Netflix spins off DVD by mail, adds video games
There was a bit of a shake up at Netflix today. A few months back Netflix took a lot of heat after announcing price increases. Personally I thought it was a fine move. I don't mind paying more for potentially more good content from a service I quite like. Other users didn't take so kindly and bitched and moaned on the internet with a few even canceling their subscriptions.
So here we are today and Netflix is separating the DVD option even further from its streaming service. Moving it to a whole new company in fact. Qwikster is the name you will begin seeing on your red envelopes from now on. Those who subscribe to both do not have to do anything, but you will see two charges (one from Qwikster, one from Netflix) if you subscribe to both streaming and DVD by mail. You will also not see any price increases (or decreases) Netflix says they are done with that. For now.
The hope is by separating the two services they can grow independently and not hold one another back. The first bit of growth comes from Netflix Qwikster, now offering video games. PS3, 360 and Wii games will be offered for a additional fee. If that fee will be as cheap as the blu-ray upgrade is yet to be seen.
I think the biggest let down here is that the websites are not compatible. So if you're looking for a DVD on Qwikster you will have to do a separate search on Netflix to see if that film is streaming as well. That will likely be a major annoyance for a lot of people. The addition of video games is great but I hope to see some new content and innovation coming to the streaming side as well. And with the addition of video games is this the end for GameFly? Watch a video of Netflix CEO, Reed Hastings and Qwikster CEO, Andy Rendich talk about the new initiative after the break.
Mike
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