Just weeks since causing an uproar over yet another price increase, Netflix co-creator and CEO Reed Hastings revealed the online movie rental outlet's plan to split in two. Now they will have one site dedicated to movies that can be received through the mail and one site dedicated to the online streaming service. The site that offers movies through the mail will be called Qwikster, while the site that offers streamed video will retain the name Netflix.
I was puzzled by the fact that Mr. Hastings actually believed this explanation and justification would somehow improve customer morale. His statement is disguised as some sort of apology (see: the first sentence, which reads"I messed up."), but does nothing to actually convince customers of his sincerity. Now, not only will customers have to pay two separate fees (one for streaming video and one for delivery by mail), they will also have to register on two different sites. As a customer, I must say that one's patience can only stretch so far. These sudden changes reveal what must be a complete disregard for those who have supported the service for so long.
In order to advertise their new site, Netflix may be looking to get Qwikster on Twitter. The problem is, there is already a user on the site using this name. It remains to be seen whether Netflix will reach a buyout deal with the user. Regardless of what they do to advertise the new service, I believe this is yet another move in the wrong direction.
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I completely agree that Netflix has made a huge mistake by splitting the company into two separate entities. I have been a customer of Netflix for about two years now and have always been pleased with the service (other than my faulty Comcast Internet connection...figures).
ReplyDeleteI believe that Netflix should have kept one website and if they felt the need for change, offer deals, subscriptions, and updates that will allow the company to charge more, and keep the consumer happy all at the same time.
People don’t want to pay more for a service, go to two different websites to obtain one service, and change their daily routine. Netflix should have known better.
Someone will probably make a movie out of this situation one day. Maybe that’s what Reed Hastings has been planning all along.