[arithmetic]

If you had to pick between DVD and streaming service, and make one of them phenomenally better than what it is now, which one would you pick? DVD, because everyone knows and loves it? Or streaming, because it's growing rapidly? You get to pick one.

With the split, Netflix gets to focus entirely on streaming - make it better for the customer. Which means, more (and better) content, faster and better streaming service, Netflix on more devices, providing Netflix outside US and Canada etc.

And Qwikster gets to focus entirely on DVD service - which means expanding the DVD catalog, getting video game rentals for Wii, PS3 and Xbox 360.

As a customer, you get a much better Netflix and/or Qwikster experience. As a Netflix employee, I get to focus entirely on making streaming better, faster, available on more devices, and in more regions than we have today, without having to worry about compatibility with the DVD service.

[ctdonath]

As a paying customer,

I don't want my experience dominated by picking between one medium and another.

I want to pick from a unified comprehensive content catalog, and get the content on whatever medium is available/convenient.

I want a single unified queue which I can append and rearrange with ease, not have to maintain 2+ queues of content separated only by medium.

I want to add title X with the intent of seeing it on pristine Blu-ray, and then on a whim watching it right now when streaming rights are negotiated - _without_ having to do a deliberate search on another site ("nope, not streaming yet").

FWIW: I was at Kodak when they decided that the distribution model was more important than the customer experience. You remember Kodak? used to make film for cameras? film? nevermind. Big name in the photography business, now bulldozing five miles of disused manufacturing buildings for tax reasons.

Splitting the delivery departments was smart, realizing streaming is the winning long-term move was smart, unifying the customer-facing content selection to cover all media would be smart. If I pick a title, I want the choice of media subordinate, not dominant.

[jonknee]

How does splitting them up make them each phenomenally better? Why should the customer care about Netflix's internal organization? Make the same changes, just keep the top level name and details like accounts/recommendations.

If I buy a Macbook Pro it's from Apple and if I rent a movie from the iTunes store it's from Apple... They are completely different business units internally, but to the customer it's the same company and I can use the same account for either purchase.

[bostonpete]

One theory, discussed by Bill Gurley in the post below, is that it'll put them in a better negotiating position with the studios, who were trying to get a percentage of Netflix revenues (not just the streaming revenue)...

http://abovethecrowd.com/2011/09/18/understanding-why-netfli...

[asr]

This has the ring of truth--otherwise, why not just better separate the divisions within the Netflix brand, as many (angry) commentors have suggested?

An additional possibility that occurs to me is that the movie studios' well-publicized dislike and fear of the streaming business is hurting the physical DVD business. Netflix has had to accept some pretty bad terms from studios, like delaying their availability of new releases, in part because studios see Netflix as a long-term threat. Quickster, on the other hand, should be able to build better relationships with studios precisely because they're not a threat to the studios' long-term dominance.

Basically, it's true that this is not the most customer-friendly move in the short-term, but the movie studios' strategy in the medium-term was to kill Netflix. "Continue to grow in the same direction" was not an option because the studios hated it, and this way both pieces of Netflix have at least a chance to survive.

[Triumvark]

> If you had to pick between DVD and streaming service, and make one of them phenomenally better than what it is now, which one would you pick? DVD, because everyone knows and loves it? Or streaming, because it's growing rapidly? You get to pick one.

Depth of catalog is the most important feature for me. I especially like watching HBO shows without paying tons of money for cable. I also sometimes like watching really obscure films. Films which were released on DVD at one time, but where it may be hard to track down anyone to authorize licensing for streaming.

Which should I pick?

Before Netflix, I satisfied my tastes at the independent video stores around town. Netflix killed those. Naturally, I'm sensitive to any changes that might undermine the DVD service.

The best solution, as I've mentioned before, is to just allow obligatory licensing. Let Netflix convert its entire DVD catalog to streaming. Make it pay a fair statutory fee whenever it streams anything. If a content owner cannot be found, allow the fee to be collected by a designated rightsholder organization (something like ASCAP) until claimed by a verified owner of the content.

[hdctambien]

Did Netflix kill independent video stores? Or did Blockbuster kill them?

[Triumvark]

Fair question.

We had a few video stores that really specialized in the long tail. They sat right across the street from Blockbusters or Hollywood Videos. Stuck around a few decades, thrived on the indie image (sorted movies by director, that sort of thing). They made it through BB's reign, and passed away only recently.

But eh, that's my limited experience. I'd welcome more data. Call it a hunch for now, and an open question.

[WalterBright]

The local video store owner around here told me when it closed that it was netflix that did her store in.

[MatthewPhillips]

You can do exactly that without rebranding the product. They're called divisions. Give each one a CEO, but to the customer they should all be Netflix.

[fluidcruft]

But divisions can't go bankrupt and die as easily. Qwickster or whatever it is has a death sentence. It's value wull be polished just enough to sell it off to suckers. And when it dies Netflix will just shrug.

[majikrooster]

He must of done a much better job getting the employees to drink the kool aid then the customers

[cyberguppy]

Must...of?

http://www.urbandictionary.com/define.php?term=Must+Of

[ABCD_FUFU]

Its probably just a marketing drone. The level of clueless ness at netflix is astounding. How about the we'll get rid of reviewers that are 40 times better than our clueless recommendation system and replace them at a future date with the getsapo facebook? Whats that you say gestapo facebook is illegal? Oh well we didnt want your opinions anyway. We replaced the customer with a robot.