Netflix Drops DVD Queue Editing in Apps & Devices

In a seemingly innocuous post on the company blog, Jamie Odell, director of product management at Netflix dropped a bombshell on users that is echoing across the Internet (and on Netflix' own website):

Hi there, it’s Jamie Odell, director of product management at Netflix, with an update for members who add DVDs to their Queue from the device they use to watch instantly. We’re removing the “Add to DVD Queue” option from streaming devices. We’re doing this so we can concentrate on offering you the titles that are available to watch instantly. Further, providing the option to add a DVD to your Queue from a streaming device complicates the instant watching experience and ties up resources that are better used to improve the overall streaming functionality. This change does not impact the Netflix Web site, where most members manage their DVD Queues.

While it may not seem like a big deal, Netflix recently raised prices to compensate for higher fees on content delivery. This raised pricing for those renting DVDs and Blu-ray discs by mail. At the same time they announced a lower cost streaming-only plan. Together, these moves seem to point to a streaming-only model for the rental company. The trouble is, most of their DVD-based content isn't available for streaming, and eliminating convenience features doesn't seem like a truly helpful way to encourage greater levels of adoption.

Can Netflix survive as a streaming-only model? We don't think so, unless it also finds a way, through negotiations and lots of capital, to infuse its streaming collection with all of its currently-disc-based content. Until that happens, their best course of action would seem to be catering to its core customers, not ticking them off by reducing features.

This is a tricky and ponderous move at best - and it's no wonder everyone is now wondering what the company is really up to.