I’ve been a Netflix addict since it’s inception, or there about’s. To me, it’s an everyday household item like peanut butter and jelly, or apple pie and ice cream. So when Reed Hastings sent that long winded email about how the Netflix business model is essentially changing, my first thought was, “Why fix it, if it ain’t broke?!”
Now, I’m beginning to understand the thought process behind the change. By separating the online streaming business, which will remain ‘Netflix’, from the mail DVD business, which will be called ‘Qwikster’ (ironic, if you think about it), it will be easier to part with the mail portion in the future, or sell it.
Maybe I’m reading too much into the name changing and separation of services, but it makes sense. Mail delivery is toying with the idea of delivering mail only 5 days a week, Monday through Friday. This will inevitably effect receiving DVD’s in the mail possibly pushing those subscribers to look for other movie alternatives. Blockbuster and Redbox have that covered in some cities.
Netflix is still the best online streaming movie source, in my opinion (I’ve tried Crackle and a few others and they stink). If they can ramp up their agreements with the movie industry, they could continue dominating the online movie streaming business. Their biggest hurdle is obtaining movies sooner than Redbox and Blockbuster as well as the other online streaming services whose streaming is littered with commercials or very low in resolution.
For the Netflix/Qwikster customer, ordering DVD’s from one site and viewing movies on another is cumbersome, but it’s not an impossible feat. Paying a dollar more for their services won’t break the bank and as long as they continue their auto-debit service, it won’t confuse me.
So, for now I’m sticking with Netflix. I guess that means I’ll also be a Qwikster customer.
What’s your plan?