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Netflix bails on Qwikster, will continue to operate DVD service

Oct. 10, 2011by:

RIP Qwikster, we hardly knew ye.

Less than a month after announcing that they'd be spinning off their DVD-by-mail service into a new, separate company named Qwikster, Netflix has announced this morning they'll be abandoning that plan.

A Netflix spokesperson said, "We underestimated the appeal of the single web site and a single service," adding, "We greatly underestimated it." Yes. Yes, you did.

Added CEO Reed Hastings, "There is a difference between moving quickly—which Netflix has done very well for years—and moving too fast, which is what we did in this case."

The actual separation of Netflix into two companies - Netflix for online streaming and Qwikster for DVD-by-mail - never happened despite the promise in the original announcement. The company was still in the wake of customer uproar following a controversial price increase when they announced the Qwikster news. But the news proved even worse for company relations as many customers took to Facebook, Twitter and their blogs to protest and announce the cancellation on their accounts.

While Qwikster will be dying a very swift death, the price increase announced earlier by Netflix will remain in effect. As for adding video game rentals, a promise of the new Qwikster service, Netflix says that "may or may not" still happen.

Netflix had previously announced that it expected about 1 million account cancellations in the wake of their recent decisions but would not comment formally on the actual numbers. Nor would they speak publicly about quarterly losses, which will be announced later this month.

Source: New York Times

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6:45PM on 10/11/2011
Torrents!!
Torrents!!
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6:30PM on 10/11/2011
ha what a dumbass the guy who runs Netflix is, way to screw up your own company. See what happens when ya get greedy?
ha what a dumbass the guy who runs Netflix is, way to screw up your own company. See what happens when ya get greedy?
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3:09AM on 10/11/2011

Even the name "Qwikster"

Even the name Qwikster was ridiculous. It sounded like something Tommy Wiseau would say in "The Room." "Hey Lisa, we're going to get drunk and order some movies from Qwikster."
Even the name Qwikster was ridiculous. It sounded like something Tommy Wiseau would say in "The Room." "Hey Lisa, we're going to get drunk and order some movies from Qwikster."
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+1
8:49PM on 10/10/2011
Haha Netflix. I canceled and signed up with Blockbuster. I can exchange dvds at a local store if i chose. I pay less and I have the option to rent games and blue ray. Soo long Netflix
Haha Netflix. I canceled and signed up with Blockbuster. I can exchange dvds at a local store if i chose. I pay less and I have the option to rent games and blue ray. Soo long Netflix
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7:58PM on 10/10/2011
It'll be a real shame if they decide not to proceed with the video game plan. I was really looking forward to it. Gamefly is a freaking joke, and Redbox is just too damn expensive. A big sarcastic thank you to all of you simplistic crybabies out there that whined over this like you were going to be infected with ball cancer or something. Having to maintain 2 accounts on 2 different websites isn't a big deal in this day and age.
It'll be a real shame if they decide not to proceed with the video game plan. I was really looking forward to it. Gamefly is a freaking joke, and Redbox is just too damn expensive. A big sarcastic thank you to all of you simplistic crybabies out there that whined over this like you were going to be infected with ball cancer or something. Having to maintain 2 accounts on 2 different websites isn't a big deal in this day and age.
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6:32PM on 10/11/2011
what ya can't afford one lousy dollar with redbox?
what ya can't afford one lousy dollar with redbox?
+2
6:47PM on 10/10/2011
That Qwikster curtain really really REALLY looks exactly like a dilating vagina.
That Qwikster curtain really really REALLY looks exactly like a dilating vagina.
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5:39PM on 10/10/2011

Learning A Lesson...

I'm not a Netflix subscriber, I'll point that out in the beginning. However, it would appear that TPTB at Netflix has learned a valuable lesson about jacking up rates and then trying to move forward too fast.

1,000,000 is a lot of customers to lose (and I suspect more will leave as well before it's all said and done).

However came up with all this...should be careful in the future.
I'm not a Netflix subscriber, I'll point that out in the beginning. However, it would appear that TPTB at Netflix has learned a valuable lesson about jacking up rates and then trying to move forward too fast.

1,000,000 is a lot of customers to lose (and I suspect more will leave as well before it's all said and done).

However came up with all this...should be careful in the future.
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5:25PM on 10/10/2011
As stupid as splitting the company would have been, I think the most insulting thing they've done recently was the letter from the CEO announcing Qwikster as an explanation for the price hike. I wasn't happy about the price hike, but I've been with them since 2001. Back then it was $25 for 3 discs at a time, and they only shipped from California and I lived on the East Coast, it would take almost a week and a half to get new movies.
As stupid as splitting the company would have been, I think the most insulting thing they've done recently was the letter from the CEO announcing Qwikster as an explanation for the price hike. I wasn't happy about the price hike, but I've been with them since 2001. Back then it was $25 for 3 discs at a time, and they only shipped from California and I lived on the East Coast, it would take almost a week and a half to get new movies.
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4:18PM on 10/10/2011
Well, on one hand, shows netflix is responsive to customers on the other hand it shows they are capable of mistakes. I really dont think the selection as to streaming is all that great, so even though it is still a good value, I dont plan on becoming a subscriber anytime soon. Obviously, this is the wave of the future, so I hope netflix sticks around and that other companies join in. The system needs to change, because be it greed or a poor business model any resistance to the old way of 5
Well, on one hand, shows netflix is responsive to customers on the other hand it shows they are capable of mistakes. I really dont think the selection as to streaming is all that great, so even though it is still a good value, I dont plan on becoming a subscriber anytime soon. Obviously, this is the wave of the future, so I hope netflix sticks around and that other companies join in. The system needs to change, because be it greed or a poor business model any resistance to the old way of 5 dollar a week dvd rentals should end.
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3:24PM on 10/10/2011
That's good because the whole Qwikster thing was just odd to me.

And really honestly people that are still bitching about the price increase. What did you all expect with inflation? Netflix is still a fucking steal because you pretty as many movies as you can a month. I can remember days going to Blockbuster and dropping $16 or more a trip because either I had late fees or I got 3 or 4 movies every time I went. I don't know why people bitch about the streaming, I don't have problems finding
That's good because the whole Qwikster thing was just odd to me.

And really honestly people that are still bitching about the price increase. What did you all expect with inflation? Netflix is still a fucking steal because you pretty as many movies as you can a month. I can remember days going to Blockbuster and dropping $16 or more a trip because either I had late fees or I got 3 or 4 movies every time I went. I don't know why people bitch about the streaming, I don't have problems finding movies or TV shows to watch. Even with the price increase from Netflix I still come out ahead.
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9:21AM on 10/11/2011
Inflation increases don't bother me. I've been a Netflix subscriber almost from the beginning and was paying quite a bit more from when it first started. Of course in that time inflation went up, their DVD stockpile increased. In short, there was more of a service being offered. My problem here is that inflation was NOT the reason for the increase. They made that very clear in the little video they made. This was an increase because of extra services availble. Those services are not going to
Inflation increases don't bother me. I've been a Netflix subscriber almost from the beginning and was paying quite a bit more from when it first started. Of course in that time inflation went up, their DVD stockpile increased. In short, there was more of a service being offered. My problem here is that inflation was NOT the reason for the increase. They made that very clear in the little video they made. This was an increase because of extra services availble. Those services are not going to happen, but the increase remains. I looked at Blockbuster which offers unlimited in-store exchanges, games, and blu-rays for less than Netflix charges for DVDs alone. It's not complaining, it's just a better value.
2:35PM on 10/10/2011

Well

That's good. Now lower your prices, bitch.
That's good. Now lower your prices, bitch.
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+1
1:04PM on 10/10/2011

Reed Hastings must go

I've never seen this much flip flopping outside of politics ever! Price increases are inevitable but a 60% is still 60%. All of these "small increases" add up.They were making tons of profit before and just got greedy.With their continuous changes it is very evident they don't know what they are doing. Me, I'll stick to $1.00 Redbox while I watch Netflix go down the tubes.
I've never seen this much flip flopping outside of politics ever! Price increases are inevitable but a 60% is still 60%. All of these "small increases" add up.They were making tons of profit before and just got greedy.With their continuous changes it is very evident they don't know what they are doing. Me, I'll stick to $1.00 Redbox while I watch Netflix go down the tubes.
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12:08PM on 10/10/2011

its just business

I know we dont ever want to pay more, but I think people were caught up in too much of a good thing mode with Netflix. They didnt have any competition before, the studios didnt care about streaming, but once netflix started doing XBOX they all took notice and instead of selling them rights to an entire catalog of movies for 10million it quickly became 300million. How are they not to raise prices? I wish people got this mad at cable and phone companies, no one complains like this about Time
I know we dont ever want to pay more, but I think people were caught up in too much of a good thing mode with Netflix. They didnt have any competition before, the studios didnt care about streaming, but once netflix started doing XBOX they all took notice and instead of selling them rights to an entire catalog of movies for 10million it quickly became 300million. How are they not to raise prices? I wish people got this mad at cable and phone companies, no one complains like this about Time Warner or Direct TV, which increase your prices every year for the dumbest reasons and also adds the dreaded "fees". I have no problem with the price increase, but the splitting was stupid.
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10:37AM on 10/10/2011

Damn straight

You're moving in the right direction again, Netflix.
PS Everbody still complaining about the price increase need to get fucking real. Unlimited streaming of tons of movies AND having a DVD out a time (which, if you return them promptly, you can have between 10-15 titles throughout the month) all for under $20? C'mon, people, that's a goddamn deal. Do you all NOT remember the days of living under the tyranny of Blockbuster?!? THE HORROR!!!
You're moving in the right direction again, Netflix.
PS Everbody still complaining about the price increase need to get fucking real. Unlimited streaming of tons of movies AND having a DVD out a time (which, if you return them promptly, you can have between 10-15 titles throughout the month) all for under $20? C'mon, people, that's a goddamn deal. Do you all NOT remember the days of living under the tyranny of Blockbuster?!? THE HORROR!!!
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3:06PM on 10/10/2011
You seem happy with Netflix, but here's my gripes.

1. Netflix's justifcation for the price increase was because a seprate company was going to take over the DVD side. OK, now that that's not happening, lower the rates to the way they were.

2. My turnaround time is nowhere near yours, if I got & watched a DVD Monday, send it back Tuesday, they should get it about Thursday, if they send another movie back Thursday, I should get it by Saturday. That's 2 movies a week at best times 4 weeks a
You seem happy with Netflix, but here's my gripes.

1. Netflix's justifcation for the price increase was because a seprate company was going to take over the DVD side. OK, now that that's not happening, lower the rates to the way they were.

2. My turnaround time is nowhere near yours, if I got & watched a DVD Monday, send it back Tuesday, they should get it about Thursday, if they send another movie back Thursday, I should get it by Saturday. That's 2 movies a week at best times 4 weeks a month, 8 movies a month. I can get that at Redbox for the same price, and not have to wait for the movie to come in the mail, and pray it actually works. SO, were's the "deal" in that?

3. Their streaming blows...There is no justifacation for $8 a month for old movies & shows I can watch for free online...

4. I have to wait 28 days after current releases with Netflix, then god only knows how long after that.

I like to watch movies so most of the streaming material, I've seen long ago, and if I like movies, I buy them, so no need to stream movies from the 80's....

5. When was the last time you've been to Blockbuster, because its not the bad, and their online is not bad either, especially with the in-store exchanges, you could get any new release you want if you save your exchange for Tuesdays...
10:22AM on 10/10/2011
I am a Canadian netflix subscriber. I pay $8.00 per month for streaming and I can't believe how cheap it is. And I mean lets face it, DVD is headed the way of the Dinosaur anyway.
I am a Canadian netflix subscriber. I pay $8.00 per month for streaming and I can't believe how cheap it is. And I mean lets face it, DVD is headed the way of the Dinosaur anyway.
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9:58AM on 10/10/2011
Look, Netflix fucked up a bunch with the price increases, the doing away of individual profiles, etc. but the fact that they listened to us on the Qwikster issue shows they aren't arrogant bastards and have the humility to admit their mistakes. As for price increases; that shit's inevitable what with inflation. You didn't think we'd be buying songs on iTunes for .99 in 2020, did you?
Look, Netflix fucked up a bunch with the price increases, the doing away of individual profiles, etc. but the fact that they listened to us on the Qwikster issue shows they aren't arrogant bastards and have the humility to admit their mistakes. As for price increases; that shit's inevitable what with inflation. You didn't think we'd be buying songs on iTunes for .99 in 2020, did you?
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5:02PM on 10/10/2011
Yeah, if you believe that non since from Netflix, but I don't. Netflix doesn't give a shit about its customers, if you believe that, please try calling customer service a speak to someone...I'll wait...Netflix is a business and every business works for the best interest of themselves. I'm sure NetFlix cancelled because it didn't help their bottom dollar. And in the US inflation goes up 3% a year, not 60%, but good try...
Yeah, if you believe that non since from Netflix, but I don't. Netflix doesn't give a shit about its customers, if you believe that, please try calling customer service a speak to someone...I'll wait...Netflix is a business and every business works for the best interest of themselves. I'm sure NetFlix cancelled because it didn't help their bottom dollar. And in the US inflation goes up 3% a year, not 60%, but good try...
9:42AM on 10/10/2011
Dear Netflix,
You also Underestimated the wrath of pissed-off subscribers.
Dear Netflix,
You also Underestimated the wrath of pissed-off subscribers.
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9:41AM on 10/10/2011
It's good to see that Netflix actually listened to it's customers about this, but it's too little too late for me. I already cancelled and I don't regret doing it, even though it didn't split. The price went up with no extra services and now the promise of video games may not even happen. I now have Blockbuster which includes games and blu-rays in a lower price.
It's good to see that Netflix actually listened to it's customers about this, but it's too little too late for me. I already cancelled and I don't regret doing it, even though it didn't split. The price went up with no extra services and now the promise of video games may not even happen. I now have Blockbuster which includes games and blu-rays in a lower price.
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