Netflix will cost more

An interesting article giving some background on why Netflix is flailing around like an injured animal:

http://www.wired.com/epicenter/2011/09/wired-tired-new-netflix/

 

I can't help but look at Netflix and think they are having the same problem newspapers did -- they have one business model that provides all their revenue, and a more robust product offering, but it's quickly becoming a dinosaur so they have to move everything to the Internet without being completely clear how, when or if they will ever be able to make enough money from that. In the process they are pissing off their loyal customers and not entirely sure where their new ones are going to come from.

 

It seems to me that they are trying to avoid the fate of newspapers. They aren't going to cling to the DVD subscription service no matter what. They are going to have to go all-in behind streaming, for better or for worse, eventually.

They were kind of hoping their huge subscriber base would give them the heft to negotiate favorable content deals, but the content owners called their bluff.

 

But in doing so they are turning their back on what is making them the most money now. That's what newspapers did. (I'm pretty sure we have a good-sized difference of opinion here, because I'm one who believes newspapers should have prioritized the existing product even longer than they did, at least until they figured out some way to make money off the Internet.

 

Ah, I see where you are going with it. Fair enough.

 

It was mentioned in one of the articles posted and it's been popping up all day online, but it still bears calling out. Netflix is entrenched in online business and has a seemingly solid grasp of the power of social media (109K Twitter followers). So how does it make a major announcement, unveiling a new strategy and brand name, but fail to check Twitter to ensure their new name isn't already taken. By a weed-smoking, foul-mouthed Elmo.

http://twitter.com/Qwikster

http://mashable.com/2011/09/19/netflix-qwikster-twitter/

 

If this is Netflix's grand plan to kill its DVD-by-mail business, it just might work. I'm seriously considering whether I want to bother with it anymore, especially since Amazon's download-rental thingy ain't too shabby at all.

 

http://theoatmeal.com/comics/netflix

 

Awesome.

 

Quickdraw would love some attention, even from former Netflix users who mistakenly visit his webpage/Facebook/Twitter.



And for the wrestling marks, WWE Superstar R-Truth, formerly known as K-Kwik, ponders reverting to his old persona.

 

Just banged the DVD portion of my Netflix. I just don't use it any more. I'm more or less playing $8 a month to watch max two DVDs a month. I'll go with the streaming for now and just hit Redbox when I want a DVD.

 

This is my plan as well. I'm also eyeing Amazon Prime, or perhaps Hulu+. Anyone have experience with these? How do they compare with present, sucky Netflix?