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September 22, 2011

The Netflix Split

by Joseph

This past week has been very interesting in digital media. The main topic is that Netflix is splitting off its DVD-by-mail service. The new service is called Qwikster. They have decided to go all in on the streaming media. This is can be both good and bad. With Netflix streaming only they will have a chance to expand their catalogue. The DVD section while not a black hole on the company will at some point become one in the future. The problem is though right now no one can predict what the future holds.

The major obstacle Netflix has right now for its streaming service is content. While there are some gems on streaming like UP and Toy Story 3. If they can get more streaming content they will be ahead of the game. The problem is that content creators don’t like this because if you can just stream their new releases then they lose money by lower DVD/Blu-ray sales.

As part of the next generation I want to be able to have access to all the digital media. I want to be able to sit down and just search for the program I want to watch. This allows me to take control of the media that I consume.

Now with Netflix, even if they didn’t have a title available for streaming you could get as a DVD in the mail. It was integrated and made things easier. Now with the split they are separating their services and making it harder for subscribers who use both services to continue using it.

Do I like this move by Netflix? No not really, but I understand where they are coming from. I would like to have my streaming and DVD rentals under one roof. When I need to rent DVD I will have to rely on Redbox for new movies that aren’t on Netflix.

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