Netflix: “No Qwikster”

Over the past few months NetFlix have announced that they were raising their prices, splitting their DVD by mail and streaming services, and finally that the service split would actually involved splitting into two companies. Since that time there have been many customers who have decided to drop one or both of the services.

Netflix EmailThis morning we received an email from NetFlix indicating "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."

It seems that NetFlix have heard the sounds of customers leaving and decided to reverse one of the three changes. The price hikes and service split will stay but "…in other words, no Qwikster."

While it is good to see some response from Netflix, it seems to me that they are missing the real reason that is causing people to cancel their subscriptions. I believe that many people used both services because they were bundled together; in essence they were receiving the streaming service for free. When Netflix announced the price hike and service split it caused consumers to reconsider the value of one or both services.

Meaghan and I determined that we don’t use the DVD by mail service sufficiently to justify paying the monthly fee. We really only rent a disc or two per month so RedBox satisfies our optical media rental needs for less money and quicker satisfaction. Curiously though, we have also evaluated whether we get sufficient usage from our streaming subscription as well. There are many other services in this space and with this move Netflix have become self-disrupting. Evaluating our options has caused us to wonder if we really need Netflix at all.

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