October 10, 2011 Qwikster gets cold feet
Recently, Netflix execs decided to split their services into two websites, Netflix, which will continue with their limited streaming library, and introduce Qwikster, which would take on the DVD-by-mail side. This announcement had followed a pricing increase for Netflix subscribers from the popular $9.99 to $15.98, which angered many customers.
However, now Netflix is backing out and saying “our bad!” So many people complained about the inconvenience of having to visit two separate sites to watch streaming and to order DVDs, and Netflix listened.
However, I read a blog post by retired Netflix co-founder Marc Randolph praising CEO Reed Hastings for splitting the companies. He claimed that the difficult decision, albeit met with backlash, by Hastings was a risky move, but Randolph felt it would pay off big time in the future. He thought that having two separate entities focusing on just their own respective tasks would help keep the processes more efficient, thus benefiting the company.
I was able to see the logic behind this move, and was in support. However, I was honestly not really affected by the changes anyways. I only have an Instant Streaming account, and even when I was able to order DVDs, I never did. But I agreed that if I were a Netflix customer, I would appreciate them focusing entirely on what they could do for me, instead of worrying on how to integrate both services effectively.
I am interested to see how things turn out. I only wish people had given them more of a chance to branch out.
What do you think?