Netflix Apology Letter

The Riddler · September 19, 2011, 07:28:23 PM

[spoiler]

Quote
Dear Rob,

I messed up. I owe you an explanation.

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. Let me explain what we are doing.

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). So we moved quickly into streaming, but I should have personally given you a full explanation of why we are splitting the services and thereby increasing prices. It wouldn't have changed the price increase, but it would have been the right thing to do.

So here is what we are doing and why.

Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD. DVD is a great option for those who want the huge and comprehensive selection of movies.

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 need to focus on rapid improvement as streaming technology and the market evolves, without maintaining compatibility with our DVD by mail service.

So we realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently.

It's hard to write this after over 10 years of mailing DVDs with pride, but we think it is necessary: In a few weeks, we will rename our DVD by mail service to "Qwikster". We chose the name Qwikster because it refers to quick delivery. We will keep the name "Netflix" for streaming.

Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, but now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated.

There are no pricing changes (we're done with that!). If you subscribe to both services you will have two entries on your credit card statement, one for Qwikster and one for Netflix. The total will be the same as your current charges. We will let you know in a few weeks when the Qwikster.com website is up and ready.

For me the Netflix red envelope has always been a source of joy. The new envelope is still that lovely red, but now it will have a Qwikster logo. I know that logo will grow on me over time, but still, it is hard. I imagine it will be similar for many of you.

I want to acknowledge and thank you for sticking with us, and to apologize again to those members, both current and former, who felt we treated them thoughtlessly.

Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions.

Respectfully yours,

-Reed Hastings, Co-Founder and CEO, Netflix

p.s. I have a slightly longer explanation along with a video posted on our blog, where you can also post comments.

[/spoiler]
Dear Reed Hastings,
I don't want your intercourse ing apology email that begins with "Dear Rob" as if you personalized it towards me. I want the money you took from me without proper warning.

Custom · September 19, 2011, 07:30:03 PM

you're just having big money problems aren't you

The Riddler · September 19, 2011, 07:31:48 PM

Quote from: Custom on September 19, 2011, 07:30:03 PM
you're just having big money problems aren't you

Kinda, but this email just bothered me.

Flying Chickens · September 19, 2011, 07:58:27 PM

He was courteous and friendly.

Burn that MotherFucker at the cock-sucking stake.

… · September 19, 2011, 08:04:39 PM

What money did they take? I assume you already had the service, unless you had it cancelled and then they just started you back up again

Matt · September 19, 2011, 09:10:29 PM

I have Netflix and I ain't even mad, purely because I only use Netflix to stream(plus price increase doesn't bother me as it isn't drastic). On a brighter side, this could end up with Netflix gaining a larger selection of movies. Whether it be big name titles from recent years or old.

The Riddler · September 19, 2011, 09:23:43 PM

To those who don't know: Netflix about doubled their prices without any kind of real warning. The reason being is that they've separated their DVD Delivery service from their Streaming services.

So when everyone got their bill this month, instead of the usual price, we all saw $17 and change listed. Most of us didn't know it was coming. Netflix took a HUGE hit in customers due to it, and this is how they're reaching out. Apology letters.

I've never used the DVD delivery service, I only use the streaming. I need to cancel it now, but I should have been warned properly before they changed my bill.

… · September 19, 2011, 09:30:37 PM

Oh, they raised their prices too, that sucks.

Doodle · September 20, 2011, 06:39:55 AM

So, you were being charged for two of their services?

Zero · September 20, 2011, 07:05:03 AM

Quote from: Riddler21 on September 19, 2011, 09:23:43 PM
To those who don't know: Netflix about doubled their prices without any kind of real warning. The reason being is that they've separated their DVD Delivery service from their Streaming services.

So when everyone got their bill this month, instead of the usual price, we all saw $17 and change listed. Most of us didn't know it was coming. Netflix took a HUGE hit in customers due to it, and this is how they're reaching out. Apology letters.

I've never used the DVD delivery service, I only use the streaming. I need to cancel it now, but I should have been warned properly before they changed my bill.

Holy intercourse I need to cancel my poop

Spud · September 20, 2011, 08:03:58 AM

I was going to say how I was going to rethink subscribing again next month, but it looks like the price is still the same in Canada because we don't have the delivery service.

The Riddler · September 20, 2011, 08:52:02 AM

Quote from: Doodle on September 20, 2011, 06:39:55 AM
So, you were being charged for two of their services?

Yes.

CoasterKid93 · September 20, 2011, 06:45:37 PM

Quote from: Riddler21 on September 19, 2011, 07:28:23 PM
[spoiler][/spoiler]
Dear Reed Hastings,
I don't want your intercourse ing apology email that begins with "Dear Rob" as if you personalized it towards me. I want the money you took from me without proper warning.

Go get a job.

Matt · September 20, 2011, 07:04:21 PM

Quote from: CoasterKid93 on September 20, 2011, 06:45:37 PM
Go get a job.

Rob get a job? Ha.

Super · September 20, 2011, 07:56:50 PM

I use Redbox for DVDs.

There was warning, by the way.