Woke up this morning to an email from Reed Hastings, Co-Founder and CEO of Netflix. The email was an apology for the way they handled the re-pricing system that split streaming from DVD mail service. It was also an announcement that the DVD Home Delivery service was being split off to a separate website; Qwikster.com
To be honest, I was a little disappointed when the services were split, but it was a logical move on their part and I can’t fault them for it. Of course I don’t care much for the home delivery service and seldom use it. However my wife and daughter use it all the time, so either we sign up for both services or I risk a small revolt.
Long term I think this is a valid move for Netflix, although I’m sure the next six months are going to be bumpy with more and more people fleeing the service and moving on to one of the competing sites like Hulu.com. I’m sure that the initial reaction from most people is going to be negative and Netflix (Qwikster?) will lose a lot of subscribers. Over time I think they’ll bounce back and recover, but in the meantime you can bet that Hulu.com and the other streaming sites are poised to swoop in and increase their offerings to woo away as many people as they can.
Will I keep my Netflix account? Probably. Will I sign up for Qwikster? Only if my wife and daughter insist, otherwise I’m not even remotely interested. What do you think?