4. Do you still have low brand equity? A name change can work if your company still has low brand equity-that is, the estimated monetary value added to your brand because people know who you are. On the other hand, if your local brand equity has grown greatly, a name change could end up costing more than it's worth.
SAN FRANCISCO (AP) -- The CEO of Netflix said he was sorry for mishandling a recent price increase that caused customers to cancel the service in droves. But the apology was drowned out by a decision that angered subscribers all over again.
The company will split into two services -- one with an odd new name that offers the familiar discs in red envelopes and another for online streaming of TV shows and movies.
The DVD service will be called Qwikster, a name that is supposed to signify a commitment to fast service but quickly became an object of ridicule Monday on the Internet. The streaming service will keep the Netflix name.
Netflix, which had 24.6 million U.S. subscribers at the end of June and is the nation's largest video subscription service, redefined home entertainment over the past decade with its DVDs by mail. Now it's trying to prepare for the day when watching movies on a disc goes the way of driving to the video store to pick up a VHS tape.
NEW YORK (AP) -- Netflix is trying to boost business by chopping its services into two separate parts. Unfortunately for investors, the company's stock price is what's really been cleaved.
The company that once seemed like it could do no wrong has seen its stock lose half its value in the last two months. Netflix tumbled another 7.4 percent to $143.75 on Monday, on the same day that chief executive Reed Hastings sent an email to Netflix customers, announcing that the DVD-by-mail business that defined the company for much of its history will become a separate, renamed service called Qwikster. Customers who subscribe to both streaming and DVDs will soon see two separate charges on their credit card statements and have to log on to two different websites.
It's a hard landing for a company that made many investors rich while remaking the way that households watch movies. It was only ten months ago that Netflix's success prompted Standard and Poor's to add the company to its S&P 500 index, a broad measure of the stock market that is the basis for most U.S. mutual funds. Since then, Netflix shares have dropped 26 percent. Some analysts now think the stock's best days are behind it, beset by increased competition and its recent corporate blunders.
If anything, the streaming service needs to have more titles available
NEW YORK (CNNMoney) -- Netflix's move to rebrand its DVD-by-mail service as Qwikster sets that business up for a spin-off and underscores Netflix's longtime desire to go all-in on streaming. But it's a high-risk strategy: Streaming video has become a very expensive game -- and Netflix's rivals have much fatter wallets.
Studios now want millions more for the content they're providing, and if Netflix won't pay them what they want, they can take their business to a competing service. Google, Amazon, Microsoft and others are all looking to expand their content catalogs, and each has billions on hand to play with.
Amazon (AMZN, Fortune 500) had $6.4 billion in the bank at the end of its last quarter. Google (GOOG, Fortune 500) held $39.2 billion, Microsoft (MSFT, Fortune 500) had $52.8 billion and Apple (AAPL, Fortune 500) held a whopping $76.2 billion. Even Yahoo (YHOO, Fortune 500) could dive in big if it wanted to: It's got $2.6 billion in its cash coffers.
By comparison, Netflix had just $376 million in cash at the end of the quarter.
The big wildcard right now is Hulu, which is on the block and expected to fetch a sale price in the $1 billion to $2 billion range. All of the big players are circling, drawn to Hulu's catalog of current TV series.
"The Hulu sale could prove a catalyst," Barton Crockett, entertainment analyst at Lazard Capital Markets, wrote in a research note Monday.
A Hulu buyer could potentially score exclusive streaming TV rights from current Hulu owners Disney (DIS, Fortune 500), NBC and Fox, Crockett said. That would block Netflix's ability to ink its own TV deals with those studios.
What I would really like if for the IMDB to start selling downloads like NetFlix does, or for NetFlix to buy IMDB and make every movie and show in the IMDB available for streaming.
Quote:What I would really like if for the IMDB to start selling downloads like NetFlix does, or for NetFlix to buy IMDB and make every movie and show in the IMDB available for streaming.
No way in hell will Amazon.com would sell IMDb.com to what it sees as its direct competitor. Amazon.com has its own streaming business under its Amazon Prime program.
I doubt that to be the case. I hear that Apple wants its own streaming service and since its Apple, they're likely to develop their own service from the ground up.
I tried it a couple of times when I 'rented' a few movies via streaming. The new pricing arrangement is quite reasonable at a one time fee of $79 a year. Plus you get free shipping for most anything you buy at Amazon.
I think only certain titles are offered through the subscription service; you still have to pay to view new releases.
Shipping... buy a book or CD or vacuum cleaner. They mail (ship) the item from their warehouse to your home.