Netflix in a blog post announced of renaming and splitting their DVD-by-mail service into a new entity called “Qwikster,” which will also include video games.
Netflix CEO Reed Hastings says that the move was prompted due to the two services (streaming and DVD-by-mail) slowly becoming two different businesses with different models and cost structures, “Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies.”
“One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games,” said Hastings.
He said another advantage of separate websites is” simplicity for members”. “Each website will be focused on just one thing (DVDs or streaming) and will be even easier to use. So if you subscribe to both services, and if you need to change your credit card or email address, you would need to do it in two places. Similarly, if you rate or review a movie on Qwikster, it doesn’t show up on Netflix, and vice-versa.”
“There are no pricing changes.”
“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.”
Andy Rendich, who will be the CEO of Qwikster made a short welcome video: