Netflix Splits Services, Introduces Qwikster

Earlier this summer, Netflix announced a 60% increase on subscription fees, prompting about one million subscribers to cancel their subscriptions. Now Netflix is splitting its online streaming and DVD-by-Mail services. To order DVDs via snail mail, Netflix users will have to sign-up for Qwikster, the newly renamed mail order plan. The separately named service will show up as a second billing statement, in addition to online Netflix services.

Recently, Netflix CEO Reed Hastings posted a letter to the Netflix website, apologizing for his lack of communication with customers about the sudden changes. “I messed up,” Hastings said. “I owe everyone an explanation.” The full letter can be read here.

Even though Netflix and Qwixster accounts will split into two billing statements, Hastings assures Netflix subscribers that prices will not increase a second time. He also apologized for his own “arrogance based upon past success” and promises to communicate with subscribers through any future Netflix evolutions.



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