Oh, Netflix. After the online film rental and streaming company announcing last year that they would create a separate company called Qwikster that would handle all of their DVD and Blu-Rays, as well as promising “to keep DVD as healthy as possible for as many years as possible,” as well as renting out video games, they faltered a bit, deciding not to split the company into a streaming arm (Netflix) and a rental arm (Qwikster). Now, Netflix has backpedaled even further, stating that they will no longer support the DVD industry, and that the video game rentals won’t be happening at all.
Netflix CEO Reed Hastings has changed his tune in the intervening months, and during an earnings call on Wednesday, announced that “we expect DVD subscribers to decline steadily every quarter forever” and that “we have no plans to enter video games.”
That’s a pretty strong about-face from what was announced in mid-2011. Now that Netflix apparently no longer believes in the viability of DVDs (coupled with the fact that movie studios like Warner Bros. are now forcing the company to wait 56 days before renting out new releases), and is increasing the amount of streaming content (as well as original programming), it seems apparent that the company will likely abandon DVD rentals altogether by 2013.
What do you think about the Netflix changes?