As a long-time Netflix customer, I was extremely pissed off when I was hearing the news regarding their DVD rental and video streaming services. Unfortunately, the information came in bits and pieces. It certainly didn’t help that Netflix didn’t come out with a statement to the effect of “This isn’t going to go well with most of you. However, we respect you as customers. This is what we’re going to do…” This type of statement would have been nice.
The first thing that I heard is that the companies will be spun off so that they become two separate entities. In a September 19, 2001 article in Wired, they reported a multi-part announcement by Netflix CEO Reed Hastings.
- Hastings will remain CEO of Netflix (video-streaming), while Chief Service and Operations Officer Andy Rendich will become CEO of Qwikster—the new DVD rental service
- Netflix will stay the owner of both companies
When I looked at our bill, I saw that we were now being billed for using both the DVD rental and the streaming services. This was adding up for nearly $20. We certainly had to look at our options.
Believe it or not, we looked at Blockbuster’s Total Access program, which has comparable plans and fees. As I read what the plans include, they seemed pretty attractive:
- Unlimited rentals by mail (Netflix/Qwikster’s selling point)
- Unlimited in-store exchanges for participating locations
- Many new releases available 28 days before Netflix and Redbox
- Games and Blu-Ray included
So I really thought about it. I can get DVDs delivered to my door. We have a Blockbuster near by, so there’s the possibility of in-store exchanges. I could get movies faster through this than Netflix or Redbox (which I don’t use). Plus, I could rent games and Blu-Ray. The idea of “defecting” was certainly tempting.
All of these developments made me think that the climate of movie rentals is certainly changing. With the wave of Blockbuster store closings, I thought that it was a goner. However, the idea that people like me were considering using Blockbuster’s competitive Total Access program was saying a lot. Also, the fact that both Qwikster and Blockbuster include video game rentals in their plans, makes me think that they’re firing a shot across Gamefly‘s bow. With all the money that can be made through rentals, this is certainly anybody’s game.
So for any of you, I would definitely encourage you to explore your options. I have used Netflix’s streaming service and have to say that its selection is pretty skimpy. For me to be worthwhile, they’d have to beef up their choices. Also, I was surprised, in doing my research, the Blockbuster offers an alternative to Netflix/Qwikster. Lastly, I wouldn’t be surprised if some new player will emerge. Netflix emerged as the next step in the evolution of rentals. It’s a matter of time, until someone else appears.
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