A few weeks ago, Netflix announced that they’d be splitting up DVDs and streaming services in to different brands. Qwikster was planned as a DVD and video game delivery service, but as of today this plan is on hold indefinitely.
The executives at Netflix seem to recognize that customers don’t want to deal with multiple log-ins and different payment systems. Besides, the Netflix brand already has a strong reputation and it could be extremely difficult to create a similar level of trust and loyalty for a new name like Qwikster. A lot of customers are upset with recent price hikes, and the potential extra complication of running a second account would have likely pushed even more off the edge to unsubscribing.
Currently, it is unclear if Netflix still plans to introduce video game rentals to its DVD-by-mail service. Such a plan could put even more pressure on Gamefly and Blockbuster, but it might also cost Netflix a lot in licensing, mail delivery, and title acquisitions.
In the mean time, Metflix continues to add new television and movie titles to their streaming services, and that keeps me around as a happy customer.
Posted on October 10, 2011 by admin
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