Netflix's Qwikster Switch-Up Explained: Here's What You Need To Know

-- Puzzled by Netflix Inc.'s recent changes? You're not alone. Here are basic questions and answers about the company's reversal of its decision to split off its DVD-by-mail service and rename it "Qwikster."

Q: Will I have to go to two websites to manage my DVD queue and watch streaming videos?

A: No. Netflix on Monday backed off its plan to create two separate sites _one at Netflix.com for streaming videos, and another at Qwikster.com, for DVDs.

Q: Will I still have to pay for the services separately?

A: You'll have one account for both services. But the price changes Netflix instituted in July, under which it charges separately for streaming and for DVDs, are still in place. In other words, streaming is no longer a freebie thrown in with the DVD subscription.

Q: Why did Netflix change its mind?

A: Customers had greeted the idea with jeers and threats to take their business elsewhere. In a blog post, CEO Reed Hastings said he's realized the change would make things too complicated for subscribers.

Q: I'm confused. What plans does Netflix offer now _and how much does it charge for each?

A: The video streaming service costs $8 per month. The DVD service starts at $5 if you want one DVD out at a time and a maximum of two mailings per month, and goes up to $44 for those who want to have eight DVDs out at a time and unlimited mailings.

Q: Why did Netflix think splitting the site in two was a good idea to begin with?

A: The company sees the streaming service as its future, and what it wants to focus on. The DVD-by-mail service got Netflix into homes, but it's expensive to mail DVDs and the potential for growth is limited. In homes, the streaming service is making the jump from PCs to the living-room TV, thanks to game consoles, DVD players and TVs that come with the ability to connect to the Internet. It's also going outside the home, since Netflix is now available on smartphones and tablets.

Comments

[Fred Testerman]

11:04 AM on 10/14/2011

As for the Q&A statement that Netflix wants to get away from the DVD rental business - why is it then that for many TV series, one or more episodes in a season will only be available on DVD. Want to watch the show in continuity then you have to wait for the DVD by mail. There is NO excuse for a 60% price increase! Especially when the streaming quality is so poor at times. Its not our internet service as Netflix's website will indicate "we are experiencing problems".

[medialv2]

03:52 AM on 10/13/2011

This company is led by a dope. I smell massive CEO bonuses !!!!

[aphextwin07]

01:29 PM on 10/12/2011

epic fail averted

[frank day]

09:15 AM on 10/12/2011

Just got an email from NetFlix telling me to come back.

No reasons for why I should, no apology, no explanations.

Hey Reed !! Lump it.

[DaniFoxy]

09:00 AM on 10/12/2011

Dude, no one is asking the most important question of all... will they still have games? The Qwikster deal was to have games for the same price as the movies.... come on already!!!

[NightGod]

07:51 PM on 10/11/2011

That reminds me. I need to cancel my subscription to Netflix. Almost forgot and gave them even more cash!

[mlambush]

07:50 PM on 10/11/2011

Netflix -- stop digging.

[johnh1019]

07:35 PM on 10/11/2011

I really liked how Reed blamed us. Classy!

[the964kid]

07:12 PM on 10/11/2011

Q: What bozos at Netflix thought that increasing monthly fees by over 50% on many customers and then splitting their services into two companies was a good idea??
A: We're sure that CEO Reed Hastings had the final say on these decisions.

Q: How much value did these terrible decisions costs the company?
A: The rate change caused the company to lose as many as 6.5M subscribers, and as of September Netflix had lost half of it's stock value.
http://news.yahoo.com/netflix-lost-half-value-two-months-172058230.html

Q: When will this terrible management team been fired?
A: Hopefully any day now...

[Paola Cresti]

05:33 PM on 10/11/2011

Dear Netflix, it's not that we're too stupid to use two websites, it's that Qwickster was a stupid name at best and if you really needed to separate the websites for DVD Rental and streaming, you DON'T CHANGE THE NAME TO THE ALREADY ESTABLISHED SERVICE that people have been using for 10 years!! You change the name to THE NEW ONE that people are catching on to. It's called common sense, you might want to pay your marketing people to buy some!

[Beg4Nothing]

05:11 PM on 10/11/2011

They just don't get it. It wasn't about the name change or the split in services. People were reacting to the price increase when the company was already making big profits and the stock was rising, all in a down economy. It was corporate greed, period. When will the CEOs of America wake up? Oh, and how do you like the stock performance of Netflix now? What a joke.

By the way, I don't get what's so great about streaming unpopular old movies no one wants to watch. Is Netflix trying to be the next HB0?

[Paola Cresti]

05:37 PM on 10/11/2011

very true on the economical side, however you know there are entire studies devoted to brand loyalty. Look at the constant fight Pepsi does to Coke. They use constantly comparative advertising whereas Coke does not. Coke still has the lion share of the market.

[Mr Spann]

06:19 PM on 10/11/2011

I've seen quite a few people complain about the movies found on Netflix streaming service. And I'll admit that they definitely could have MORE. I've had no trouble at all finding things to watch that I enjoy. I guess I must be one of the exceptions though.

[Ramart]

04:23 PM on 10/11/2011

The explanation offered, that Netflix changed its mind about Qwikster in response to customers' complaints, seems naive, IMO. I think the apparent capitulation really was a crass, preplanned ploy to make customers forgive or forget the prior split of DVD+streaming into two separately priced services. I was OK with streaming when it was a free add-on to DVDs, but I won't pay for a laggy, title-limited service that only gives me 2-channel audio, vs. the 5.1 DTS-HD I get with Blu-rays. Blockbuster is now giving me unlimited, 1-at-a-time Blu-rays for the same $9.99 and with the same 2-day-by-mail turnaround as Netflix, but Blockbuster doesn't make me wait more than a month for access to new releases. Unforgiveable series of goofs, Netflix.

[clearthinker16]

03:49 PM on 10/11/2011

I will say again, the whole concept was not well thought out, but then when does big business ever think when they are they dominate their market sector, seldom. I worked for a company that was a market leader and management kept reading their press releases and got passed by, a once 250M company is not a shadow of itself. Netflix lost a lot of subscribers with 2 rate increases in a down economy and then this newest now rescinded brain spasm. I love when they let some accountant run numbers showing them how this will increase profitability, only to be wrong again.

[Mondayboy]

03:48 PM on 10/11/2011

I think the CEO of Netflix is related to Mitt Romney - there is no bigger flip-flopper in the Tech world at the moment.

[psnyder325]

03:08 PM on 10/11/2011

It would now be nice if Netflix would stream movies that anyone really wants to see. The "watch instantly" selection is abysmal!