So I'm Out Looking for Alternatives to Netflix Streaming . . .

[Waitone]

and I come on the news Netflix is spinning off its DVD business to Quickster, the home of Sponge Bob Square Pants.

http://blog.seattlepi.com/techchron/2011/09/19/netflix-ceo-admits-mistake-introduces-dvd-service-qwikster/

So lemme see if I got it right.  Netflix PO's its customer base because it force said customer base to choose between streaming video with inferior content and a substantial DVD selection OR accept a 60%+ price increase.  4% of the customer base leaves immediately and shareholder value drops by 50%.  The CEO will not admit to screwing up but does say he just didn't explain it properly.  So he does a double down on the streaming business (the one with the inferior content selection) and sells off the DVD business to Sponge Bob Square Pants.

This one will show up in case studies in B-schools.

[lupinus]

you basically have it.

I still fail to see what they hope to accomplish with the change. If anything, it takes away the one reason people stayed with them. If you have to deal with two companies, two payments, etc....there's no reason to not shop around.

As to the streaming alternative, I've been seriously considering amazon prime. Sadly, it doesn't have as much content.

[Scout26]

Perhaps they are following the Blockbuster business model....

[Doggy Daddy]

Okay, so I logged on to Netflix today to drop my account to streaming plus 1 DVD at a time because of the price increase.  Today is the billing day for my account.

Now, I log on here and find out about the account splitting into 2 accounts.  Is Hastings bat-*expletive deleted*ing nuts?  I figure I'll give it a month until my next billing day to evaluate whether I want to keep Netflix at all.  They've lost their minds.

DD

[bedlamite]

Anyone know anything about http://www.vudu.com/? Supposedly that will work with Linux where Netflix will not.

[TechMan]

Anyone know anything about http://www.vudu.com/? Supposedly that will work with Linux where Netflix will not.

Vudu is owned by Walmart.  I know one of the owners of my company has it and likes it.

[Brad Johnson]

Unfortunately Vudu isn't available on an XBox account.  You need a PS3 if you want it piped through your gaming console.

Brad

[GigaBuist]

Now, I log on here and find out about the account splitting into 2 accounts.  Is Hastings bat-*expletive deleted*ing nuts?  I figure I'll give it a month until my next billing day to evaluate whether I want to keep Netflix at all.  They've lost their minds.

That's the part I really don't get.  Netflix was your movie company.  If you searched for a movie you could either stream it or wait for the DVD.  If I lose that integration I'm not as likely to remain loyal to them, because if I want the hassle of dealing with two different companies I can go anywhere else to achieve and get that experience.

[seeker_two]

Just get your movies from pawn shops....cheap to buy and they'll buy them back from you later....

[Doggy Daddy]

The CEO will not admit to screwing up but does say he just didn't explain it properly.

And just why are we discussing Obama in a Netflix thread?

DD

[Waitone]

http://money.cnn.com/2011/09/19/technology/netflix_cash/index.htm?iid=Popular
http://money.cnn.com/2011/07/22/technology/apple_hulu/index.htm?iid=EAL

To add another question to Netflix's decision to off load DVD rentals, it seems content providers are wising up that they have a valuable commodity in their content when it comes to streaming video.   Seems a number of players are positioning themselves to make a run at being dominant in the market.  These players all have one thing in common. . . . . they all have a lot more cash on hand than does Netflix.

So lemme see if I got it right.  Netflix jettisons a cash generator to prepare itself for battle with a number of opponents who will compete with cash in acquiring a dominant position in a developing business model.  Looks to me like Netflix jumped too soon and placed itself in a weak position for future battles.

Netflix's gambit will prove to be either a brilliant play or an example of museum grade stupidity.  I'll bet on the latter.