The Netflix Conundrum: Half-Baked Edition

Netflix has killed Qwikster, its video-mailing service.  It plans to keep both services under one website, and allow users to manage their account with only one login.

“It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs,” Hastings said in the blog post Monday.

Netflix’s decision to stay one website is likely to please subscribers. But its turbulent relationship with subscribers over the last three months raises questions about the company’s management, as it attempts the transition from a DVD-by-mail business to one that largely delivers movies streamed over the Internet. Netflix movies can already be streamed directly to PCs, smartphones, tablets, DVD players, game consoles and TV sets.

The Qwikster announcement was a follow-up to the July price change. Analysts saw it as a way for Netflix to distance itself from the older DVD business, which has less future potential than Internet streaming.

If Qwikster was pulled so quickly, one has to wonder if the plan was given full consideration. That also would leave one to wonder if the price hike and other Netflix services were getting equal due diligence before being thrown on the customers.

I don't think Netflix is going in a good direction, but they have plenty of time to redeem themselves. Let's just hope they do that.