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Netflix spins DVD-by-mail service off into Qwikster, says it's 'done' with price changes (video)

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Over on Netflix's official blog, company head Reed Hastings has announced in a surprisingly humble blog post and video (embedded after the break) that it's splitting the DVD-by-mail business away into a new venture dubbed Qwikster. While the recent price changes already split the cost for each service, when this takes effect in a few weeks it will result in two different websites, two different sets of movie ratings and queues, and two different charges on customer's bills. He admits two separate sites may make it more difficult to manage a presence on both, but says dropping the need for compatibility between the two will enable new features to balance that out. Another change? Netflix Qwikster (is there anything good about that name?) is getting into video game rentals, available for an extra charge similar to the existing Blu-ray disc option.

While the blog post blames a lack of communication for much of the backlash (and obviously cancellations), it's about to become very clear that Netflix is "primarily a streaming company." Also mentioned is "substantial" additional streaming content coming in the next few months. Whatever the company calls itself, charges, or changes on its website, if Netflix wants to talk its way back into subscriber's good graces, starting with something new to watch is the way to do it.



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