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Netflix no longer in the DVD-by-mail business?

09.19.2011

Last month, Netflix announced a price hike for their DVD and online streaming services. Customers were not so happy. Yesterday Netflix publicly apologized for the changed, admitted they "messed up" and added one interesting wrinkle: Netflix, as you know it, is changing.

Netflix will no longer be in the DVD-by-mail business. Instead Netflix will be focusing solely on online streaming of digital content. But what about those people (I, among them) who still enjoy renting actual discs? You'll be doing that through a brand new company Netflix is spinning off itself called Qwikster.

Wait....what the fuck?

Yeah, I know. Let's figure this all out. Qwikster will basically be the service Netflix was when it started - DVDs and Blu-ray by mail. The good news is that there will be one nice addition: video games. Qwikster will be offering up all variety of games for Xbox 360, PS3 and Wii.

Netflix simply be the streaming service that you've come to enjoy (?) on your computer, mobile device or TV.

But here's the obvious downside. While they're both owned by the same corporation, they'll be operating as two different companies. Which means two websites, two accounts, two charges to your credit card, etc. Also any ratings and reviews you post to movies will only work on that specific website (if you review a movie on Netflix, it won't show up on Qwikster). Since they've already raised the prices, you won't see any change in price for the services.

As you might expect, customers aren't exactly thrilled. To their credit, Netflix founder and CEO Reed Hastings is replying to comments left under his blog post about the change. If you're unhappy (or happy) with the decision, read his full post and let them know...

Source: Netflix

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10:49AM on 09/27/2011
I'm only okay with Netflix dumping the mail in dvd rental if every movie that they have on dvd will be available for streaming. If not then this is bullshit.
I'm only okay with Netflix dumping the mail in dvd rental if every movie that they have on dvd will be available for streaming. If not then this is bullshit.
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2:01PM on 09/22/2011
There's an article on fox business about how netflix by dumping their dvd business is setting up to sell out to Amazon.

[link]
There's an article on fox business about how netflix by dumping their dvd business is setting up to sell out to Amazon.

[link]
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7:15PM on 09/20/2011

Luv my streaming service

Really don't care much about what they call themselves; but for under 10 bucks I get all the stream that I can handle! for any complainers, just think -- remember the 4 buck price at blockbuster, etc!
Really don't care much about what they call themselves; but for under 10 bucks I get all the stream that I can handle! for any complainers, just think -- remember the 4 buck price at blockbuster, etc!
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3:21PM on 09/20/2011

Roll over question

My main concern is what happens to my Netflix profile with my Queue and all my movie ratings when it changes to Qwikster. That shit took some time, especially since I've had Netflix for a few years. I don't want to lose all that stuff. If I'm starting from scratch what's stopping me from just trying Blockbuster?
My main concern is what happens to my Netflix profile with my Queue and all my movie ratings when it changes to Qwikster. That shit took some time, especially since I've had Netflix for a few years. I don't want to lose all that stuff. If I'm starting from scratch what's stopping me from just trying Blockbuster?
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12:36AM on 09/20/2011
Great, now that Qwikster will include video games in addition to Blu Ray and DVD you can guarantee that price will hike yet again. Watch being that they are boosting streaming, that will probably go up to. Dumb greedy fuckers.
Great, now that Qwikster will include video games in addition to Blu Ray and DVD you can guarantee that price will hike yet again. Watch being that they are boosting streaming, that will probably go up to. Dumb greedy fuckers.
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10:56PM on 09/19/2011
I'll just do what I've been doing and using Netflix for streaming and going to Blockbuster for DVDs
I'll just do what I've been doing and using Netflix for streaming and going to Blockbuster for DVDs
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9:41PM on 09/19/2011
They're actually making things worse. Now I believe Red Box will win any day now.
They're actually making things worse. Now I believe Red Box will win any day now.
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8:49PM on 09/19/2011
I have netflix streaming only .. and mainly use it for the tv shows. They have quite an extensive collection of tv and anime. I'm currently enjoying STNG and Breaking Bad. I more than get my 7.99 a months worth out of it. The cost I've saved over not having to buy season upon seasons of dvds is well worth it.

As for why they are making two seperate entities I have no idea but the games rental is enticing. I'll wait and see what they charge.
I have netflix streaming only .. and mainly use it for the tv shows. They have quite an extensive collection of tv and anime. I'm currently enjoying STNG and Breaking Bad. I more than get my 7.99 a months worth out of it. The cost I've saved over not having to buy season upon seasons of dvds is well worth it.

As for why they are making two seperate entities I have no idea but the games rental is enticing. I'll wait and see what they charge.
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8:41PM on 09/19/2011

Seems like a waste of time.

Why not just add video games to the Current Netflix by mail portion, why make an entirely separate company to do what they're already doing?
Why not just add video games to the Current Netflix by mail portion, why make an entirely separate company to do what they're already doing?
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7:49PM on 09/19/2011

Netflix Blew It...

Was talking at work about this today two thoughts:

1) Whether its turning into two different companies or switching into two services, why on Earth did they start charging for the streaming service in such a public way WITH NOT NEARLY ENOUGH STREAMING CONTENT?!?

2) Its weird to watch them shit the bed while "Red Box" and similar services take advantage of their short comings (No new releases) in almost the exact same way that Blockbuster shit the bed while Neflix came up off their
Was talking at work about this today two thoughts:

1) Whether its turning into two different companies or switching into two services, why on Earth did they start charging for the streaming service in such a public way WITH NOT NEARLY ENOUGH STREAMING CONTENT?!?

2) Its weird to watch them shit the bed while "Red Box" and similar services take advantage of their short comings (No new releases) in almost the exact same way that Blockbuster shit the bed while Neflix came up off their shortcomings (Late fees)...
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7:12PM on 09/19/2011
This could be a good thing. Mostly it will give them definitive numbers on their DVD and streaming customers. Although they should have left the DVD's "Netflix" and named the streaming something different ("Streamflix" anyone?).
This could be a good thing. Mostly it will give them definitive numbers on their DVD and streaming customers. Although they should have left the DVD's "Netflix" and named the streaming something different ("Streamflix" anyone?).
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7:11PM on 09/19/2011

HA!

Hope this is the first step to their eventual bankruptcy, the greedy bastards!
Hope this is the first step to their eventual bankruptcy, the greedy bastards!
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6:41PM on 09/19/2011

for real

I DON'T KNOW WHAT WE'RE YELLING ABOUT!
I DON'T KNOW WHAT WE'RE YELLING ABOUT!
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6:35PM on 09/19/2011
I honestly don't mind this decision mainly because this just means Netflix will probably be adding newer films to streaming instead of the pile of garbage they have now.
I honestly don't mind this decision mainly because this just means Netflix will probably be adding newer films to streaming instead of the pile of garbage they have now.
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6:05PM on 09/19/2011

fucking morons.

I hope all the big shots and CEOS lose there damn job. Now I am going to have to paid some crazy price for streaming and some crazy price for DVD's by mail. If I have to choose I'll prob just drop the streaming and go with the other but now here's my question... Will we be charged for the videogames, or will it be all under one bill. videogames, movies etc??? Still I wasn't to upset about the price hike but now this just send me off the deep end.
I hope all the big shots and CEOS lose there damn job. Now I am going to have to paid some crazy price for streaming and some crazy price for DVD's by mail. If I have to choose I'll prob just drop the streaming and go with the other but now here's my question... Will we be charged for the videogames, or will it be all under one bill. videogames, movies etc??? Still I wasn't to upset about the price hike but now this just send me off the deep end.
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6:13PM on 09/19/2011
I'm sure there gonna add a charge if you want to receive video games the same way they charge you more if you want blu-rays..
I'm sure there gonna add a charge if you want to receive video games the same way they charge you more if you want blu-rays..
6:01PM on 09/19/2011
im not a fan of the streaming service they have very few if any new movie's.. I'm one of those who still like to receive disks and theres more of us out there than you think this is just another bad move by this company netflix is a name everyone recognizes with movie renting no one is gonna what the hell this qwizterflix thing is .. right now only the people that have netflix already know about this not everybody goes surfing the web through movie websites for netflix news. there gonna confuse
im not a fan of the streaming service they have very few if any new movie's.. I'm one of those who still like to receive disks and theres more of us out there than you think this is just another bad move by this company netflix is a name everyone recognizes with movie renting no one is gonna what the hell this qwizterflix thing is .. right now only the people that have netflix already know about this not everybody goes surfing the web through movie websites for netflix news. there gonna confuse new customers that will stick to red box or go to blockbuster I'm a current customer of theirs and i think this might be the end for me I'm not a fan of searching through 2 different websites for a movie to watch . bad business
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5:58PM on 09/19/2011
ya still wanna rent DVDs, thats what redbox is for & its more convienient, or why not just shell out money & buy the actual movie, netflix is now just about making money & catering to those who can afford the streaming services. I mean 2 sperate accounts & charges, its riduculous.
ya still wanna rent DVDs, thats what redbox is for & its more convienient, or why not just shell out money & buy the actual movie, netflix is now just about making money & catering to those who can afford the streaming services. I mean 2 sperate accounts & charges, its riduculous.
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2:55PM on 09/19/2011
First off, Netflix didn't apologize for the changes. They apologized for the way they went about doing it, i.e. not giving a more comprehensive explaination. The beginning paragraph of your article is inaccurate and misleading.

Second, I don't know why everyone is hating on Netflix. They're freaking awesome, and have given many of us years of solid entertainment at a fair price. I understand why they increased their membership fees, and I haven't had a problem with it. Their costs went up,
First off, Netflix didn't apologize for the changes. They apologized for the way they went about doing it, i.e. not giving a more comprehensive explaination. The beginning paragraph of your article is inaccurate and misleading.

Second, I don't know why everyone is hating on Netflix. They're freaking awesome, and have given many of us years of solid entertainment at a fair price. I understand why they increased their membership fees, and I haven't had a problem with it. Their costs went up, and then so did ours. It's just the way it is, and honestly, if someone can't afford to pay an extra $8 a month, then they need to re-evaluate their life choices, and then understand that entertainment like Netflix is a luxury, not a necessity. Also, it's 2011. Creating and managing a new internet account should be like tying a shoe for anyone that's old enough to use a credit card. Can't believe some of the shit people will whine over. Are we really becoming THAT entitled?

Lastly, thank goodness they are finally going to rent out video games. Good for them. I hope it helps boost profits a bit, keeping them viable for years to come. Just yesterday, I honestly thought about cancelling my Gamefly. I've been a member for 3 months now, and haven't received one new release. I guess the longer you have an upcoming game in your queue, the more likely you are to receive it upon release. Now that's fine -- it is what it is -- but I'll damned if I'm going to wait another 6 months just so I can get at the top of the mailing lists concerning new games. I'm creating a Qwikster account day-one, and adding a ton of games immediately thereafter.
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3:52PM on 09/19/2011
It's not that I feel entitled to it, it's that Netflix already has a system that coordinates both disc service and streaming together. It's very functional. I know what's available through either option and can choose accordingly. It's easy to see when something is only available for streaming but not disc service or vice versa. Yes, it's ease of use on my end, but it should also be easier from their perspective as it's one system as opposed to two completely separate ones to serve and
It's not that I feel entitled to it, it's that Netflix already has a system that coordinates both disc service and streaming together. It's very functional. I know what's available through either option and can choose accordingly. It's easy to see when something is only available for streaming but not disc service or vice versa. Yes, it's ease of use on my end, but it should also be easier from their perspective as it's one system as opposed to two completely separate ones to serve and maintain. My thought is why mess with something that is functioning incredibly well right now that has both services combined? If you want to call that entitled, then I guess go right ahead.
4:10PM on 09/19/2011
In addition to Maverick's points, I use the Netflix recommendation system, which relies on your ratings. I will have to rate the hundreds of movies I've already rated on this new Quickster site, which will be a massive pain in the ass.
In addition to Maverick's points, I use the Netflix recommendation system, which relies on your ratings. I will have to rate the hundreds of movies I've already rated on this new Quickster site, which will be a massive pain in the ass.
4:46PM on 09/19/2011
I appreciate both of your respectful and mature disagreements, but I still stand by my initial reaction and thoughts. I think all the hate Netflix is getting is wrong, and I think everyone whining about the recent changes need to wake up. Netflix is a business, and they are just doing what they have to do, and I believe that they are more respectful and cooperative to their customers than most.

All this makes me think of people that willingly go to a crowded amusement park, then bitch
I appreciate both of your respectful and mature disagreements, but I still stand by my initial reaction and thoughts. I think all the hate Netflix is getting is wrong, and I think everyone whining about the recent changes need to wake up. Netflix is a business, and they are just doing what they have to do, and I believe that they are more respectful and cooperative to their customers than most.

All this makes me think of people that willingly go to a crowded amusement park, then bitch afterwards because they had to wait in lines all day to experience the fantastic rides.
6:09PM on 09/19/2011
Well I understand what your saying. I wasn't upset over the price hike. I could careless about that. But to paid for two different things now is just stupid. Unless it will be the same price where paying now just split between the streaming and the DVD's. What I want to know is will we have to paid extra for the videogames or will it be included in the price points of the movies. If so then that won't be to bad. IDK I'm prob going to wind up doing both. Just netflix is going to have to up their
Well I understand what your saying. I wasn't upset over the price hike. I could careless about that. But to paid for two different things now is just stupid. Unless it will be the same price where paying now just split between the streaming and the DVD's. What I want to know is will we have to paid extra for the videogames or will it be included in the price points of the movies. If so then that won't be to bad. IDK I'm prob going to wind up doing both. Just netflix is going to have to up their game and get way better TV shows and movies on there streaming. They have nothing good at all.
6:15PM on 09/19/2011
well the streaming library is very limited anyways & getting rid of the mailing system will only mean less movies to watch with the service.
well the streaming library is very limited anyways & getting rid of the mailing system will only mean less movies to watch with the service.
9:18PM on 09/19/2011
I think separating the DVD and streaming services will give them more accurate numbers to report to distributors. With the new numbers netflix can forecast streaming vs. mailing patterns so the distributors can decide which library they want to drop their movies in. If the streaming usage spikes we could see more movies and TV shows available to us. Not to mention when the DVD mailing inevitably goes the way of the DODO, they can pull the plug a lot easier on the second company. This seem to be
I think separating the DVD and streaming services will give them more accurate numbers to report to distributors. With the new numbers netflix can forecast streaming vs. mailing patterns so the distributors can decide which library they want to drop their movies in. If the streaming usage spikes we could see more movies and TV shows available to us. Not to mention when the DVD mailing inevitably goes the way of the DODO, they can pull the plug a lot easier on the second company. This seem to be the first time they have really placed their business plan 5-10 years in the future.
2:22PM on 09/19/2011
Well, thank God I'm on Blockbuster Total Access now.
Well, thank God I'm on Blockbuster Total Access now.
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1:28PM on 09/19/2011
I love Netflix. I think it's a great bargain for the cost (even with the price raise), but splitting the services into two completely separate entities: do not like AT ALL. Why can't they continue as they are? It seems very functional right now having both together with a single charge. Why mess that up?
I love Netflix. I think it's a great bargain for the cost (even with the price raise), but splitting the services into two completely separate entities: do not like AT ALL. Why can't they continue as they are? It seems very functional right now having both together with a single charge. Why mess that up?
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1:22PM on 09/19/2011
I never cared much for the streaming side of netflix and the fact that they are splitting it up annoyed me. There were a few films I enjoyed, but for the most part, netflix tends to put all the old, b-grade stuff no one wants to see on there or movies I have seen a million times already. Now, if they had some kind of VOD service on there, that would be a different story. But for now, I will stick with my dvd's thank you. Possibly, if this new video game service is good, I'll go for that too.
I never cared much for the streaming side of netflix and the fact that they are splitting it up annoyed me. There were a few films I enjoyed, but for the most part, netflix tends to put all the old, b-grade stuff no one wants to see on there or movies I have seen a million times already. Now, if they had some kind of VOD service on there, that would be a different story. But for now, I will stick with my dvd's thank you. Possibly, if this new video game service is good, I'll go for that too.
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12:45PM on 09/19/2011
This is the best news ever.

Now if you'll excuse me, I'm late for sucking my own dick.
This is the best news ever.

Now if you'll excuse me, I'm late for sucking my own dick.
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12:11PM on 09/19/2011
I really like netflix. It's commercial free, unlike almost any other form of entertainment anywhere. An extra $7 a month is worth it if it means I'm not going to be bombarded with stupid ads. And the qwickster video game thing is intriguing as I have come to despise Gamefly and hope they inspire some competitive pricing. Besides time+money saved vs. going to a video store is way worth it.
I really like netflix. It's commercial free, unlike almost any other form of entertainment anywhere. An extra $7 a month is worth it if it means I'm not going to be bombarded with stupid ads. And the qwickster video game thing is intriguing as I have come to despise Gamefly and hope they inspire some competitive pricing. Besides time+money saved vs. going to a video store is way worth it.
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+12
12:04PM on 09/19/2011
I see redbox's stock goin' up!
I see redbox's stock goin' up!
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11:09AM on 09/19/2011
Netflix has a product that if controlled properly will be a long-term cash machine, but they contantly screw it up with these "changes".
Netflix has a product that if controlled properly will be a long-term cash machine, but they contantly screw it up with these "changes".
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10:49AM on 09/19/2011
Their Instant Streaming has been on the decline for some time now. Starz ended their contract, other companies also said nope to it (resulting in many of it's newer movies being removed from the service). I am a person who upon the new pricing canceled my Streaming subscription (I want new releases) (Plus many times the service was simply down and wouldn't work, if I was solely paying for streaming, and the service didn't work for even an hour when I wanted it to, I would be livid).

This is
Their Instant Streaming has been on the decline for some time now. Starz ended their contract, other companies also said nope to it (resulting in many of it's newer movies being removed from the service). I am a person who upon the new pricing canceled my Streaming subscription (I want new releases) (Plus many times the service was simply down and wouldn't work, if I was solely paying for streaming, and the service didn't work for even an hour when I wanted it to, I would be livid).

This is a stupid change, because the name NETFLIX has brand recognition as the premiere online movie renting service, and now I can see Netflix going belly up and Qwikster (Terrible name) surviving. Also, am I going to be hit up with a new charge if I want to rent a video game on their site? Or will they actually do something good for their customers and just add Video Games at no extra cost?
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10:28AM on 09/19/2011
Streaming, downloading is the future. No doubt about it. They know that, however they may be jumping the gun a bit.
Streaming, downloading is the future. No doubt about it. They know that, however they may be jumping the gun a bit.
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10:21AM on 09/19/2011
ugh. it's like finding a show that you like and then the next season they've changed the plot and the actors on ya and it's not even the same show. i'm glad i went with streaming.
ugh. it's like finding a show that you like and then the next season they've changed the plot and the actors on ya and it's not even the same show. i'm glad i went with streaming.
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10:20AM on 09/19/2011

Hmmmm

I'm not a fan of streaming. I think it looks like crap (granted, I'm not hard wired to the internet, but still). So I don't care about streaming. I said goodbye to it during the price hike, because I was fine just getting my blu rays. I thought about going to Blockbuster because of the gaming including, but decided to stay with netflix because it was basically the same price and I've always been hugely against Blockbuster ever since I realized their movies were edited (My friend rented dead
I'm not a fan of streaming. I think it looks like crap (granted, I'm not hard wired to the internet, but still). So I don't care about streaming. I said goodbye to it during the price hike, because I was fine just getting my blu rays. I thought about going to Blockbuster because of the gaming including, but decided to stay with netflix because it was basically the same price and I've always been hugely against Blockbuster ever since I realized their movies were edited (My friend rented dead alive 10 years ago and so much stuff was cut out of it from my dvd version). So I'm happy that they're adding games (depending on how much more it will cost me) but I don't get the split. Maybe it will make sense down the line depending on how Qwikster grows, but I don't get why you'd want to just confuse the issue more. Just have it be two separate sections of the Netflix site. Seems like it would be easier on all levels. If they screw up my queue in the transition, I'll be super pissed. No way I can remember the 300+ movies I have in it. The transition better be seamless. As far as the decision....we'll see. Right now it doesn't seem to make much sense.
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9:59AM on 09/19/2011
The writing has been on the walls for a long time.

Drastic price jump to get people to cancel one or more service
Added effort to get more properties on instant
Enforcing streaming on 2 devices simultaneously to ensure more people get streaming accounts

This makes sense - get more money through multiple accounts. Still lame though.
The writing has been on the walls for a long time.

Drastic price jump to get people to cancel one or more service
Added effort to get more properties on instant
Enforcing streaming on 2 devices simultaneously to ensure more people get streaming accounts

This makes sense - get more money through multiple accounts. Still lame though.
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9:03AM on 09/19/2011

...Why?

Obviously there has to be some way they're benefiting, but I'm not seeing it.
Obviously there has to be some way they're benefiting, but I'm not seeing it.
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9:59AM on 09/19/2011
Phase 1: Piss everyone off.
Phase 2: ...
Phase 3: Profit!
Phase 1: Piss everyone off.
Phase 2: ...
Phase 3: Profit!
8:55AM on 09/19/2011
It's sad and astounding that Netflix messed with their business model at all and even in the face of so much criticism, loss of business, etc. they can't just say "oops, we fucked up. lets just keeps things as they were" because splitting the streaming/mail services into two companies will just make things worse for them. Fuck you for changing, Netflix.
It's sad and astounding that Netflix messed with their business model at all and even in the face of so much criticism, loss of business, etc. they can't just say "oops, we fucked up. lets just keeps things as they were" because splitting the streaming/mail services into two companies will just make things worse for them. Fuck you for changing, Netflix.
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