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They need to retain the integrated service they now have and simply phase out the physical DVD's as soon as the streaming version is available, eventually it will become all streaming, For those that are satisfied with all streaming now, they could be offered a discounted price. Qwikster will soon become obsolete, so why bother creating it in the first place? $12 per month for both and $8 per month for streaming only would be much more palatable to the consumers. Forget the $8 + $8 = $16 separate company idea, and listen to the backlash.
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Shane Conder's profile photo
 
I'm not sure. I keep hearing about people who've done exactly what we've done: dropped the streaming service that a) has no selection to speak of (especially now that Starz is dropping them) b) has terrible video quality compared to a bluray c) has terrible audio quality compared to a bluray and d) has absolutely no reliability that your 50 Megabit pipe can stream a 5 Megabit HD movie when you want. (Even when it does degrade the quality, it's not guaranteed to work.) And a movie available by streaming today is no guarantee it will be available tomorrow, so just dropping the disk when the streaming version is available can't work at the moment. (It's a good idea, but the licensing just doesn't allow for it yet.)

They gave us a great "out" to dump the streaming service and save money. So we did. Now we're back to being happy with disks, which we've been doing with Netflix since 2000 -- 11 years now.

I love Netflix -- for the disk rentals. I really don't think movie streaming is going to get reliable enough (both network bandwidth and selection) for several more years. There's a lot of money to be made on disks.

I also think it's important to realize that, in the US, wired broadband penetration is only at 26% (as of 2010). Those 3 out of every 4 people require disks. There's a reason "redbox" is doing so well.

(Note: I use Hulu and Amazon for streaming now. Mostly Hulu, for TV shows. Even Amazon's streaming is very limited. Most movie watching is pure disk based.)
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