Huckleby]

Nobody cares about "branding", the interest in Netflix is anger over the price hikes.

Netflix is phasing-out DVD-by-mail. That's the story. They aren't abandoning the "netflix" brand.

[3irty1]

I love their streaming content. Dvd's by mail are stupid. Even when I had access to it on the rare occasion that I needed a DVD I'd use redbox. I've been using Netflix in conjunction with broadcast TV and the occasional pirated torrent as the only programming in my house for two years. I'll never go back.

[Harlan Huckleby]

I love their streaming content. Dvd's by mail are stupid.

Old technology is always stupid. Its a question of being able to afford or justify the upgrades to better services and toys.

[Freak Out]

I love their streaming content. Dvd's by mail are stupid. Even when I had access to it on the rare occasion that I needed a DVD I'd use redbox. I've been using Netflix in conjunction with broadcast TV and the occasional pirated torrent as the only programming in my house for two years. I'll never go back.

Streaming HD is a bitch.....I want the highest quality picture possible and I can't get that streaming now. I have the Netflix blu-ray service now but may start using redbox when I find one close to home.

[MadtownPacker]

Old technology is always stupid. Its a question of being able to afford or justify the upgrades to better services and toys.

Why you always gotta be in the mix?? If the subject was about gay porn I'm sure you would enlighten us all but it's not so fuck off!

[red]

i like the idea that they'll be adding games, hopefully its only for a few bucks more

i don't like the price hike, but i'm not ready to drop them over it. instead i might just downsize to the steaming thing and 1 dvd at a time. then it will be the same as what i'm paying now

one thing i do hate very much is having to wait for a month to get new releases.

also if they're going to throw all their eggs into the streaming business, then they need to steam newer movies. i love watching streaming, but its all shit thats been out for a long time