While I’m on a rant about technology, let’s talk about that weird ass email all the Netflix subscribers got this morning from Netflix CEO Reed Hastings.
For those of you just joining in, I’ll catch you up. Two months ago, Neflix announced a new pricing structure. Previously, DVD subscribers could essentially stream videos from Netflix for free. There was no additional charge for that, and there was also no way for someone to subscribe for streaming only if they don’t want to order DVDs. Now you can get:
- Unlimited Streaming with no DVDs for $7.99 a month
- Unlimited DVDs with no streaming for about the same price as before (depending on how many DVDs you want at a time)
- A package plan of unlimited streaming and unlimited DVDs for about $8 a month more than you were previously paying for that combination of services
Let’s forget for a second about the substance of the email. He’s trying to justify recent business decisions to his loyal customer base. There’s nothing wrong with that. The tone of the email is just weird and creepy. He starts out by apologizing for not being “more communicative” about why they were making these changes. The “apology” just comes across as smarmy. It’s kind of like a dude who beats up his girlfriend and then says he’s sorry he didn’t properly explain why she deserved to be beaten up.
And then he tacks on the NEW information that the new price structure is just the beginning. He’s actually planning to split DVDs and streaming into two different businesses, accessed on two different websites, and it’s kind of like that apologizing dude who just beat you up is now telling you that in the future, your beatings will be a little more severe because the less severe beatings of the past just aren’t satisfying his bloodlust enough.
Okay, now let’s talk about the content.
It makes some sense to divide the DVD-by-mail and streaming video services into two separate charges. They will certainly be able to make more money that way. For people that only use one of those services, it probably does make sense to make them available separately. They could have done that with a smaller increase in the “package” price and a reasonable option for subscribing to either one or the other.
I don’t think they needed to raise the prices as much as they did. That was just hubris and greed. Nobody else does what they do, so essentially, they can charge as much as they want.
But I’m really more disappointed in this new part.
First, I really LIKE the fact that I can currently look up a movie on Netflix, and if I want to, I can stream it right then and there on my laptop, or I can add it to my DVD queue. I DON’T like the fact that if I want to watch something now, I have to go to a different website and subscribe to a different service to do that.
Secondly, I think it’s weird that the DVD service, which is what Netflix did originally and became famous for, is the part being split off into another company instead of the other way around.
And thirdly, Qwickster is just a stupid name for any business, regardless of what they do.