In a bizarre move by Netflix and is due to the negativity towards the increased monthly fee. Netflix will be splitting into two seperate entities Netflix and Qwikster.
Netflix will deal with movies or TV shows that are streaming over the internet. While it's new side Qwikster will take over the DVD rental by mail division that Netflix is famous for and also add game rentals. Customers will have an upgrade option, just like Blu-Rays to add on game rentals for an additional fee. Video Game rentals will consist of Wii, Xbox 360, and PlayStation 3, unlike Gamefly who rents all platforms.
""...if you subscribe to both services, and if you need to change your credit card or email address, you would need to do it in two places. Similarly, if you rate or review a movie on Qwikster, it doesn't show up on Netflix, and vice-versa."
Both services will be completly seperate, different ques, billing options and websites. Why Netflix thinks this is a good idea, I have no idea. This might further cause confusion in the consumer and is less convenient. Especially since they have to sign up for a new service and charged a new separate fee, people do not like seeing more charges, which is why bundling is so popular. It makes everything feel disconnected and less user friendly.
"I messed up. I owe everyone an explanation. It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming, and the price changes. That was certainly not our intent, and I offer my sincere apology. I’ll try to explain how this happened." Said by Reed Hastings, CEO of Netflix.
No better way to show lack of respect to your customers than make it very inconvenient to rent or stream, then charge them for 2 different services when added up, both amount to the same increased rate hike, in what seems to be a rushed business plan. Now Netflix, you can hide your higher fees split into 2 websites, but you fool nobody.
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