Comments on: Netflix’s Split Misses The Trick http://paidcontent.org/2011/09/19/419-netflix-split-misses-the-trick/ The economics of digital content Fri, 13 Dec 2013 18:54:38 +0000 hourly 1 http://wordpress.com/ By: Kevin http://paidcontent.org/2011/09/19/419-netflix-split-misses-the-trick/#comment-85305 Wed, 21 Sep 2011 16:26:53 +0000 http://paidcontent.wp.gostage.it/2011/09/19/419-netflix-split-misses-the-trick/#comment-85305 Some thoughts on the “branding” aspect (Netflix vs. Qwikster):

http://lairigmarketing.typepad.com/lairig_marketing/2011/09/netflix-two-brands-are-lesser-than-one.html

]]> By: Adam http://paidcontent.org/2011/09/19/419-netflix-split-misses-the-trick/#comment-85304 Wed, 21 Sep 2011 14:10:41 +0000 http://paidcontent.wp.gostage.it/2011/09/19/419-netflix-split-misses-the-trick/#comment-85304 Their bigger issue in all of this was simply that they didn’t come clean with people. If they had to split because of licensing issues, then simply tell customers that. Then people would be angry at the Studios and not at Netflix. Also they could have separated the two services internally and legally, but maintained an integrated website and brand so that people who did have both services could cross-search…

]]> By: James http://paidcontent.org/2011/09/19/419-netflix-split-misses-the-trick/#comment-85303 Wed, 21 Sep 2011 03:08:28 +0000 http://paidcontent.wp.gostage.it/2011/09/19/419-netflix-split-misses-the-trick/#comment-85303 This decision is the beginning of the end for netflix.  Their core advantage as a streaming service was the fact that they don’t suffer nearly as much from not having a large streaming library.  If a movie isn’t available, no problem, just add it to your dvd queue.  Without that, the limitations on the library are going to drive away a customer base used to finding almost everything they look for.  They may get better at mailing dvds and better at streaming as his post suggests, but that will be overshadowed by the fact that they will get worse at providing a service to their customers.  Deliberately making your service less useful is rarely a smart business practice.
As a response to customers being upset by price changes it’s even more insane.  I’ve been a netflix subscriber for 7 years, and I wasn’t bothered by the price change because I understand sometimes the price has to go up when you’re pioneering a new industry and can’t get content providers to give you the same deals the second time around.  But now, they’re telling me I can’t get the integrated service at any price.  I’m sure I won’t be the only loyal customer leaving over this one.  

]]> By: Mark http://paidcontent.org/2011/09/19/419-netflix-split-misses-the-trick/#comment-85302 Tue, 20 Sep 2011 15:37:33 +0000 http://paidcontent.wp.gostage.it/2011/09/19/419-netflix-split-misses-the-trick/#comment-85302 I was using both services, DVD and streaming. Now, if they had a better streaming selection, I would have let go of the DVD service. But since their selection is not good and they were going to raise my price unreasonably, I simply left. There are other ways to watch movies. Now Netflix has not only lost a customer, but my goodwill as well. Should they even offer me to go back to what I had, I would not do it now. I don’t like them or trust them now, and I will steer others away from them. I’m glad to see that about a million other former customers did the same. You can’t take things away from people and expect them to be happy with what you offer.

]]> By: Clare Cooke http://paidcontent.org/2011/09/19/419-netflix-split-misses-the-trick/#comment-85301 Tue, 20 Sep 2011 09:34:34 +0000 http://paidcontent.wp.gostage.it/2011/09/19/419-netflix-split-misses-the-trick/#comment-85301 Seems illogical and counter-intuitive. Why waste the opportunity to migrate customers to digital in a seemless, single brand environment, especially given the upset already caused by splitting packages and hiking subscription fee. Surely the logical solution would be to reinforce the Netflix brand by incentivising physical customers to sample streamed product and hence move across to digital-only services over time without fragmenting brand.

]]> By: Mr. Brimm http://paidcontent.org/2011/09/19/419-netflix-split-misses-the-trick/#comment-85300 Mon, 19 Sep 2011 20:51:51 +0000 http://paidcontent.wp.gostage.it/2011/09/19/419-netflix-split-misses-the-trick/#comment-85300 They didn’t need a new site though. They already separated the two services at the start of Sept

]]> By: Rodrigo Dauster http://paidcontent.org/2011/09/19/419-netflix-split-misses-the-trick/#comment-85299 Mon, 19 Sep 2011 15:32:08 +0000 http://paidcontent.wp.gostage.it/2011/09/19/419-netflix-split-misses-the-trick/#comment-85299 I was convinced by Bill Gurley’s argument that the split was necessary because Hollywood would be requiring Netflix to pay, for streaming rights, a fixed fee per registered member per month (as per cable deals). It seems plausible that the studios were reluctant to let Netflix off the hook for the 2m to 3m members that were DVD only, about 10% of membership.  The solution was, therefore, to move those customers into another business.  Netflix will still have the opportunity to migrate customers from one business to the other.
http://abovethecrowd.com/2011/09/18/understanding-why-netflix-changed-pricing/

]]>