Netflix CEO Reed Hastings' explanation on changes to the service
42 replies, posted
[url]http://blog.netflix.com/[/url]
[quote]I messed up. I owe everyone an explanation.
It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming, and the price changes. That was certainly not our intent, and I offer my sincere apology. I’ll try to explain how this happened.
For the past five years, my greatest fear at Netflix has been that we wouldn't make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us) because they are afraid to hurt their initial business. Eventually these companies realize their error of not focusing enough on the new thing, and then the company fights desperately and hopelessly to recover. Companies rarely die from moving too fast, and they frequently die from moving too slowly.
When Netflix is evolving rapidly, however, I need to be extra-communicative. This is the key thing I got wrong.
In hindsight, I slid into arrogance based upon past success. We have done very well for a long time by steadily improving our service, without doing much CEO communication. Inside Netflix I say, “Actions speak louder than words,” and we should just keep improving our service.
But now I see that given the huge changes we have been recently making, I should have personally given a full justification to our members of why we are separating DVD and streaming, and charging for both. It wouldn’t have changed the price increase, but it would have been the right thing to do.
So here is what we are doing and why:
Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD, plus lots of TV series. We want to advertise the breadth of our incredible DVD offering so that as many people as possible know it still exists, and it is a great option for those who want the huge and comprehensive selection on DVD. DVD by mail may not last forever, but we want it to last as long as possible.
I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We feel we need to focus on rapid improvement as streaming technology and the market evolve, without having to maintain compatibility with our DVD by mail service.
So we realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently. It’s hard for me to write this after over 10 years of mailing DVDs with pride, but we think it is necessary and best: In a few weeks, we will rename our DVD by mail service to “Qwikster”.
We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.
Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, and now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. Another advantage of separate websites is simplicity for our members. Each website will be focused on just one thing (DVDs or streaming) and will be even easier to use. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated. So if you subscribe to both services, and if you need to change your credit card or email address, you would need to do it in two places. Similarly, if you rate or review a movie on Qwikster, it doesn’t show up on Netflix, and vice-versa.
There are no pricing changes (we’re done with that!). Members who subscribe to both services will have two entries on their credit card statements, one for Qwikster and one for Netflix. The total will be the same as the current charges.
Andy Rendich, who has been working on our DVD service for 12 years, and leading it for the last 4 years, will be the CEO of Qwikster. Andy and I made a [URL="http://www.youtube.com/watch?v=c8Tn8n5CIPk"]short welcome video[/URL]. (You’ll probably say we should avoid going into movie making after watching it.) We will let you know in a few weeks when the Qwikster.com website is up and ready. It is merely a renamed version of the Netflix DVD website, but with the addition of video games. You won’t have to do anything special if you subscribe to our DVD by mail service.
For me the Netflix red envelope has always been a source of joy. The new envelope is still that distinctive red, but now it will have a Qwikster logo. I know that logo will grow on me over time, but still, it is hard. I imagine it will be the same for many of you. We’ll also return to marketing our DVD by mail service, with its amazing selection, now with the Qwikster brand.
Some members will likely feel that we shouldn’t split the businesses, and that we shouldn’t rename our DVD by mail service. Our view is with this split of the businesses, we will be better at streaming, and we will be better at DVD by mail. It is possible we are moving too fast – it is hard to say. But going forward, Qwikster will continue to run the best DVD by mail service ever, throughout the United States. Netflix will offer the best streaming service for TV shows and movies, hopefully on a global basis. The additional streaming content we have coming in the next few months is substantial, and we are always working to improve our service further.
I want to acknowledge and thank our many members that stuck with us, and to apologize again to those members, both current and former, who felt we treated them thoughtlessly.
Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions.
Respectfully yours,
-Reed Hastings, Co-Founder and CEO, Netflix[/quote]
So there's a new service called Quickster now? Sounds pretty dumb to me, at least Netflix has brand recognition.
this is the dumbest idea i've ever heard in my life.
I am okay with this.
[editline]19th September 2011[/editline]
won't affect me anyway though, I'm canadian
Might be cool if they can actually improve both services. I've never used Netflix before.
Videogame rental doesn't really appeal to me but if that's something I ever wanted, it would be the only service where you could rent movies and games under one fee
[editline]19th September 2011[/editline]
Like that might even kill Gamefly
This is kinda of dumb. he didn't say anything about making netflix better just that there renameing the DVD services.
"I messed up, but here's why we're not going to fix it."
Yeah, no. You won't be getting my money back.
"Both the Qwikster and Netflix teams will work hard to regain your trust. [B]We know it will not be overnight.[/B] Actions speak louder than words. But words help people to understand actions."
..Fuck you.
[editline]19th September 2011[/editline]
[QUOTE=rilez;32370303]Might be cool if they can actually improve both services. I've never used Netflix before.[/QUOTE]
Don't bother.
Am I the only one who loves Netflix and is saddened by the loss of streaming :v:
I've never had issues with Netflix beyond some broken stream links. Those were fixed overnight.
[QUOTE=Swilly;32372067]Am I the only one who loves Netflix and is saddened by the loss of streaming :v:
I've never had issues with Netflix beyond some broken stream links. Those were fixed overnight.[/QUOTE]
They aren't dropping streaming, they are just making physical rentals into a separate service
[editline]19th September 2011[/editline]
[QUOTE=Glock Samson;32370538]"Both the Qwikster and Netflix teams will work hard to regain your trust. [B]We know it will not be overnight.[/B] Actions speak louder than words. But words help people to understand actions."
..Fuck you.
[editline]19th September 2011[/editline]
Don't bother.[/QUOTE]
You're mad because he can't wave a magic wand and fix things instantly? Because that's the impression you're sending.
So what did netflix do to lose the trust of the people exactly?
[QUOTE=rilez;32370303]Might be cool if they can actually improve both services. I've never used Netflix before.
Videogame rental doesn't really appeal to me but if that's something I ever wanted, it would be the only service where you could rent movies and games under one fee
[editline]19th September 2011[/editline]
Like that might even kill Gamefly[/QUOTE]
I still like Netflix. And anyone who actually cares to look at their situation would understand why they had to raise prices, if they don't they don't stand a chance of staying alive. They expect licensing prices with studios to grow from a few hundred million to over a billion by the end of 2012, so a slight increase in your monthly fee is a small price to pay to help them stay afloat.
[editline]19th September 2011[/editline]
[QUOTE=Cloak Raider;32372104]So what did netflix do to lose the trust of the people exactly?[/QUOTE]
They raised prices by separating the price of rentals and streaming, to make up for the fact that studios are fucking them in the ass with their prices.
I don't understand the hate against netflix. They had to increase their prices. With increased delivery costs, increased fuel costs, increased DVD costs (blu-ray vs dvd), etc. etc., it's only fair they raised their prices.
Don't like it, go back to using Blockbuster with $7 for 2 day DVD rentals.
[QUOTE=Tigster;32372091]
You're mad because he can't wave a magic wand and fix things instantly? Because that's the impression you're sending.[/QUOTE]
Hes playing stupid.
Hes also completely disregarding the 3000 complaints (the Netflix blog couldn't publish more then 3000) in reference to the extreme degradation of the user interface. The Netflix blog was the only form to give feedback on, and even the blog itself does not ask for user feedback. Calling the support line resulted in nothing, as employees who worked in support were just as clueless as the community.
Not only was the interface trashed, but the browse bars for all movies became an approximate 6 times slower. The longer it takes a person to find a movie = less people streaming on a constant basis.
Certain methods of changing the URL can fix this to its original format but this is a hassle and its unknown to a lot of the Netflix community.
Point is - Netflix does not care.
Fuckhead Reed only made this public statement because of the MAJOR drop in community.
[QUOTE=Glock Samson;32372377]Hes playing stupid.
Hes also completely disregarding the 3000 complaints (the Netflix blog couldn't publish more then 3000) in reference to the extreme degradation of the user interface. The Netflix blog was the only form to give feedback on, and even the blog itself does not ask for user feedback. Calling the support line resulted in nothing, as employees who worked in support were just as clueless as the community.
Not only was the interface trashed, but the browse bars for all movies became an approximate 6 times slower. The longer it takes a person to find a movie = less people streaming on a constant basis.
Certain methods of changing the URL can fix this to its original format but this is a hassle and its unknown to a lot of the Netflix community.
Point is - Netflix does not care.
Fuckhead Reed only made this public statement because of the MAJOR drop in community.[/QUOTE]
First off, every subscriber got this email, so anyone who doesn't catch onto what's going on is an idiot. Second, he's the CEO, he isn't the one person in charge of everything, he's just one person.
And how often do you try to send feedback? I'm sure there's an actually worthwhile method to get feedback to them, either that, or like you said, they are kind of busy dealing with all the backlash about the changes, it's just like you can't expect a quick response from Valve right after a major release.
And the slower browse bars are such a small complaint I don't even know why you are complaining about it. It's a small change that doesn't affect anything in the scheme of things.
And you think they don't care? They are investing a shit ton more money into making game rentals possible just to make up for the fact that the service costs more. They are even going a step further, and separating the services to make it easier for customers to distinguish what service they want.
Point is, Netflix is busting their ass and their wallet to try to make up for the fact that you suffered a small increase in price.
[editline]19th September 2011[/editline]
More than that, how is he playing stupid? The first line of the god damn email is "I screwed up". That's taking a lot of responsibility for the anger.
The cool thing about Netflix, to me, was that it was both combined. If I searched for a movie and it wasn't available for streaming, I clicked on it and had it sent to my front door. Now you're telling me I have to sign up in two seperate areas? What a pain.
If they had just added Video Game rentals to standard NetFlix by mail, that would have probably made up for it. But now I might as well pay for Blockbuster instead and get my stuff now.
I'll always pay for their streaming service. Can't find anything that beats it yet.
[QUOTE=SilentOpp;32373951]The cool thing about Netflix, to me, was that it was both combined. If I searched for a movie and it wasn't available for streaming, I clicked on it and had it sent to my front door. Now you're telling me I have to sign up in two seperate areas? What a pain.
If they had just added Video Game rentals to standard NetFlix by mail, that would have probably made up for it. But now I might as well pay for Blockbuster instead and get my stuff now.[/QUOTE]
If they could get by without doing it, I'm sure they wouldn't have changed a thing, but stuidos are assholes, and with the whole market gunning for Netflix's share of the industry, their back was against a wall. It's either raise prices and get fucked in the ass by angry customers, or keep prices the same and get fucked in the ass by everyone else. Is it going to lose customers? Well yeah, clearly, because people get angry at that crap. But at the same time, they don't have a lot of options when the price of their deals is going up constantly.
And I think the fact that they are willing to fork over more money for the ability to rent games makes the small bump in price slightly less painful, especially since it's not even a mandatory price, you can easily opt out of one or the other.
Blah, blah, we wanted more money.
[QUOTE=Used Car Salesman;32374526]Blah, blah, we wanted more money.[/QUOTE]
"Blah Blah, I like to just assume companies hate their customers and take every chance they get to screw them over, even though I don't bother understanding their situation"
Loving FP lmao. Move Studios were fucking Netflix in the ass, causing them to raise their prices. Seperating these services will make it cheaper. Meaning Netflix is for streaming, Qwikster is for DVD's. I will just use Qwikster.
If they are separating services, then shouldn't Netflix and Qwikster be cheaper than the original Netflix? Individually at least?
[QUOTE=Solo Wing;32377288]If they are separating services, then shouldn't Netflix and Qwikster be cheaper than the original Netflix? Individually at least?[/QUOTE]
As opposed to the service now, you could get one or the other and pay about the same as you paid before all this happened for both. But with Qwikster, you also gain access to video game rentals as well as the DVD rentals. So the money paid for Qwikster is worth it, if that's what you want out of the service. Meanwhile Netflix after the change will just consist of the streaming service, which I honestly have no complaints about, I hardly ever actually order a DVD, because frankly I'm just lazy.
If you end up getting both services, yeah, you're paying a bit more than you used to, but you're also getting game rentals, so really it isn't as bad as people are trying to make it sound, especially considering their situation.
The Qwikster name is already backfiring, because this guy wont give up his twitter account.
[url]http://twitter.com/#!/Qwikster[/url]
so the first thing people looking for their Twiiter see is:
"Bored as shyt wanna blaze but at the same time I don't ugh fuck it where's the bowl at spark me up lls"
[QUOTE=jeimizu;32378596]The Qwikster name is already backfiring, because this guy wont give up his twitter account.
[url]http://twitter.com/#!/Qwikster[/url]
so the first thing people looking for their Twiiter see is:
"Bored as shyt wanna blaze but at the same time I don't ugh fuck it where's the bowl at spark me up lls"[/QUOTE]
Wow
[QUOTE=Qwikster]Don't bother telling me who my ex is now dating ! Cuzz now I feel bad for the bitch that has my sloppy seconds :)[/QUOTE]
Nice twitter feed!
neat, i can get games now
[QUOTE=Edthefirst;32372247]
Don't like it, go back to using Blockbuster with $7 for 2 day DVD rentals.[/QUOTE]
And actually Blockbuster is pretty cool now, you can rent any game or movie for a month and switch them out at will for only $1.
I have had blockbuster online and pay $20 for 3 discs (games OR movies) at a time. No restrictions. Pretty sweet deal if you ask me.
This is pretty fucked man.
They fuck us in a ass when they mess up and they try to make a logical explanation why what they did is ok. It isn't. I remember Netflix being a streamlined service and they had to fuck it up like that. Same goes with game companies such a Sony. They fuck you in the ass and if you complain they'll explain why it felt good to them. WHAT
[QUOTE=sHiBaN;32380872]This is pretty fucked man.
They fuck us in a ass when they mess up and they try to make a logical explanation why what they did is ok. It isn't. I remember Netflix being a streamlined service and they had to fuck it up like that. Same goes with game companies such a Sony. They fuck you in the ass and if you complain they'll explain why it felt good to them. WHAT[/QUOTE]
Wow do you even have any idea what is going on? Because you seriously are acting like they make billions of dollars and everyone loves them and all they do is sit and plot about ways to make you mad
It wasn't Netflix's fault
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