Netflix CEO Reed Hastings has issued an apology for the handling of a recent price hike that had Netflix subscribers in a lather and led to a number of subscriber cancellations and a drop in stock price. And he’s also announced that Netflix will split into two companies: Netflix for streaming and “Qwikster” for DVDs by mail. To read the full story and watch Hastings’ video statement, please click here.
UPDATE 1: In a shocking development, Netflix CEO Reed Hastings announced today that, well, there will be no Qwikster. Netflix will remain one service from which you can rent DVDs and stream movies, with only one charge to your credit card. Surely this kind of flip-flopping isn’t typically seen outside the political realm?
UPDATE 2: A company rep told the New York Times that it is still “to be determined” if Netflix will move forward with a plan to rent out video games, a move that would provide serious competition for the games-by-mail service GameFly.
UPDATE 3: The Hollywood Reporter notes that several Hollywood studios are debating an extension on the 28-day delay that some new movie releases face before arriving Netflix and Redbox. This could mean that Netflix and Redbox users would have to wait up to 60 days after street date in order to rent new movies. All of this is an attempt from the major studios to increase flagging sales on retail DVDs.
The end of an era or the beginning of the end? I can’t decide.
Damn, I don’t know. I’m kinda stuck with the service for now. There’s still no way in hell I’m gonna drop Netflix for a fat ass cable bill or the hassle of a Redbox; and all the other online streaming/pay per download companies are lame.
As for Qwikster… the only thing that comes to mind when I think of that name is chocolate milk.
In that video, the CEOs don’t come across very sincere. If anything, maybe this will help DVD and Blu-ray sales (blu-ray sales are pretty steady as is) and once again the tangible disc will be king.
Does anyone know if Blockbuster’s mail rental service gets newer movies quick?
Yeah, Blockbuster doesn’t have the 28 day delay, in store or by mail.
Hmm. I should keep my “streaming” from Netflix and go with Block’s DVD service.
“All of this is an attempt from the major studios to increase flagging sales on retail DVDs.”
All it will really do is increase DVD pirating. 28 days is already excessive, honestly.
Yeah, that’s what I was thinking.
I agree with you 100%.
Basically the CEO are saying, “You will always get the table scraps poor people, hahahhaah.” Actually poor people don’t use internet right?? I know they use redbox cause I live in Houston and Houston is ghetto as fuck and there is a redbox everywhere and at every corner there is baby mamma and crackheads… Isn’t the streaming/downloading stuff for hipsters?? Don’t worry I’m a hipster myself, lol…
I think you’re right. Streaming is definitely designed for people who can afford broadband internet with a decent speed. However, I don’t know what it’s like around you but here brick and mortar video stores are increasingly hard to find. Redbox is becoming the only option for people who can’t stream movies at a good speed or don’t want to pay Netflix’s increased prices.
Don’t get me wrong, I’ll still use it from time to time, but Red Box is certainly ghetto. They have them all over the place: in front of McDonalds, Gas Stations and even up my ass…
I’m kind of afraid to continue using them. Last thing I want do do is stick a Red Box disc in my Blu-ray player, not knowing there’s bean ‘n cheese dip on the play-side.
lol! I honestly have not seen a Redbox in the wild yet. It could be I don’t know where to look but the few times I have been to Wal-Mart for a cheap DVD, I haven’t seen them. And they aren’t at drug stores yet. Maybe Coinstar has crappy distribution in my state?
I really could care less about having to wait 60 days for a new release (if it’s a movie I want to see that bad, I would have already saw it). Even if it came to that, I’d just buy the damn thing or borrow it from a friend, which has been working for me lately. I’ll be totally honest, if I’m out of options, I’ll use the “internet” to get the job done. I’m more concerned with Netflix keeping their prices down.