Poor old Netflix. They just can’t seem to recover public favor after the changes they made to their pricing and policies two months ago enraged their user base, and now, with the repackaging of their mailed DVD rental service as a separate entity called “Qwikster”, they only seem to have further alienated the customers who once raved about their offerings. 23,000 people so far have commented on Netflix CEO Reed Hastings’ blog post announcing the “launch” of Qwikster, and none of them sound very happy.
So, why is everybody so angry with Netflix?
Well, Netflix increased the prices of its rental services a couple of months back, which served to annoy users who are essentially already paying for something they know they can get for free, if not legally. In order to address this, they decided to split out the DVD mail rental service as a separate offering, complete with its own separate web ordering service, calling it Qwikster. The reasoning is that by running the two separate services independently, the pricing can be controlled under separate models. (more…)