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I just changed to streaming only since my ISP fixed their shit and I can actually use it now. Then I come across this:

Hell hath no fury like a consumer scorned--a fact Netflix is discovering since it restructured its pricing in July. One million consumers have bailed since the restructure, and the company's stock price is falling precipitously.

Netflix released its membership projections for the third quarter, which wraps up at the end of September, on Thursday. According to the numbers, Netflix will be down one million subscribers--24 million, down from 25 million, which is a significant drop of four percent. Most of the losses are members with DVD-only accounts (three million to 2.2 million), but a whopping 200,000 streaming-only members also bolted.

News of the member losses reflects Netflix's stock. When Netflix first announced the restructure in July, its stock was worth almost $300/share. Today, it's selling for less than $160.

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In a post on The Netflix Blog that went up Sunday night, the company's CEO, Reed Hastings, announced that Netflix would split its DVD-by-mail service and its streaming-video service into two companies. The new DVD-only company, called "Qwikster," will be completely separate from the streaming business. Hastings also expressed contrition for the way the company rolled out its recent price hike, which alienated many customers.

Hastings wrote: "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." He went on to announce that Qwikster -- the name is chosen "because it refers to quick delivery" -- is becoming its own entity because " "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."

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Okay, previously I had no problem with the price increase. I use both services about evenly. However, I do think effectively splitting them is the wrong choice. One of the nice things about Netflix is that when I'm looking for a DVD, it'll tell me if it's streaming also. However, if the seperate site doesn't at least have a redirect for such titles, then I'm going to find myself ordering dvds I have no need to waste my time ordering. Really, this is looking more annoying than anything else.

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Hmm. Not sure I how I feel about this. I'm not OUTRAGED~!, but I don't think I want to have two different subscriptions.

Also, if you go to the Qwikster site, an Xbox 360 controller is prominently displayed. I wonder if they're jumping into the video game rental business, too.

EDIT: Yup, they are.

Edited by The Master
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