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Netflix Splits Off DVD Rentals, Calls It 'Qwikster'
Company Accelerates the Streaming Future
by Karl Bode 08:55AM Monday Sep 19 2011 Tipped by andyb See Profile
Last week Netflix acknowledged that the company's decision to split apart their DVD rental and streaming tiers -- and impose a massive rate hike in the process -- resulted in them losing a million more subscribers than previously predicted. While the press reacted somewhat hysterically, we noted that the rate hike likely was a blip on the Netflix radar given the fact cable refuses to compete on price.

This week Netflix announced they've escalated their focus on streaming even further, by announcing over at their blog that they're also literally splitting up their DVD rental and streaming divisions, giving the former a new name: Qwikster. In the statement, CEO Reed Hastings apologizes for angering customers, and insists the split will make both segments better:
Some members will likely feel that we shouldn’t split the businesses, and that we shouldn’t rename our DVD by mail service. Our view is with this split of the businesses, we will be better at streaming, and we will be better at DVD by mail. It is possible we are moving too fast – it is hard to say. But going forward, Qwikster will continue to run the best DVD by mail service ever, throughout the United States. Netflix will offer the best streaming service for TV shows and movies, hopefully on a global basis.
Hastings notes that the services will also have different websites, a change that could prove confusing for many subscribers. While the move is being lamented in the media as a failure before it even begins, it simply signals that Netflix sees the future and plans to focus on what future subscribers will want -- before many even realize they want it.

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reply to 88615298

Re: Groan......gotta keep track of two accounts, now?

said by 88615298:

Well the people that dropped DVD and went with RedBox had 2 account anyways right?

You just have to argue with every single post, don't you? We get it, you like to take the opposite view than everybody else on every single topic in every news article. It's cute, we all get it. Now you can stop.

In response to the OP. Yeah the split did suck, but how realistic was an $8 all you can eat buffet for the long run? I saw a price hike as inevitable. Lets just hope they can get some better content for streaming now.

Tavistock NJ

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reply to jims2321

Re: Netflix not so smart?

said by jims2321:

This really is going to impact their business.

They are writing off DVD by mail business by renaming it and spinning it off. This is a purely financial move to get that business off the books of Netflix so that as DVD by mail is killed off it won't drag down the Netflix stock price. All the pretty words by Netflix's CEO is nothing but a smokescreen for the investors.