Netflix DVD Business Falling, No Video Games By Mail
1/26/12


When you last heard from embattled Netflix CEO Reed Hastings, he was licking the deep wounds cut by Qwikster, the ill-fated DVD and video game service Netflix wanted to launched last September.

However, as it turns out, maybe splitting the business wasn't the worst idea after all.





The company lost 2.76 million DVD-by-mail subscribers during the last three months of 2011, and Hastings told analysts on Wednesday that Netflix will no longer spend money marketing the fading service.

Nor will video games be added in the near future, despite promises to the contrary last year.

"We expect DVD subscribers to decline each quarter forever," he said, ominously.





Not that the bleak forecast should be a surprise to Hastings. As he wrote when announcing Qwikster:

"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) because they are afraid to hurt their initial business.

Eventually these companies realize their error of not focusing enough on the new thing, and then the company fights desperately and hopelessly to recover. Companies rarely die from moving too fast, and they frequently die from moving too slowly."





On the plus side, while the DVD business is sputtering, Netflix itself is doing pretty well. The company added 610,000 subscribers in the final quarter of 2011, which nearly offset the 800,000 it lost in quarter three.

http://news.moviefone.com/2012/01/26/netflix-dvd-business-fall_n_1233529.html

yeah, I think they will be just fine.

I tried their streaming video for 3 months, the first six weeks it did fine (that was of course during the free-trial period). But after the seventh week it would start freezing up or would not load at all. I called their customer service repeatedly & they would get it working each time after I called, but then it was back to the same problems, so I cancelled it. Have they improved their streaming video in the last few months? If not, I imagine they'll lose even more customers. I'd rather pay for a dvd that I can watch than streaming video that won't load or will freeze up.

I use their streaming through my Blu Ray player and rarely have had any problems with it.

i got it wheni had ps3 ididnt like it cuseyou had to updated the ps3 like every week. so i got netlifx /blu ray palyerfor xmas i don't have to updated much. i neeer had any probblem unles netlfix is updateing their site or something i love watching netfix that ok if they don't do games they got one calld flyfish or something you can rented games thur mail. idon't know if their many games i wonted to rent. most people rented for sport werstling or car games. i usual like fithing and rpg game.s i was lookig forwrdfor netliflx renting videdo games. i brougt couple game at used book store i brought goessbump and green lanteri took them back ibroguht nerf game for wii i didn't like it. i mis not haivng block buster or holly wood video was the best pluse they dind't charge you arm and leg to rent video games. i miss renting video games.