Netflix changing DVD mail service to Qwikster

Netflix is changing again, but the CEO says only the name will change and not the price of the service.  The streaming video feature will keep the name “Netflix” and the DVD delivery to your home will become Qwikster.

In issuing the latest announcement, the CEO issued an apology to try to appease the critics who have been upset with the company since it announced a new pricing structure for DVD delivery and streaming video. The CEO said he’s realized that streaming and DVD by mail are two different business with different cost structures.

The Qwikster name will take effect in a few weeks, but the company says consumers won’t notice many changes on the website even though you’ll go to qwikster.com to order your movies. There will be a new option for video games although it will be an upgrade like Blue-ray.

The one downside is that you will go to two separate websites if you subscribe to both services. The sites will not be integrated.

In announcing the changes the CEO and Co-Founder, Reed Hastings, said, “I messed up. I owe everyone an explanation.

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 CEO goes on to mention Borders and AOL dialup adding that some companies that do one thing well “do not become great at new things that people want (streaming for us) because they are afraid to hurt their initial business.” He said companies don’t die from moving too fast, but perhaps they get things wrong.

“In hindsight, I slid into arrogance based upon past success. We have done very well for a long time by steadily improving our service, without doing much CEO communication. Inside Netflix I say, ‘Actions speak louder than words,’ and we should just keep improving our service.

But now I see that given the huge changes we have been recently making, I should have personally given a full justification to our members of why we are separating DVD and streaming, and charging for both. It wouldn’t have changed the price increase, but it would have been the right thing to do,” Hastings said.

What do you think of the changes and new name? Click comment below.

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One response to “Netflix changing DVD mail service to Qwikster

  1. Pingback: What were they thinking? | Jenn Strathman