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

Friday Funnies: a couple LOLcats and one shameless plug

Is this the new flavor at Kungaloosh Gourmet Tea Company?

Friday Funnies: Aging Gracefully

I pointed to two old drunks sitting across the bar from us and told my friend, "That's us in 10 years".

He said "That's a mirror, dip-shit!"
---





Sunfyre's Google Glass Fundraiser (a.k.a. shameless begging)

Well, Google Glass went on sale today for a limited time to the general public.

Unfortunately, I can't exactly spare $1500 right now.… Commence shameless begging!

I try not to play the "help the disabled guy" card.  It goes against my nature. But in this case, I figured I'd make an exception (at least this is how I'm rationalizing it in my own head).

Google Glass has amazing potential for people like me. I can't use my arms or legs any longer. I use my voice recognition software to type, design websites, write articles and marketing plans for clients.

In the era of smart phones, they aren't very friendly to people like me. Most of them can't be navigated with a mouse, and even Apple's Siri doesn't do a great job with voice activation. First, you have to press a button just to get her attention.

but with this device, which connects through my android phone, I'd be able to read email and navigate my basic telephone functions with wearable g…