Netflix announced Monday that they're canceling their plans to split into two brands, Netflix for streaming and Qwikster for DVDs by mail, though there will still be an internal separation.
"Saturday Night Live" had a Netflix sketch planned that got cut for time, but they put it up online. It takes a shot at Netflix's public apologies, particularly this video. While the show elevates the situation for comedic effect, the setup isn't too far off from reality. SNL's Jason Sudeikis, playing Netflix CEO Reed Hastings, summarized what most see as Netflix's problems. "We raised our rates from $10 a month to $16 a month, but that's not all. We knew you loved Netflix because it was an easy to use website for all your movie needs. To make it better, we split it into two separate, slightly more confusing sites."
Movie studios are between a rock and a hard place. The DVD market continues to fall, while consumers have yet to jump on board with digital purchasing.
Most movies this holiday season are going to be sold in "combo packs," where buyers get a Blu-Ray disc and a digital file they register online allowing for online cloud storage of their movies, according to the Hollywood Reporter. Most movie companies are behind a system called UltraViolet, though Disney is using their own system, Keychest.
After Netflix recently changed their pricing plans, raising the cost of getting both streaming and DVDs in the mail, many users reacted with anger. Could this be an opportunity for the movie companies to get consumers more interested in purchasing films instead of renting online? Netflix says that angry customers are going to mean a cut in profits, and they also face negotiations with various companies to maintain and expand their supply of streaming movies and other content.