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Thread: Netflix offers a lackluster explanation

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    Netflix offers a lackluster explanation



    Dear ,

    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.


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  3. #2
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    Good Read!!!!

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    I have the streaming service only, so I hope this means better content. Either way I am interested to see how this pans out. TBH I always thought Netfix was undervaluing themselves with the prices they were charging. We have to give them a lot of credit though, because they are the reason that all those Redbox kiosks are around and charge so little for rentals.

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    I had netflix DVD service before streaming was offered. It was pretty neat, but switched to blockbusters DVD program when they had it since you could exchange in the store. I hated waiting for the movies to come in the mail. The bluray option is pretty enticing though... Didn't have bluray when I had netflix.

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    Frontpage'd... Btw, nice read

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    Senior Member Shift_Lock's Avatar
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    I got that damn email too..lol those guys are trying to save face.. they ticked off a lot of people..

    Did I come off like a jerk?? Read more here


    [/spoiler]

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    Judging by the blog responses, their customers are NOT impressed with his "Oh, My Bad!" email. I don't blame them...

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    I only stream so I wasnt affected by the bs but for a growing company like that you think they would have used some tact.. especially today with how everything is.

    Did I come off like a jerk?? Read more here


    [/spoiler]

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    My son wanted a DVD back in December. We had alot going on with getting ready to move, going on Florida vacation, buying new televisions and computers, and my project of getting the new house remodeled. I never did find the damn DVD and knew it was a bad idea. So we still use the streaming, and it will come in handy with the winter months approaching. But T'hell with getting some disks in the mail. I think we can all agree that this being the reason we back our games up to harddrive, that kids and disks just don't work out very well.

    I realize this isn't the best option for some, but we are to the point now that we can send and receive data very quickly these days, so in my home the disk issue is obsolete. At least as long as I have the baby barbarians lol

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    Quote Originally Posted by oddgriffin View Post
    baby barbarians lol
    LMAO! we call them the devils spawn..lol. especially our 4year old girl... she runs the household.. lol

    Did I come off like a jerk?? Read more here


    [/spoiler]

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