Challenging times for Netflix as it hives off DVD biz as Qwikster

MUMBAI: Netflix, the new challenger to old entertainment houses, is suddenly finding its business under attack from dropping subscribers, opposition from Hollywood content suppliers and a wobbly stock price movement.

The video rental company has hived off its DVD service to a separate website called Qwikster, while instant streaming of television shows and movies will continue with Netflix.

Netflix chief executive officer Reed Hastings said in a blog post that Netflix was changing the name of its DVD-by-mail business to Qwikster. This brand will also offer video games.

The move is significant as Hastings had earlier stated that the future lies in streaming. Some analysts conclude that Hastings could be preparing to sell the DVD unit while sticking to the higher-margin streaming business.

Netfllix, however, has seen a dramatic slowdown in subscribers after it increased its price to as high as 60 per cent, or $6 a month, for streaming and DVD rental service in combine. Customers are looking at cheaper options such as Coinstar Inc‘s Redbox kiosk.

Netflix has also been hurt by its failure to rope in movie-content provider Starz. The price hike has led customers to feel that they are being asked to pay for more at a time when the content is shrinking. Liberty Media‘s Starz has rights to popular titles like "Tangled" and "The Karate Kid" from Disney and Sony; the collapse of talks means it won‘t let Netflix stream those films when it expires in February.

Netflix will have access to a lone major studio, Paramount Pictures, for recent releases.

Competition in web video is rising from, Google Inc and Apple Inc. Blockbuster, now owned by Dish Network, is also readying to unveil plans for a streaming service on Friday.

Latest Reads
Livestreaming App SWOO sees momentum in India; Launches Trivia Format in India

SWOO, a leading global livestreaming platform established in Middle East, today announced the launch of its SWOO TRIVIA SHOW – a celebrity hosted live video streaming game show for Indians. SWOO is a user friendly, engaging and feature-rich live broadcasting app available across Android/ iOS/ Web...

Technology Software Applications
TiVo exits STB business

MUMBAI: TiVo is exiting the manufacturing, sales and distribution of set-top boxes to a yet-undisclosed third party, the company has said.

Technology Hardware Set-top Boxes
IET India IoT Panel joins hands with exhibitions india group for the 3rd edition of IoT india congress

IoT India Congress is India’s Platform of Platforms for the Internet of Things conceptualized by IET India IoT Panel, a think tank constituted by the Institution of Engineering and Technology (IET) India. The 3rd edition of IoT India Congress will be hosted in collaboration with India’s leading...

Technology Software Firmware
Tata Elxsi's Automation suite adopted by pan-European Media and Telecommunications Company

Tata Elxsi, a global design and technology services company, announced the licensing of its integrated test automation and monitoring suite ‘FalconEye’ to a pan-European media and telecommunications company for OTT automation and improving streaming performance.

Technology Software Firmware
Verimatrix recognized for contributions to latin american Pay-TV market with PRODU award win at NAB Show

LAS VEGAS: Verimatrix, a specialist in securing and enhancing revenue for network-connected devices and services, has received the PRODU Award for Best Pay-TV Technology Contribution on behalf of its MultiRights™ OTT solution. MultiRights helps service providers effectively navigate the modern OTT...

Technology Software Firmware
Amagi debuts machine-learning powered content-preparation suite

Amagi, a cloud-based technology provider for media processing, has launched Tornado, a machine learning-based content preparation service that enables TV networks and content owners to scale their operations and accelerate broadcast workflows.

Technology Hardware Components
Sharp and TiVo extend interactive program guide deal to power content Discovery across entertainment devices

MUMBAI: TiVo Corporation (NASDAQ: TIVO), a global leader in entertainment technology and audience insights, today announced that Sharp Corporation will further utilize TiVo’s G-Guide HTML across Sharp 4K smart TVs and Ultra HD Blu-ray recorders in Japan, TiVo’s G-Guide xD app and remote schedule...

Technology Hardware Components
HARMAN announces Priyanka Chopra as global brand ambassador

HARMAN International, a wholly-owned subsidiary of Samsung Electronics Co., Ltd. focused on connected technologies for automotive, consumer and enterprise markets, today announced that actress, singer, producer and philanthropist Priyanka Chopra has been named a global brand ambassador for the...

Technology Hardware Components
Etere HSM expands interoperability with Grass Valley

Etere HSM features an integration with Grass Valley that improves interoperability, streamlines connectivity, enables faster content processing and includes deep archive capabilities. Etere introduces a new integration layer between Etere Hierarchical Storage Management (HSM) and Grass Valley...

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories