Netflix sent out an email to all members (I assume) explaining the recent price hike and their plans to split the DVD rental part off from the streaming part. Here is what was in the email.
We kept Netflix, even after the rate hike. 90% of our use is for streaming, but we do get the occasional movie or TV series not available for streaming. We'd switch to streaming only except that the library of movies for streaming is pretty bad (though the TV show selection is great). I'm assuming that gradually more and more movies will be available for streaming and the DVD part will become obsolete over time.
What do you think? Do you have/use Netflix? Was it smart to split the service into 2 separate things (with separate queues/websites)? Will they both survive somewhat separately?

Re: Discuss: Netflix
We use Netflix for the DVDs not streaming, so our monthly fee actually went down since we got rid of the streaming option.
I think Qwikster is the dumbest name ever and I hope this isn't the beginning of the end for Netflix.
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100% agreed. The streaming was at best, just okay. We dropped Netflix after the hike. We were with Netflix since they were came out and were really upset that they kept increasing prices dramatically (part of the reason was because DH HAD to have Blu-Rays.)
But it made me really mad when I read in USA Today a quote from the head of Netflix responding about the recent increase in price and splitting. He essentially said something like "so what if they lose a couple hundred customers? We have millions of customers." So essentially he does not really care about the customers. This was the last straw that made us cancel.
Their stock has been going down since and I think it's now thousands, no hundreds, have dropped Netflix. Starz now dropped them, and now I hear there are issues with Disney and Sony.
We will go back, but when they re-do their business model so that it is more customer friendly.
This.
We also kept just the DVD's. We didn't use the streaming enough. If I had both, I would be highly annoyed to have to go to 2 different sites! I think they totally ruined their company by doing this.
We don't have netflix- we did ages ago in NYC when it was just DVDs and liked it, but haven't pulled the trigger on doing it again.
I think it was smart for them to split it into 2 different plans because really it's 2 separate businesses and the dvd plan and streaming plan have different competition (Amazon, Hulu, vs. Redbox, etc.) You can now buy TVs w/ Netflix as a built-in app on your TV, etc.
I think they will survive separately- or at least the streaming will, I bet they split them in order to protect one or the other.
Slight OT- I have been reading more and more about people doing away with cable and just using Netflix streaming, Hulu, Roku, Amazon VOD, etc. We are thinking about doing this in our master bedroom because we don't have a cable jack there.
The streaming for Netflix will NOT survive the way it is now. Like others have mentioned, Starz dropped them and now there are issues with Sony and Disney so it may become worse. So think twice before you opt for the Netflix streaming-only option.
We dropped the streaming service when the changes were first announced. The movies we wanted to watch only seem to be available on DVD. Even those movies seem to take forever to get to DVD. That being said, we're going to cancel the entire service next month. We've actually discussed dropping cable like Daisy mentioned and using Boxie. I'm fine with it, but DH isn't sold 100% due to his love of sports.
Managing 2 queues on 2 different websites sounds like a nightmare.
Really? Either you're exaggerating, or I use my streaming service really differently than you do. I don't really use my streaming queue at all. If we want to watch something it's either a series that we're working our way through, so it's in our "recently watched" when we want to look at it - or we're just trolling around looking for something, in which case we're just browsing the recommendations that pop up on their own or searching for something specific - which we can directly on the TV.
I sign on to actually add things to my streaming queue about once every 3-4 months. if that. And it's usually just because I'm bored and want to make a list of stuff to watch to show MH.
And ummm...I hate to have to point this out - but people, you can use the same logon for both websites. This doesn't have to be as complicated as you're making it sound.
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Wawa, I really think it would be a nightmare. Checking back and forth to see what movie/TV show is next, deleting items you might have watched online from the DVD queue so it doesn't get sent to the house, finding out that DH rearranging the DVD queue and only his movies are showing up at the house. Maybe it's just the way we manage our queue, but we would leave a DVD in both places and delete accordingly.
Jumping back and forth from two sites would get annoying to us. If we hadn't dropped streaming already, I'm sure this change would have been the icing on the cake. I bet plenty of other Netflix users agree and will respond by canceling service.
huh. Yeah, I guess we just use the service differently.
I mostly use the streaming to watch TV back episodes of assorted sci-fi shows and british mini-series and watch random old 80's movies. Those aren't exactly things I'd put on my DVD queue, which is full of more current movies, plus stuff like Mad Men and True Blood.
Since there's really very little overlap it's not really a hardship for them to be truly seperate.
i hope both halves of the company survive though. I like both, I use both.
My Goodness...another food blog. Featuring: Macarons from a old post with a photo taken by my mom for a break from my crappy food photos!
Mad Men is available instantly, just fyi
That's what we're currently watching.
And Wawa, our use is similar to yours. We use the instant queue for TV shows (old and more recent) and I don't know what's actually in our queue since I just go to the recently watched list. We barely use our DVD queue. We get 1/month but we'd keep it for like 3 months or something. Now we're watching Dexter on DVD so we return them more quickly. Dexter used to be available instantly, but it suddenly became unavailable. Highly annoying, but probably not Netflix's fault.
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I am not familiar with the company's latest activities, but I wouldn't be surprised if the split was done for some sort of investment banking type purpose, like the eventual sale of one of the businesses.
Also I think it's evident from this post that the 2 businesses have very different markets.
of course it is now that we're all caught up.
My Goodness...another food blog. Featuring: Macarons from a old post with a photo taken by my mom for a break from my crappy food photos!
I don't understand why they bothered splitting the business into two, and don't care enough to go hunt down the articles.
We dropped Netflix when they upped their rates because it pissed* me off. DH loves the streaming, but I hate the crappy selection. I wasn't using the DVDs option often enough to warrant keeping it.