Netflix changes
So, about a month ago there was an interesting article in American Libraries about the future of libraries. You can read it here http://americanlibrariesmagazine.org/features/09052011/avoiding-path-obsolence but it was about how libraries can avoid becoming obsolete. The author urged librarians to look to the Netflix model of providing a seamless interface between print and online content. It really got me thinking about how successful they were and about how libraries can begin to copy that method. We are a LONG way away.
Well, about 11 days after the article was published Netflix announced that they were leaving that model and splitting out their services again so that "Netflix" would be the name and website for online streaming videos and a new website and service would be launched with the name "Quikster" for those wanting to snail-mail-order DVDs.
I was so baffled by this decision. They were doing something so right, that really all libraries need to think about modeling, why would they dump it and change their business model? I know one reason might have been money. Since they had begun charging separately for streaming video, which seemed to take so many people by angry surprise, maybe they felt the need to justify this change by making them not just separate service, but separate websites. I have to say, I was not at all surprised by the increase in Netflix charges--and those of you doing the free Amazon streaming with you Amazon Prime subscription, I think your day is coming as well. It is a great business model to give something away for free, get people hooked on it, then charge them.
However, separating the services would seem to me to lose more customers than gain more. I would think people would be more likely to subscribe to both if they are both in one place. If they have to go to different website and have different queues to get items, I would think they'd just get one of the two services. It is the integration of streaming and physical DVDs that was so brilliant and gained them so many customers.
Well, now it seems Netflix is reversing that decision and keeping it all together, for at least another quarter. http://mediadecoder.blogs.nytimes.com/2011/10/10/netflix-abandons-plan-to-rent-dvds-on-qwikster/
It'll be interesting to see what the future holds for Netflix and for libraries.
Well, about 11 days after the article was published Netflix announced that they were leaving that model and splitting out their services again so that "Netflix" would be the name and website for online streaming videos and a new website and service would be launched with the name "Quikster" for those wanting to snail-mail-order DVDs.
I was so baffled by this decision. They were doing something so right, that really all libraries need to think about modeling, why would they dump it and change their business model? I know one reason might have been money. Since they had begun charging separately for streaming video, which seemed to take so many people by angry surprise, maybe they felt the need to justify this change by making them not just separate service, but separate websites. I have to say, I was not at all surprised by the increase in Netflix charges--and those of you doing the free Amazon streaming with you Amazon Prime subscription, I think your day is coming as well. It is a great business model to give something away for free, get people hooked on it, then charge them.
However, separating the services would seem to me to lose more customers than gain more. I would think people would be more likely to subscribe to both if they are both in one place. If they have to go to different website and have different queues to get items, I would think they'd just get one of the two services. It is the integration of streaming and physical DVDs that was so brilliant and gained them so many customers.
Well, now it seems Netflix is reversing that decision and keeping it all together, for at least another quarter. http://mediadecoder.blogs.nytimes.com/2011/10/10/netflix-abandons-plan-to-rent-dvds-on-qwikster/
It'll be interesting to see what the future holds for Netflix and for libraries.