Netflix CEO Reed Hastings has two substance for all of you who feel jilted by the society ’s action this year to split its videodisk and streaming telecasting services . First : “ It ’s not you , it ’s me . ” secondly : “ We ’re doubling down . ”
That ’s the essence of the email Hastings transmit to Netflix ’s customers Monday morning — augmented by a likewise worded , but longer , blog post . The executive director offer profuse apologies to customers appal when Netflix part its videodisk and streaming video help , efficaciously raising prices on citizenry who used both . Rather than revoke trend , though , he announced the DVD constituent is being gyrate off as an whole separate service — now namedQwikster , with its own website . Netflix will remain the name of the television streaming serve .
The upper side ? After years of requirement and complaints , the new Qwikster will offer video recording game rental in summation to DVDs . But even with that new table service — and the shirt - deplume flavor of Hastings ’s apology — a identification number of head remain about the future of both Qwikster and Netflix .
In an interview withMacworld , Brett Harriss , an analyst for research - focalize finacial table service companyGamco Investors , said the Qwikster spinoff was expected after Netflix separate the videodisc and cyclosis services this summertime . “ This is just sort of the next step , ” Harris aver .
Hastings ’s excuse - cut - Qwikster announcement total after a devastating weekend for Netflix . The company announce Saturdayit had lost 1 million customersafter splitting its videodisk and streaming services , make additional drag on a bloodline price that had been slidingprecipitously ever since its July announcementof that action — help by thecompany ’s deprivation of Starz contentas part of its streaming video package .
Monday , Hastings attempted to do some damage control even as he pressed onward with the underlying strategy .
“ I see that given the huge changes we have been of late create , I should have personally given a full justification to our members of why we are furcate videodisk and cyclosis , and charging for both , ” he wrote . “ It would n’t have changed the cost increase , but it would have been the right-hand affair to do . ”
The spin - off of Qwikster might be seen as an effort by Netflix to ditch a business that it recognizes as having a limited future . But the new company seems determined to fight that impression by expanding its service — and addressing a longstanding critical review — to include videogame lease for the Wii , PlayStation 3 , and Xbox 360 gambling platforms .
That puts Qwikster into competition with theGameFlyvideo rental service , as well as increased contention withRedbox kiosksthat distribute both game and movie . Qwikster , which presumably takes over Netflix’smuch - lauded forcible dispersion system , would appear to have at least one meaning advantage over GameFly as the two companies vie .
Hastings said the new videogame servicing will be akin to Netflix ’s current Blu - ray service , which cost customers an additional $ 2 a calendar month for access to the high - lineament pic discs . Among the enquiry give unanswered : How much the game armed service will cost , and how many title will be available when Qwikster plunge .
Another potential hitch : Netflix cyclosis is already available through the above - mentioned gaming consoles — which would seem a prime way to reach the gambling consultation and get them check their game queue . But Hastings accent Monday that Qwikster would have an all separate interface from Netflix — raising the possible action that Qwikster is give a key advantage as it launch its game - subscription serve .
Netflix did not immediately respond toMacworldinquiries regarding the currently unanswered question . Hastings promised that other upgrades are coming to both the Qwikster and Netflix service ; a timeline for launching Qwikster has not been made public yet .
Gamco ’s Harriss , meanwhile , say the changes probably wo n’t amount to much . “ It ’s modified , but not that limited , ” he say of the future of physical medium that Qwikster will be offering . “ I reckon we ’ll still be using DVD five age from now . I do n’t conceive the picture games changes [ Qwikster ’s outlook ] . I was surprised the store was up this morning , though it ’s down again . ”
