Netflix spins DVD rentals into new business dubbed ‘Qwikster’
Netflix spins DVD rentals into new business dubbed ‘Qwikster’
Netflix CEO Reed Hastings in a letter to subscribers on Monday stated that Netflix will no longer operate the DVD rental-by-mail service that carried it to the top of the home entertainment industry. Instead, Netflix will be a streaming-only service while the DVD rental business — which will soon add video games to its portfolio — is spun off and rebranded Qwikster. “I messed up. I owe you an explanation,” Hastings’ letter to Netflix customers begins. “It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology.” The chief executive continued, attempting to clarify that streaming is the company’s future and this is why it began the process of separating its two services last year. The spin-off of Qwikster as a DVD rental business is the last step in that process, and while investors aren’t terribly happy with the company right now, the move allows Netflix to concentrate on its future: streaming content. Hastings’ full letter to subscribers follows below. More →
