CEO Reed Hastings recently issued an apology to the fellow Netflix subscribers explaining the recent price hike, the reasoning behind breaking the DVD service from the streaming service, and the future of the company.
At the start of September, Netflix officially split their DVD service from their streaming service. A subscriber was given a choice whether to subscribe to both or either of the two. With the split, the price increased and for many hit a 60% increase. Well we all know where this is headed, disastrous stock due to irate customers who many decided to dump the service. With people ditching Netflix and stocks plummeting, CEO Reed Hastings came forward with an apology sent to each subscriber. Lengthy explanations to the reasons were unveiled for the shift in the company attitude.
Netflix plans to use this company title simply as the streaming service provider while the hard disk DVD portion of the company would gain the new name of Quickster. The reason for their break up is to shift certain areas of the company just for these reasons while adding new content to both.
What will Netflix and Quickster now possess?
Netflix is looking to add more streaming content to make it worth your buck. According to CEO Hastings, the streaming will see an addition of some big content soon, within weeks. Though with Starz Entertainment’s recent departure, what does this mean for Netflix? Hopefully they could possibly regain their contract and find other sources for the customers. Also just recently, Netflix has a new two year contract with Discovery Communications, this will bring forth Discovery Channel programming along with Military and Science channels. The deal also opens the door to Discovery’s huge library of programming.
Quickster will take over the DVD shipping and services while adding video games to their arsenal. Games for the PS3 and Xbox 360 platforms will now be at the disposal to subscribers. Every movie and now games at the hands of customers definitely is a plus.
Another nice feature is if one is a subscriber to both services, the regular Netflix interface can still be used for quick and easy access for either streaming or DVD service.
From the split, plummeted stock, and an apology straight from the CEO of Netflix, is it too late? Can Netflix recover from the damage they have cause or can they regain people with the promise of something new? Only time will tell, but it doesn’t seem as if Netflix has time on their side.
What do you think about the situation? Light up the comment board below and unleash you opinion about Netflix and Quickster.
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