Skip to main content

Netflix CEO explains Quikster

I got an e-mail today (along with millions of other Netflix customers) from the founder of Netflix about the recent changes.


I've been a subscriber for more than seven years, and don't plan on vacating anytime soon. This letter is just another example of how Netflix treats its customers well.


Customer focused companies are the future of corporate America, in my opinion. Thanks, Netflix, for setting the bar high.


Here's the e-mail in its entirety:


-- --


Dear Jason,

I messed up. I owe you an explanation.

It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.

For the past five years, my greatest fear at Netflix has been that we wouldn't make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us). So we moved quickly into streaming, but I should have personally given you a full explanation of why we are splitting the services and thereby increasing prices. It wouldn’t have changed the price increase, but it would have been the right thing to do.

So here is what we are doing and why.

Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD. DVD is a great option for those who want the huge and comprehensive selection of movies.

I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We need to focus on rapid improvement as streaming technology and the market evolves, without maintaining compatibility with our DVD by mail service.

So we realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently.

It’s hard to write this after over 10 years of mailing DVDs with pride, but we think it is necessary: In a few weeks, we will rename our DVD by mail service to “Qwikster”. We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.

Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, but now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated.

There are no pricing changes (we’re done with that!). If you subscribe to both services you will have two entries on your credit card statement, one for Qwikster and one for Netflix. The total will be the same as your current charges. We will let you know in a few weeks when the Qwikster.com website is up and ready.

For me the Netflix red envelope has always been a source of joy. The new envelope is still that lovely red, but now it will have a Qwikster logo. I know that logo will grow on me over time, but still, it is hard. I imagine it will be similar for many of you.

I want to acknowledge and thank you for sticking with us, and to apologize again to those members, both current and former, who felt we treated them thoughtlessly.

Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions.

Respectfully yours,

-Reed Hastings, Co-Founder and CEO, Netflix

Comments

Popular posts from this blog

Marvels of the Science: Rocks and Things

My kids have a science test today. We've been studying rocks and minerals, erosion and weathering, and other science-y geology stuff all week.

All that work, and we just should have done in Internet search. After all, everything on the Internet is factual when it comes to science.

Here's a perfect example, a quick documentary that teaches us everything we know about rocks and 2 minutes and 43 seconds.

Stretch your brains!


The Least Scientific Nature Documentary Ever -- powered by Cracked.com

More Realistic Anniversary Gift Traditions

New Anniversary Gifts Destined to become Traditional My wife and I have been married for 20 years today. Over the past 20 years I made efforts each year to observe the traditional anniversary gifts. Some of them are certainly more difficult than others, and many of them are hard to find gift worthy in the modern age.
Therefore, I offer you a modern take on anniversary gifts. How many of these will become traditional?
First Anniversary – The Ramen Noodle anniversary. Let’s face it, you blew $30,000 on the wedding, and your student loan debt hasn’t gone anywhere. Share a Cup O’ Noodles. Eat with chopsticks on the floor because you can’t yet afford a couch.
Second Anniversary – The Puppy Anniversary. She’s been looking at you with those eyes that say she wants to start a family, but you just bought a new couch. Get her a puppy instead.
Third Anniversary – The Kinky Lingerie Anniversary. Leather, silk or lace can re-fire the engines after a year of flannel pajamas that smell like the puppy,…

Donald Trump Hates Freedom of the Press, But Why?

Donald J Trump is challenging the concept of free press. He has publicly ridiculed ABC, CBS, NBC, CNN, BBC, the New York Times, the Washington Post, MSNBC, and many other news organizations. Some have called out his twitter rants as being distinctly fascist.
This past week on Meet the Press, John McCain, a Republican member of the U.S. Senate, while not mentioning Donald Trump specifically, called suppression of the press "how dictators get started". Freedom of the Press in the Constitution
Freedom of the Press isn't a new concept. Our founding fathers put it into the original Bill of Rights. Even in the 1789 they realized that a free press was essential for maintaining checks and balances to the power of government.

The Press in Colonial America
Thomas Jefferson, John Adams, Alexander Hamilton and James Madison understood the power and value of the press. But what, exactly, was the press in pre-Constitution America? In colonial America around 1760 there were only 24 new…