Netflix Final Decision on Video Game Rentals
- Details
- Category: Ms H. News
- Published on Friday, 27 January 2012 07:05
Change in strategy for Netflix on video game rentals
On October 10, 2011, less than a month after its announcement to begin renting video games under the name of Qwikster, Netflix nixed the idea in order to keep both its DVD and streaming business together. At that time the idea of video game rentals was still "up in the air."
However, during Netflix's fourth quarter earnings call on January 26, 2012, CEO Reed Hasting announced the company has no plans to enter the video game rental market.
Netflix would have faced stiff competition from other video game rental companies including Blockbusters, Gamefly, Redbox and others.
Video game rental market is open for new business entrants/competitors
Source: WSJ Market Data Group
With a substantial decrease in its stock amidst customer complaints, it is no surprise that Netflix would abandon the idea of video game rentals.
With most video game rental customers seemingly unsatisfied with the current services available -- the field is left wide open for upstarts or other companies to enter and compete in what could be a lucrative video game rental market.