Netflix splitting into two entities
After losing a million customers and a major portion of its stock value due to price hike, Netflix has decided that it’s time to go in a new direction. Netflix CEO Reed Hastings said in his blog that in few a weeks Netflix will be splitt into two separate entities.
The two new entities will be named Netflix and Qwikster. Netflix will now refer solely to the company’s video streaming service, and Qwikster will refer to DVD mail order which also offer video games as part of an “upgrade option”.
The Qwikster and Netflix sites won’t be integrated and users will have to sign up for two separate subscriptions. Qwikster will cost $7.99 a month for one DVD, and streaming will still cost an additional $7.99 a month.
Netflix CEO Issues Apology, Renames DVD Business | Adweek