Netflix No Longer Wants Anything To Do With Games

Netflix No Longer Wants Anything To Do With Games

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Despite its plans a few months ago, Netflix no longer has any desire to add games to its DVD-by-mail program.

Remember how, a few months ago, Netflix announced plans to spin off its DVD-by-mail rental service into a separate entity called Qwickster that would allow premiere customers to rent games, too? You know, before the company's stock prices dropped like an obese seagull, millions of customers canceled their mail accounts (or switched to streaming-only plans), and the whole concept of Qwickster was unceremoniously killed off? Well, in spite of this, a lot people were hoping that games might still come to Netflix. However, that possibility has officially been nixed.

The fact that Netflix was no longer planning to add games to its mailing lineup was only one of several interesting facts revealed during an earnings call with CEO Reed Hastings. The man also explained that DVD-by-mail is expected to become less important to Netflix's business plan while streaming will continue to grow (although the profit margins for online streaming are much lower "due to the high costs of content for streaming"). Additionally, the last quarter saw the company lose 2.76 million DVD subscribers, and streaming users now outnumber those still receiving DVDs by more than 2 to 1.

Undoubtedly, groups that do rent physical copies of games - like Redbox and GameFly - will be relieved to see that they don't have to worry about this potential competition. Still, if Netflix hadn't deflated so rapidly, one has to wonder if things would've worked out differently.

Source: Industry Gamers via GamePolitics

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If they aren't planning on doing Video Game rentals in the UK, then I will definately be sticking with Lovefilm and you'd think when starting up in the market over here and directly competing with Lovefilm that they would at least try and do everything they do but for better value

They're still morons in my book. Their streaming selection is garbage compared to their DVD selection. But, maybe when they close their warehouses I can pick up a bunch of used DVDs for low to no cost.

*sigh* Crap and here I thought I was going to finally get game rentals again. The only store in town that sold rentals (where I was working in fact -_-) closed down a couple of years ago so I have to resort to redbox for game rentals and 2 bucks a day for a game is just TOO expensive for a rental.

I'd like to try gamefly but that seems rather expensive as well, seeming to be more for a person who wants to rent it and play it to completion compared to just using it for trial-periods to know if you want to buy it.

What to do, what to do...

Poor Netflix. It's not often you see a company fall so far so fast. Splitting the DVD service from the streaming service was probably the single worst thing they could have done. Neither of those is worth a stand alone purchase but when they were together in one bundle it was a great deal and well worth the money you spent.

-Read...

"We realized that dealing with physical media we have to pay for logistics, production and other extraneous related costs, whereas it costs us essentially nothing to produce via digital distribution. So of course we are going to eliminate something eating needlessly into our profit margins. Also people started getting real scared when we started talking about change, so perhaps it is best to not provoke this overgrown herd of dumb panicky animals."

If netflix thought they could stand a snowballs chance in hell at going up against steam for digital distribution of games, they would be all over it. Otherwise it simply becomes a wasted expenditure.

But Meh, I have never had any sort of interest in Netflix as an organization. It always seemed too limited because most of what they have done, was a service that was provided elsewhere. If I was going to have any interest in that sort of model I would look at blockbuster that has physical/streaming tv and movie, the ability to offer console games much like what gamefly does, plus it can be tied in with Dish network to make the program even more cost effective. Id gladly give over nonsensical vanity features like streaming to 360, PS3, wii, smartphones, ect in favor of giving more useful features LIKE the ability to rent games instead of movies/series.

Anyway, im sure people with netflix subscriptions would prolly love this feature, so for them this is a regretable set of circumstances... but from an economic point of view, they are making the decision that makes the most sense to ensure they maximize the most money for the least amount invested.

I got a free month of Lovefilm and thought the Game rental Service was great, I cancelled it before it was up for renewal but I might go back to it.

I was waiting to see what Netflix could do, but that won't be happening it seems!

vansau:
Still, if Netflix hadn't deflated so rapidly, one has to wonder if things would've worked out differently.

Yes. If things had worked out differently, they would have worked out differently.

Redbox has a pretty limited selection, but at least it's local and has some nice recent games. Gamefly is way too slow, which is why I prefer online mail-in game rentals from Blockbuster since they're much faster (and even faster if you can FIND a brick and mortar Blockbuster to instantly return a game and get the next game in queue to be sent).

Think I would have gone with Netflix if they had done the game rentals though :/

They were a bit late to the party. I mean Gamefly had established a good customer base by then. I didn't think that Netflix would be able to keep its own game rental business up and running.

The future is streaming, Netflix won't be able to do a thing with games when that future comes, so games by mail would also only be a short term investment, kinda pointless. Netflix basically needs to accept that they don't run the world when it comes to media, streaming is their future and it doesn't matter how big you are, if you come to the fight late and unprepared, you lose.

Quiwkster really emptied your pockets huh Netflix? A reliable, fast gaming service might have been very profitable. At least among gamers who still value physical copies.

Redlin5:
Quiwkster really emptied your pockets huh Netflix? A reliable, fast gaming service might have been very profitable. At least among gamers who still value physical copies.

Renting games =/= physical copies

Renting games = digital distribution

Crono1973:

Redlin5:
Quiwkster really emptied your pockets huh Netflix? A reliable, fast gaming service might have been very profitable. At least among gamers who still value physical copies.

Renting games =/= physical copies

Renting games = digital distribution

Wasn't it going to mail the discs to my house? I dunno, I would have dug that.

Redlin5:

Crono1973:

Redlin5:
Quiwkster really emptied your pockets huh Netflix? A reliable, fast gaming service might have been very profitable. At least among gamers who still value physical copies.

Renting games =/= physical copies

Renting games = digital distribution

Wasn't it going to mail the discs to my house? I dunno, I would have dug that.

Yes, like Gamefly but renting is akin to digital distribution as you don't ever own the game.

People who love physical copies are not the same people who prefer to rent.

Speaking of, Gamefly took over D2D and apparently alot of people lost some games, some permanently (that's a lawsuit waiting to happen). That can happen to any digital distribution service, which is why it is akin to rental. Did escapist report on that or was the N word in Minecraft more important.

 

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