I'm surprised and confused at Netflix's recent strategy to completely bail on the DVD shipping industry. It seems in their attempt to completely destroy their DVD rental business, they have chosen the worst name possible. Qwikster is a terrible name because its spelled incorrectly, its weird to say, and it has no relation to movies, DVD's, or mailing. The name is also reminiscent of the decades old, dying, and dead brand called "Friendster" and the random startups that have followed its branding strategy. There is also "Flixster" which is a movie social network, but it seems Netflix has no connection to the Flixster company, so this may lead to confusion among customers.
In addition, I am not confident that movie streaming will be successful. I believe that Netflix wants to lock in streaming subscribers and subscriptions, because that is a strong business model because customers rarely quit or cancel a subscription unless they are in financial difficulty. I believe that most subscribers stay with their services for at least several months or several years, even if they don't regularly use the service. I've heard of many people who forget or don't have time to watch DVDs or streaming movies, yet they continue to pay the monthly fees because its a pain to cancel and then sign-up again when they have more time.
Netflix has had a long and profitable run because of this. But their DVD business is in danger by the cheaper and more convenient RedBox machines, so Netflix is facing a declining future. As for the streaming business, there are a lot of alternatives on the internet to get new releases with faster streaming and good quality. These sites are usually hosted outside the USA. Therefore, streaming is not a proven business in the long run, five to ten years, unless Netflix can lock in subscriptions and max out their earning potential while they still can.
However, as a former Netflix streaming customer, I noticed that they did not have newer releases available to stream. This is disappointing, and I was often left with obscure 80's movies that were okay, but I had no desire or urgency to watch. The DVD business propped up the streaming business in my view because customers could get fairly recent DVD releases, and watch streaming if they had extra time. Also, since Netflix no longer has immediate new DVD releases it seems they should also make those new DVDs available in streaming when they get them, since Netflix has already waited a month. The value for customers in renting movies or streaming movies, is to see the latest releases, not old stuff that you've never heard of. If Netflix cannot provide new releases in either DVD or streaming, then customer will no longer have a need or desire to use their services. I just did not want to pay for Netflix streaming at the increased price because it offered no value for me. It was also difficult to find movies because they were not always available streaming or for only a few months at a time. It was very confusing. They need to make movies available for streaming year round.