Largely, users don’t have to do anything. If you just subscribe to DVDs, you will be moved to a Qwikster account. If you only pay for streaming, you will remain a Netflix user. However, for users who subscribe to both are bound to be a little annoyed. Instead of being able to search one site, you will now have two separate accounts, two separate bills, and most annoyingly – two separate websites to handle. That means two queues to edit and keep track of. Oh did you already watch that on streaming? Sorry, you didn’t take it off your DVD que on qwikster.com. We’re still sending it to you. Sorry you forgot to remove it from both of your queues.

This seems like yet another bungled step in the current odd track of moves Netflix has taken as of late. Luckily, Netflix doesn’t have serious competition, but it almost seems like they are willingly creating an opportunity for one to step up.

I had a feeling this is exactly what Netflix was trying to do when it announced it was separating DVDs from Streaming plans. They realize DVDs are old media. Expensive to ship compared to just moving data, and far less convenient.

I’m not picky. As long as she’s smart, pretty, and sweet, and gentle, and tender, and refined, and lovely, and carefree…

-Sundance Kid

and a night in LA

The question is why the sudden drastic increase? As they are still making a lot of profit, it is hard to say it is greed alone. Instead, I think there are a few reasonable theories.

Development

One theory is that Netflix is going to shift from simply being a content deliverer, to a content producer. In fact, they are already doing this, as they recently bought their first show that will be produced by them alone, and distributed only on Netflix.  Alternatively, they might want to buy content to distribute exclusively on Netflix, eliminating competition from Hulu, iTunes, YouTube and others.

You can see evidence of this already. See this and this.

With other content distributors seeing them more and more as real competition, it makes sense to produce your own content in case a movie studio chooses to not give you a deal. Further, if the content is compelling, Netflix could be the next HBO, convincing people to pay just to watch the original content.

And they just recently added Mad Men streaming. This all costs money to purchase rights for.

Kill DVDs

Another theory making the rounds is that Netflix is looking ahead to the future. In a very Apple like move, they realize that physical media is dead, so they are making it less desirable to receive it.

It costs more each year for Netflix to ship those discs to your house. They also have to buy the physical copies. Streaming on the other hand, costs little in physical media after the rights are acquired. Netflix has done a great job getting their software and brand on blu-ray players, TVs, cell phones, and video game consoles everywhere. They are invested in having you be able to access their movies on almost any device. Now, they want to focus on that shift.

The CEO even admitted as such:

The reason we felt confident about doing it now is the strength of streaming-only. We got convinced can that we can thrive on streaming-only, the best timing was now.

I believe the company also realizes that they if they want growth outside of the US, streaming is the way to go. Cheap, reliable, expedient mail isn’t available everywhere. But if you can get internet access, you are a potential customer.

Accounting

Finally, there is a theory floating that is a little more interesting. Netflix has to make deals for each film they put on Netflix. While the terms of these contracts aren’t known, it can be speculated based on how these deals are made in other media that studios are charging per potential viewer. Therefore, the more Netflix streaming users, the more Netflix has to pay per film.

Under the old plan, everyone who got a DVD got streaming in addition. I am positive many people who watch the DVDs rarely, if ever, stream. Many people use the DVDs and aren’t even aware of the streaming option. But, Netflix is paying for their potential eyeballs. By offering an option to switch to just DVDs, they can make sure they are only counting real streaming users.

In my opinion, Hollywood should be mighty grateful for Netflix. I believe that easy access to content discourages piracy. iTunes gave an easy alternative to searching for MP3s that might have viruses, be incorrect links, etc. Netflix is a great tool in the fight against illegal downloads.

Hopefully, the studios have taken notes of what happened to the music industry and aren’t destined to make the same mistakes. Even if they charge a little less per viewer, that is income that won’t be there if you drive users to illicit methods. The problem of course is that the value of the media is being lowered. Again, using an iTunes analogy, everyone now would never pay more than .99c for a song. You have reduced the value of a song tremendously. Hollywood is scared to death movies will go down this path when people are used to paying 9.99 a month for unlimited movies. Will be interesting to see where this lands.

“Why do you smile that way? l never know if you’re judging me,
absolving me or mocking me.”

IWDRM

American culture is sliced up in so many different ways that what’s popular with one group can go virtually unnoticed by another. Univision, for example, is watched by millions of Latinos in the U.S., but millions of other Americans couldn’t tell you what channel it’s on.

Think about it like this. Back when your parents were children they had a choice of 3 television channels. They watched what was on. Because of this many people watched the same things, and had the same “experiences”. Music was delivered via radio stations that decided what to play. Everyone grew up listening to the same music.

Fast forward to today. I can find a youtube channel or blog that is dedicated to my oddest hobby. I can find indie bands producing a specific sound that refuses to fit into any category and probably hasn’t been heard by anyone in my social circle.

My friend described this phenomenon as having fewer grand scale shared culture, but a deeper connection with those who do share our common interests. You might have only one person in your group of friends who likes the same web show, but you two probably know all the catchphrases.

What impact is this having on our society? Do we feel less kinship with greater society because we don’t feel like we share anything with our neighbors? Does this encourage increasingly isolated interests?

In such a fractured society, is America at risk of losing a common culture? Rosenberg of The Atlantic says maybe. But she also thinks it will make us appreciate the mass cultural events that do occur even more, like the end of the Harry Potter series or Michael Jackson’s death.

So, alot of what I do involves reading about what music is included in a film. You might not know this, but every piece of music you hear is tracked, licensed in some way, and titled. Even the scary tones during the fright scene in that scary movie (think the dun-dun in Jaws), or the dreamy, floaty string piece when the two leads kiss for the first time in that romance comedy.

A lot of work goes into composing, recording and working out the legalities of those songs. And they all have titles.

This has ruined the movie watching experience for me. Now, when I watch a movie, I’m paying attention to the music too much. I think, “oh thats an original piece”, or “oh I bet they paid a ton to get that recording”. I even try to figure out the titles of the score pieces. “I would title this one ‘Dan going to the grocery store’.”

A permanent employee warned me I should definitely get into the industry. He said he has suffered the same experience, so now you might as well at least have something to show for why you can’t just sit and enjoy a film anymore.

So, in the future if you happen to watch a movie with me and I constantly bug you about something in the plot, or to repeat what that person just said- I apologize. I was off in hollywoodland.