Qwikster Deleted From the Queue: Netflix Cancels Spinoff

[MrsJrotax101]

Qwikster Deleted From the Queue: Netflix Cancels Spinoff

Sometimes, no matter how good it looks on paper, a recommendation for movies generated by a formula just doesn’t work. Even if you’ve liked everything else the director and studio have done, it’s ultimately in the execution. And with plenty of options just a click away, there’s no reason to keep watching a bad movie.
Reed Hastings’ Netflix/Qwikster Spinoff was pretty bad as movies go, even if you like high-concept stuff. On Monday, Hastings pulled the plug on the Qwikster move, announcing at the Netflix blog that “DVDs will be staying at netflix.com.”

“It is clear that for many of our members two websites would make things more difficult,” Hastings writes. “This means no change: one website, one account, one password… in other words, no Qwikster.”

Hastings also makes a brief allusion to the separate subscription plans that led to Netflix’s original customer revolt this summer: “While the July price change was necessary, we are now done with price changes.”
And you know that when Reed Hastings says something, he will never ever change his mind and do the opposite, no matter how much circumstances change.

Still, this is an acknowledgment that whatever advantage a separate Qwikster DVD-by-mail company may have offered Netflix’s quarterly earnings numbers, licensing agreements, navigation of U.S. video privacy laws, or any other explanations anyone could muster for what always seemed on its face like an ill-considered, needlessly complex move that only a disruption-for-its-own-sake-loving contrarian who didn’t actually use both DVDs and streaming on Netflix could love …

Sorry; I got so carried away there that I forgot I actually have to write coherent sentences that real people can read. (Can I have a mulligan, guys? Thanks.)

The popcorn is popped.

It’s an acknowledgment that none of that stuff matters if customers aren’t on your side. You can nudge customers along while they still love using your product and are pretty well locked-in. They’ll complain about changes at the margin, and a few of them will be noisy, but the vast majority will get over it. Just look at Facebook, or Mac OS X.

You can’t reach into their pockets and charge them more for less content and apologize only for bad messaging.

Then, you can’t introduce “innovations” like a separate site that make their lives most absolutely more difficult, with a name that sounds like the punchline to a ten-year-old joke.

You also can’t do either of these things when you’re finally facing real competitors, or without offering real explanations. People will leave: subscribers, shareholders, longtime partners.

Just look at Windows Vista — which in comparison to Netflix/Qwikster, now seems like an unhappy-but-underrated middle act from a company that could more easily afford one.

Reed Hastings and Netflix now need their equivalent of a Windows 7 moment — plus Windows Phone 7, Xbox Kinect and Windows 8 moments, if they have those handy — for this series to rebound from the bad scripting this season and still have a happy ending.

You recently watched Reed Hastings: Netflix/Qwikster Spinoff. To help us ensure a great experience for all members and shareholders, would you take a moment to tell us about this episode’s idea and message quality?​

• The quality was very good
• The quality was acceptable
• The quality was unacceptable

Thanks for your help!

–Your friends at Netflix​

Article from: http://www.wired.com/epicenter/2011/10/qwikster-deletes-netflix/

 

[MrsJrotax101]

CORRECT: Netflix Cancels Plans To Split DVD, Streaming Sites

("2nd UPDATE: Netflix Cancels Plans To Split DVD, Streaming Sites," at 11:38 a.m. EDT, misstated the owner of Starz in the ninth paragraph. The correct version follows
--Netflix dropping plan to split movie-streaming and DVD businesses into separate websites
--CEO says pricing will remain the same
--Netflix faced outcry from subscribers and investors following plans to separate sites
(Updates throughout with additional details and analyst comments.)
By Shara Tibken Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Netflix Inc. (NFLX) on Monday reversed course on separating its movie-streaming and DVD-by-mail businesses into two different websites, easing customer outrage but raising more questions about Chief Executive Reed Hastings' recent moves.

Hastings in a statement on Netflix's blog acknowledged that the planned split would make "things more difficult" for many of its members. Users had expressed anger about plans for the new site, which had been dubbed Qwikster. And customers also have been upset about recent price increases, which Hastings on Monday defended as necessary.

"Consumers value the simplicity Netflix has always offered, and we respect that," Hastings said in a press release. "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."

The news sent Netflix shares up 7.2% to $125.54 in recent trading. Even with Monday's climb, though, shares have lost 59% of their value since their all-time high in July.

While investors and customers expressed some relief Monday, concerns still remain about Netflix's recent actions and future. Hastings has long been viewed as a sharp leader ahead of the consumer curve, but recent missteps have dented his reputation.

Adam Hanft, chief executive of consumer marketing and branding firm Hanft Projects, said it is difficult to understand Hastings' thought process in planning to separate its businesses.
"He's usually a much better chess player than this," Hanft said. "It's a total blunder, and he misread consumer intentions and interest completely. ... It's clearly a company that's lost its way, which is unusual for a CEO with a pretty firm grip on things."

He added the recent actions show the video market is "moving faster than Netflix's ability to keep up."

Netflix was a pioneer in the DVD-by-mail and streaming video category, but competition has heightened in recent months and the company also is facing rising costs for streaming content from Hollywood studios. Discussions with Starz, which is owned by Liberty Media Corp. (LSTZA, LSTZB), recently collapsed over pricing issues, and video streaming providers are vying to have as much exclusive content as possible.

Netflix has been taking actions to combat the changing environment, including raising prices in July and deciding to separate its DVD rental service from its online streaming unit. Last month, Netflix said it was renaming the mail DVD service Qwikster, forcing customers to manage separate movie queues and set up different payment schemes.

Many of its moves have caused an uproar with customers and led Netflix to slash its third-quarter forecast for U.S. subscribers. Analysts say the actions Monday, while a step in the right direction, may not be enough to win over upset consumers.

"It shows they're acting out of desperation...and that Netflix doesn't even understand its own customers," Janney Capital Markets analyst Tony Wible said. "They're going to do whatever it takes to break that momentum, but the moves don't solve the long-term issues plaguing the company."

Losing customers hurts not only the company's financials but also Netflix's ability to negotiate streaming contracts with content providers. If media companies perceive that Netflix is losing its relationship with customers, then they may not be as willing to grant streaming rights to the website.

Other companies--such as Apple Inc. (AAPL), Amazon.com Inc. (AMZN) and Wal-Mart Stores Inc. (WMT)--have been pushing into the sector, and analysts say a lot of content will soon become widely available. Companies are seeking to set themselves apart from rivals through the content they stream on their sites.

Customers expressed their displeasure on Netflix's blog, with many attacking Hastings' recent actions and calling for him to step down.

"Oh, Reed. I appreciate that you're keeping a single site, but someone there needs to figure out a long-term strategy that doesn't involve constant backtracking," said Lex Friedman, who identified himself as a staff writer at Macworld, a website and computer magazine dedicated to Apple Inc. products.

Netflix in July reported that its second-quarter earnings rose 57%, but the online video-rental company reported its costs to win customers rose from the prior quarter and its rate of lost subscriptions increased in the U.S.

"Over the past several years, [Netflix's] management has executed incredibly well and operated so far above the curve that people have been in awe," Lazard Capital analyst Barton Crockett said. "Then they do something like Qwikster and people realize they're human too. ... The rapid fire waffling about the name change probably dinged their momentum near term, as did the decision to raise rates 60%."

Article from: http://online.wsj.com/article/BT-CO-20111010-708873.html

 

[webby]

they caught wind of ken in the development stages

 

[KennyGS]

 

[webby]

it's working... they can't see you now!