Netflix is an American provider of DVDs and live streaming movies over the online web. They also service Canada and Mexico. The company introduced an interesting concept to the world of rental movies of media when they began using the postal service to apply their business ideas. Instead of driving down to the local movie store to rent a film that you wanted to see, Netflix would instead send it straight to your house in the mail – and you would return it as soon as you were ready to send it back. This membership was done online for a monthly fee of 7.99 a month. The price was pretty good, and you could watch as many movies as you wanted. It was a convenient way to watch the films that you loved.

Competition changes everything, and so does a bad economy. Netflix, whose business was booming just yesterday, has found that things look a lot different today. The coasts of sending DVDs in the mail are going up, and people are looking for ways to get their hands on new releases much faster than they can arrive physically in the mail. To make matters worse for the movie renting mogul, other companies like Blockbuster began reverting to online membership and rental shipping, as well. Itunes has begun to sell downloadable movies and television shows. Competition changed the name of the game, and to cope, Netflix made a drastic move: they significantly raised their prices.

The plan was to promote the growth of streaming online movies. Who wants to rent DVDs anymore when you can download movies straight off the internet? It’s easy, fast and extremely convenient. You don’t have to wait for any movie to be delivered in the mail and it comes at a much lower cost for the corporation – no shipping, no excess fees. It’s much more practical. However, in order to drive people to their online streaming service, they raised the prices. Bad move. The subscription rates for Netflix have been dropping dramatically. They have lost a lot of money. Why? People cannot afford to pay more money for things like DVDs in an economy that is already robbing them of both their houses and businesses.

Netflix’s next plan is to split the company into two separate entities. The first entity will be called Qwikster, and it will take over the DVD mailing service. It will be a completely different site and access point for this feature. Netflix itself will revert to completely online streaming services. In other words, Qwikster is just a prelude to the eradication of DVD rentals altogether. Downloadable movies and video games are coming quickly. They are more convenient for customers to use, massively cheaper for corporations to produce and they benefit everybody. Qwikster will eventually close out and allow the Netflix online streaming service to exist on its own. It won’t be long until other movie companies follow in their footsteps. Blockbuster may be next, although it’s difficult to predict.

About the Author:

Natasha Williams is a car insurance agent in Whitby, as well as an avid reader.  To quickly compare auto insurance quotes from competing insurers visit Kanetix.  Canada’s premier car insurance comparison service can collect the insurance quotes you need, and allow you to make a practical decision on your insurance provider.

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