Netflix has made a proactive, if not risky move. I was bummed out when Netflix announced they were splitting up their online and physical movie distribution network, while significantly increasing rates. It’s a risky but necessary move. One that I believe will pay off for the company in the long run, even if it does get off to a very rocky start.
Are Netflix’s best days behind it?
- Netflix adds Qwikster
September 19, 2011
NEW YORK (AP) — Netflix is trying to boost business by chopping its services into two separate parts. Unfortunately for investors, the company’s stock price is what’s really been cleaved.The company that once seemed like it could do no wrong has seen its stock lose half its value in the last two months. Netflix tumbled another 7.4 percent to $143.75 on Monday, on the same day that chief executive Reed Hastings sent an email to Netflix customers, announcing that the DVD-by-mail business that defined the company for much of its history will become a separate, renamed service called Qwikster. Customers who subscribe to both streaming and DVDs will soon see two separate charges on their credit card statements and have to log on to two different websites. [Read more...]
I’ll admit, I was a bit miffed when I learned our rate was being increased around 17%. We own and operate a technology business, and my Yoda learned long ago that a subscription to Netflix was much cheaper than physically replacing the thousands of VHS tapes we own. Sure, we could take the time to convert our video collection from VHS to digital format — we even bought the equipment to streamline the process.
Of course we already have all of our favorite movies on DVD. Heck once upon a time, we had 6 copies of Braveheart (2 on VHS, 4 on DVD). We had so many movies, we finally had to list them all in a database because I kept buying the same movies over and over again. Netflix was affordable and we were pushed to watch a more random selection of video.
I was thrilled with Netflix because we could finally use the bookshelves for something other than movies. We packed them all up and have them in storage, just in case of a “movie emergency.” I would love to get them out of the house but I wouldn’t want to get into any trouble with the entertainment industry. I’ve read where they can be very vicious.
My gut reaction was to cancel our account or cut back, but to be honest, we are getting our money’s worth. I have been a little disappointed with the selection available but I’m trying to be patient. When are you going to release the rest of the Law & Order series? To be frank, I am sick to death of watching reruns. I am beginning to believe I’ll never get to see another episode of Judging Amy. I’ve been waiting to purchase the DVD for years now. What is the problem?
This split might ruffle a few feathers in the short term, but I believe the changes will make Netflix a much stronger competitor in both in-home DVD services and the online video streaming market. If it improves their movie selection and availability I’m all for it.
Meanwhile, I’ll be investigating the new services being offered by Netflix competitors. I intend to get the most bang for my buck.
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