It will be interesting to see what happens to GameFly after this. Will they attempt to quicken their delivery times to compete with Netflix's fast turnaround on DVDs (assuming games will be just as fast)? I also think Qwikster's price is cheaper than GameFly, so maybe they will lower the price and even undercut Qwikster.

I don't see the point of Netflix doing this. I'm glad for game support, but why have two websites and different services for dvd and streaming. I feel that Qwikster is doomed to fail as the name will confuse people and this action will further alienate the customers they have.

I'd go so far as to say that Qwikster is intentionally set up to fail. Netflix wants to phase out that entire business model in favor of streaming content. That's really the only explanation to the plethora of questionable decisions they've made this year.

well the name netflix has Flix in the name implying movies, but quickster doesn't. They want to phase out movies and get into games. Its staying diverse as a company. Shouldn't put all the eggs in one basket. They are being competed on all fronts, so they have to find a way to get revenue while their market share shrinks.  There's no point renting physical movies, unless you're old and you're behind the times anyways, but you still need physical games for a good 7 years.

Anybody else think that the Blockbuster commercial rant on netflix is just idiotic? Blockbuster has dvds and games sure, but Netflix... it has instant play. That ends the argument right there. Even if Netflix was NOT getting games put in soon, the Instant play on any major video game system, computer, Nintendo 3ds, and who knows what just blows Blockbuster away. I mean I watch anime every morning on my 3ds and it just frikkin rocks. Anyone who owns a 3ds and has netflix knows this. I really think Blockbuster will be eating their words soon after the video game rentals start. Depending on what exactly Netflix does with Quickster that is.

But Netflix is about to lose a HUGE chunk of their streaming library when their contract with Starz ends.

Perm, Netflix has no intention of ever getting out of movies. Their whole intention was to move out of the mail business once it becomes plausible. The video game deal was hastily thrown together once tons of people started canceling their memberships due to the recent price hike (even they admitted that more people canceled then they expected) and the stock dropping 52% as a result. They were actually doing very well before this whole debacle, and their is no point in renting digital movies until they start including all of the bonus features that physical movies have. If there was a digital version of Netflix (where you pay a monthly fee and can as many movies and TV shows you want, with the same selection as Netflix and all of the features physical discs have, I might consider it). Their Instant Streaming service is extremely tiny (like 10% of their total library), titles lack any bonus features, and from a personal stand-point their are many titles and genres I like that are not included. If Netflix could get 100% of their titles streaming, they would make a lot more money since I think more people would pick that option (which saves them money from shipping) and probably get more people to subscribe. I have been thinking about canceling my membership since I haven't even used it for a month, I might change my mind if their video game selection is as good as Gamefly's and the option is like $3 extra.

But if studios gave Netflix subscribers everything on the disc for every movie they have available, then who would ever buy DVD?

That is why I don't think digital rental services will ever become the standard. Hell, it already pisses me off when I rent the physical disc and it's a "rental disc" (meaning just the movie, and none of the features on the disc you buy).

The best part of when I was with Gamefly was Handheld game rentals and there excellent keep it pricing.  Which I don't think Netflix is doing either.

If anyone things that Netflix will ever be streaming the additional content then your dreaming.  That content would cost more for Netflix then it would be worth because it would be considered different then the movie in the eyes of the studios.

Blockbuster has an On-Demand service, so they can compete (barely) with Netflix on that front. Also, while Netflix is losing Starz, they just signed Dreamworks and are rumored to be getting close to inking other major deals.

Anyway, I think that splitting the two services may have been a good idea for Netflix anyway. The timing was aweful, however. Starz got too gready and wouldn't settle on a price to renew. The only way Netflix could keep up was to raise prices. Then separating DVD and Streaming prices without separating the businesses was a dumb idea. They should've done it the other way around, the transition would've been easier.

Honestly, I'm down with the idea of Qwikster buying GameFly. It'd be the library (and consumers) plus the superior supply chain. It'd be a win-win for everyone involved. Even if your GameFly goes up two bucks, you'd probably be able to get movies with it too.

DreamWorks does not make up for Starz though. For one, not all of DW library will be available right away (the deal kicks-in in 2013). Starz has about 1000 titles on Neflix streaming (about 3% of the total streaming library). I am happy they will get DreamWorks, it just stings that most of my favorite Instant Streaming titles are from Starz. My next bill date is October 3, though I don't expect Netflix to announce details on game rentals before then. Wondering if I should pay for another month to see.

Netflix for me is pretty much all about the TV shows, so losing Starz doesn't really affect me. I was somewhat interested in that new Kelsey Grammer show, though (that's Starz, right? All the non-HBO premium channels kind of run together for me).

Starz only got Netflix (all?) Sony and (most?) Disney movies. I've heard they're working on HBO (though the Dreamworks deal may hurt that) and a few others. Landing HBO would also net Cinnemax, which would be 1000x better (aprox.) than Starz. That'd also get them back some of the Sony and Disney movies.

If you really liked the Starz content, you could hold off until January since that contract ends in February, IIRC. By then, Netflix's make or break time will have made or broken it. Not just for you, but for all of us.

HBO has flat out said that they are not going to do streaming of any kind that isn't tied to there premier cable channel. 

Nothing is stopping Netflix from going directly to Sony and Disney to ink a deal for streaming rights to there content.  Which getting Disney with the right contract would open up a rather huge library of content.  Disney has much much more than just movies.

From what I've read, Disney & Sony wanted Starz to stop streaming it's content to Netflix.
And the reason that Starz is citing their streaming contact with Netflix is because their own subs are down and they need to strengthen their brand recognition.

I also read that the Dreamworks deal was just Dreamworks Animation, not the Dreamworks as a whole since they split the divisions a while back.

TJ Spyke you misread my post, getting out of movies ^By mail, i would hope that was implied since they're splitting their brand.

and as a whole the whole movie industry wants there to be an incentive to buy, thats why rentals have gimped dvd versions. Notice that when you get most studio movies out of red box that they come without special features. The studios want you to purchase the dvds so you can get special features, they also still sell new dvds at $20 which is ridiculous.