October 27, 2016
        "The Circle" and "The Lost City of Z": Which potential 2016 contenders got bumped to 2017?                Natalie Portman, Janelle Monáe, Matthew McConaughey, Bryce Dallas Howard, Edgar Ramirez, Stacy Keach at Hollywood Film Awards                Viola Davis will be campaigned in Best Supporting Actress for "Fences"                Mel Gibson to be Honored with the Hollywood Director Award at the 20th Annual Hollywood Film Awards                Michael Moore drops a surprise new film with "Michael Moore in TrumpLand"                Hollywood Contenders: New Oscar Predictions for October                Nicole Kidman, Hugh Grant, Naomie Harris, Lily Collins get Honors at 20th Annual Hollywood Film Awards                "Manchester by the Sea" leads the Gotham Award nominations                Tom Ford, Marc Platt and Kenneth Lonergan to be Honored at 20th Annual Hollywood Film Awards                Tom Cruise is in his action hero comfort zone with "Jack Reacher: Never Go Back"                "Moonlight" could be A24's big Oscar horse this year                Ewan McGregor steps behind the camera with "American Pastoral"                Hollywood Contenders: A second crack at Golden Globe predictions for 2016                "The Accountant" seeks to help give Ben Affleck another blockbuster                85 countries will be competing for Best Foreign Language Feature nominations at the Oscars        

Netflix splits DVD, streaming services into separate companies

By Sean O’Connell
Hollywoodnews.com: Netflix announced that it is dividing its business model in half, renaming its DVD rental component Qwikster and expanding that side to potentially include video game rentals.

The news was announced by Netflix CEO Reed Hastings, who apologized to customers in an honest and open blog post, stating, “It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming, and the price changes. That was certainly not our intent, and I offer my sincere apology.”

More from Hastings’ informative post:

Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD, plus lots of TV series. We want to advertise the breadth of our incredible DVD offering so that as many people as possible know it still exists, and it is a great option for those who want the huge and comprehensive selection on DVD. DVD by mail may not last forever, but we want it to last as long as possible.

I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We feel we need to focus on rapid improvement as streaming technology and the market evolve, without having to maintain compatibility with our DVD by mail service.

So we realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently. It’s hard for me to write this after over 10 years of mailing DVDs with pride, but we think it is necessary and best: In a few weeks, we will rename our DVD by mail service to “Qwikster.”

As Hastings revealed, there will be no further increases to pricing, which should please subscribers. How about investors, though? The Washington Post says the company’s stock “was down slightly in pre-market trading.”

Follow Hollywood News on Twitter for up-to-date news information.

Hollywood News, Hollywood Awards, Awards, Movies, News, Award News, Breaking News, Entertainment News, Movie News, Music News

About Sean O'Connell

Sean O'Connell is a nationally recognized film critic. His reviews have been published in print ('The Washington Post,' 'USA Today') and online (AMC FilmCritic.com, MSN's Citysearch) since 1996. He's a weekly contributor to several national radio programs. He is a longstanding member of the Broadcast Film Critics Association (BFCA), the Online Film Critics Society (OFCS), and the Southeastern Film Critics View all articles by Sean O'Connell Association (SEFCA).

Follow us

Breaking Hollywood News   


Leave a comment

You must be logged in to post a comment.