Just checked my Netflix registered email and to my amazement I received an email from Netflix stating they are axing their previously announced launch of the Qwikster service. Qwikster was to be the newly spun-off DVD-by-Mail and service from Netflix. The Qwikster service was also said to feature gaming rentals in the very near future as well. We assume that Netflix has received to much consumer backlash due to their recent price changes and loss of content, that these additional company structure changes would have had a major negative result for the company.
In their own words Netflix expresses that “it is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs. This means no change: one website, one account, one password…in other words, no Qwikster.” Although the Qwikster change has been stopped, is this truly the end of such a Netflix separation of services? We do want to also mention that Netflix makes no mention in their email about the status of gaming rentals under the Netflix banner in the future. They do, however, explain that no price changes are coming so that could imply no new services like gaming rentals could be on its way.
All we have to say is that we are excited to see what the Netflix Q3 earnings report due on October 24th will unfold about the company’s financial situation. This is the prime time for competitors like Amazon, Hulu, and Blockbuster to get serious with their content additions and to come up with similar subscription streaming plans. If they do not take their services to the next step while Netflix is being seen in a non-positive light they have yet to be viewed in since its inception than those competitors could lose a potential advantage.
[spoiler]DVDs Will Be Staying At Netflix.com
LOS GATOS, Calif., October 10, 2011 – Netflix Inc. (Nasdaq: NFLX) today said it will not rename its DVD-by-mail service and that its US members will continue to go to the Netflix website for both unlimited streaming and unlimited DVDs.
Netflix said in a Sept. 18 blog post that its DVD by mail service would operate at Qwikster.com. Instead, U.S. members will continue to use one website, one account and one password for their movie and TV watching enjoyment under the Netflix brand.
“Consumers value the simplicity Netflix has always offered and we respect that,” said Netflix co-founder and 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.”
Netflix today informed its U.S. members in personal emails and a post on the Netflix Blog on www.netflix.com[/spoiler]