Contact Us

Netflix Woes Continue; Splitting DVD And Streaming

(Photo by Elizabeth Fuentes/Getty Images for Netflix)

Just when you thought you had a handle on what Netflix was doing with it’s services and pricing structure, comes the news today from corporate headquarters via a blog post from it’s CEO.

Netflix Inc is separating its movie streaming business and its DVD by mail service, which will be called Qwikster, Chief Executive Reed Hastings said in a company blog post.

This news comes as nervous investors have driven the stock price down.

Netflix’s move follows the company’s decision to increase the monthly subscription for a joint streaming and DVD rental service by as much as 60 percent that caused an uproar among customers and bloggers. Netflix shares have fallen sharply since the price increase was announced.

CEO Reed Hastings was quick to assume the blame.

“I messed up. I owe everyone an explanation,” Hastings wrote in a blog post.


Hastings said streaming and DVD by mail were becoming two quite different businesses, with very different cost structures. He also added that these two businesses offered different benefits that needed to be marketed differently.

“We need to let each grow and operate independently,” Hastings said.

So will there be more price increases on the horizon?

Hastings assured there would be no pricing changes and members who subscribe to both services would have two entries on their credit card statements, one for Qwikster and one for Netflix. The total amount would be the same as the current charges.

Netflix to split DVD, streaming services – Business – US business – Media biz –

Best of Kool 101.7

Recommended for You

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account just click on the account activation button below. You will maintain your existing VIP profile. After you do this, you will be able to always log in to using your original account information.

*Please note that your prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

(Forgot your password?)

Not a member? Sign up here

Sign up for KOOL Gang quickly by connecting your Facebook account. It's just as secure and no password to remember!

Sign up to have exclusive KOOL Gang contests, events, coupons, presales, and much more delivered to you for FREE.