Following the company's announcement of the split of the streaming and DVD services into two separate companies, it seems more users will be heading for the exits.
According to TheStreet's poll, 43.8% will cancel one of the two services as a result, while 42% will cancel their Netflix subscription altogether. Only 14.2% of voters said the split-up makes no difference to them.
Netflix subscribers were already irate following a 60% price hike to the most popular DVD-by-mail and unlimited streaming video package that went into effect earlier this month.The biggest complaint from TheStreet readers is that the company, with Reed Hastings at the helm, is "out of touch" with consumers and investors. "Netflix has obviously lost touch with its customer base," one reader said. "I was with them for six years and dropped them as soon as I was informed of their greed-driven plan to split their rentals from their Web-based streaming service. So Netflix get a clue!!! I joined your service because you offered a great service at a great price. You no longer offer that, so goodbye." The key to any consumer company is convenience, and Netflix's decision to split up the DVD-by-mail service into Qwikster while leaving the streaming service under the Netflix banner, complicates the user experience. Netflix subscribers call the queue one of the "most powerful customer retention features." Now as two separate companies the queues won't be integrated. Hybrid subscribers will need to click back and forth between the two sites to see which titles are available streaming and which are available by DVD in order to create their queues. "The Netflix queue has been a strong customer retention feature. Because they have been in 'control' of the complete viewing and rating history of their loyal subscribers', this has prevented customers from readily adopting streaming services from Amazon, Apple, and others," another reader said. Netflix's streaming service has also been severely critiqued, as subscribers complain that they are paying more for less content following the stalled discussions with Liberty Starz to renew its streaming content deal. As a result, Starz content will be removed from Netflix in February if a deal isn't reached.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV