Qwikster: There, That Fixed It

September 19, 2011 by Gabe | [mmd] |

I'm sure most Netflix subscribers have now received the email from Netflix announcing their name change. Well, they are actually keeping "Netflix" for their streaming service and naming their DVD service "Qwikster". These kind of moves always strike me as a bit strange. I'm not sure the name is ever the root problem. In this case, I think the name change adds to the confusion. The average Netflix user that I know (meaning non-tech nerd) see streaming as an extension of the DVD service. They join Netflix for the DVD's and slowly grow to depend on the streaming service for instant gratification. Now that the service is split by name and billing, I predict many people choosing more wisely and looking more carefully at alternatives like Amazon and Hulu. Qwikster is now competing against Netflix. They are now a newcomer to the market that is competing with the incumbents. My friends and family complained loudly about the price increase. They are now being told some crazy story that Netflix DVD's are changing to a new service called Qwikster with separate billing and potentially. I'm sure I will receive several phone calls and emails asking what the heck is going on. I think Netflix has assumed too much about their dominant role. They own DVD's by mail. It's still a close race for streaming though. Their competitive edge for streaming was their integrated DVD service and they spun it off too soon.