pyehouse
19Sep/110

Netflix and Qwikster, Breaking Up Is Hard

Netflix logoI swear, I'm going to quit sleeping. I go to sleep and all sorts of things happen overnight. I wake up and it's like gremlins have come in and moved things around. Now it seems my DVDs aren't coming from Netflix anymore, they're coming from some Qwikster place? Same label and everything, just a different name. Anyone see this coming?

It's interesting they did this, though not completely surprising. Reed Hastings, CEO of Netflix, has made no bones about wanting to grow the streaming side and speculation has been running high that they were looking to the streaming business as the focus of their future. Honestly, in the long run I think physical media delivery is going to only be decreasingly attractive, both as a business venture and as a product (the two do go hand in hand after all). But that shift is only going to happen when fast internet is available in more homes and, more importantly, when content is given equal availability via streaming as well as physical media. Until then, sure, if you ship, they will come.

I said not 'completely' surprising though, didn't I? And I mean it. For streaming to take off, one of the two factors is going to be having more content, and higher quality/current content, available for streaming. But Starz is taking their ball and going home because Netflix didn't want to pay the new, much higher rates Starz requested. I get that. I just hope Netflix has a plan in place to replace some of that content.

Of course this may be a way to mitigate potential disaster, too. Consider... if the streaming business does take off, it won't be hampered by what I imagine will be declining business on the DVD side in years to come. Yay. And if this gambit doesn't pay off because Netflix can't secure that higher quality content and all goes to hell in a handbasket... well, they've still got their DVD business, though at the loss of a well established brand in preference to a newly minted brand. Which they now have to share with a pothead on Twitter.

On a personal level, I really want to see Netflix succeed (you know, the new super sleek, purely streamy Netflix, not that mangy old dual business channel, clearly crufty Netflix) because I prefer to stream. It appeals to my whimsical nature when it comes to deciding what I'm going to watch. With a delivered DVD sitting there on the TV stand, I feel compelled to watch. Like I'm obligated to watch it as quickly as humanly possible just so I can return it because "oh my gosh they might be missing it and what about that mother of seven in Wichita who really needs this DVD gaaaaahhhhh". So, dear overlords of movie and tv content, please help me out. Destress my life. Let Netflix have reasonable rates for streaming your schlock er, content. A rising tide lifts all boats and all that.

Now let me get back to watching this next episode of 'Haven'. Gotta get this disc back this week.

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