Wow. Just wow. After seemingly pissing off half of America by announcing they would be separating the streaming and physical rental arms of their company and charging extra for both, and then watching their stocks fall after that announcement, Netflix has apparently just said, “screw it. We’ll see you in hell, America,” by announcing today that the company will be splitting in two, with Netflix handling streaming video, and a spinoff company, Qwikster, “a Netflix company,” will have its own website and handling the physical rental business. Oh, lord, this sounds like it’s gonna go well.
According to The AV Club:
“The spin-off, Qwikster… which is expected to launch “in a few weeks”; current Netflix subscribers will have to go there to select films, and the site won’t be integrated with the Netflix site, which will solely handle streaming content. The bad news for customers is that there will no longer be any crossover between users’ disc-by-mail and Watch Instantly queues, ratings, or reviews, so essentially, Netflix is no longer offering a one-stop-shopping simultaneous competitor to the likes of Hulu and GreenCine; it’s creating two lesser, separate services, which will bill separately and require wholly separate use.”
So, after Starz has announced that they are pulling their streaming content from Netflix (which includes films from Disney and Sony—that’s a big chunk of entertainment), Netflix’s dropping stocks, and split down the center, it sounds as if Netflix is risking going the way of the dodo bird. And if you hear that weird rumbling in the distance, it’s a group of ousted Blockbuster Video executives laughing and hugging each other is vicious glee.
What do you think of the Netflix business plan?