Netflix Spins Off DVD-by-mail service, Now Introducing Qwikster
>By James Lenhart
On Sunday, Netflix CEO Reed Hastings announced that a new company called Qwikster would separate their streaming business from DVD’s. The brand Netflix will continue on as a streaming platform — delivering instant video.
The first line of the post read, “I messed up. I owe everyone an explanation.” He goes on to say that many businesses fail to succeed in new ventures, and that he wants to make sure users are not confused as Netflix continues it’s push into streaming video only. Andy Rendich who has been working on Netflix’s DVD portion over the last four years has been appointed the CEO of Qwikster and will lead the company beyond the transition.
You’ll want to know that Qwikster and Netflix are two separate entities and will be treated as so with two different websites, two different credit card charges, and two different ratings systems. About the only thing remaining is the red colored envelopes — aside from the the fact the logo will change as well.
On the upside, Qwikster will be adding video games for the Wii, PS3, Xbox 360, and they also have plans to upgrade their Blu-Ray slection. Netflix on the other hand will begin to add a “substantial” amount of content to their library over the next few months, says Hastings. And on a final note the two companies combined will not cost you more than what you are paying now — they’ve simply split the company into two.