Netflix Renames DVD Service

LOS GATOS: Netflix’s DVD-by-mail service is being renamed Qwikster, with the offering to now include a video games upgrade option, all of which is entirely separate from the streaming business.

In a blog post, CEO Reed Hastings said the DVD service will function the same as ever, "just a new name." He also said Netflix will add "substantial" streaming content in the next few months. Hastings reassured customers that there are no more pricing changes ahead.

"I messed up. I owe everyone an explanation," opened Hastings’ blog post about the separation of DVD and streaming and the price changes.

"We realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently," he continued. "It’s hard for me to write this after over 10 years of mailing DVDs with pride, but we think it is necessary and best: In a few weeks, we will rename our DVD by mail service to Qwikster.

"We chose the name Qwikster because it refers to quick delivery," Hastings added.

Andy Rendich, who has been with Netflix working on its DVD service for 12 years, will be the CEO of Qwikster.

"Some members will likely feel that we shouldn’t split the businesses, and that we shouldn’t rename our DVD-by-mail service," said Hastings. "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. The additional streaming content we have coming in the next few months is substantial, and we are always working to improve our service further."

He concluded, "Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions."