Today, in what was probably the worst time for Netflix, they announced they are creating a new brand to split their DVD and online streaming services. This news comes right after users (like myself) have dealt with increased pricing and the loss of their major online content provider – Starz.
You can make judgements for yourself on the deal, but this continues to solidify my understanding of the near future – DVDs will be dead (and soon). Netflix has kept their bread and butter, powerful brand name with the streaming service. They have given an aging DVD platform a dot com bust name like Qwikster so that when it dies – it will have less association with its’ parent company.
I know, I know, everyone is up in arms with the price changes and the lack of current content. I believe it is only a matter of a few months before Netflix streaming signs some other great deals to get premium shows again. People forget that it was Starz that got greedy (not Netflix). Netflix reportedly offered 300 million, which was 10x the original contract to Starz and then Starz rejected it.
Anyway, for me and my family – I will stick with Netflix until Starz runs out at the end of February 2012, and then play it by ear. One thing is for certain – I will never sign up for DirecTV, Dish Network, or Comcast TV service ever again.