Netflix Apologizes and Puts DVD Rentals Under a Whole New Name - Qwikster

Published Monday, September 19, 2011 11:18 AM

I got an email this morning from Reed Hastings, Co-Founder and CEO, of Netflix. The email was a basically an apology letter to all former and current Netflix Customers. The email also outlined the changes the company is going make in the very near future, which includes putting Netflix's DVD rentals under a new name and giving it a new website.

DVD Rental = Qwikster Streaming = Netflix

Qwikster is what Netflix is calling their DVD service now, which I personally think is a horrible name. It makes me thing of a ghetto gas station and convenience store. The name is suppose to convey how quickly DVDs arrive at your home, but like I said all it says to me is ghetto convenience store. This reenforces the fact that not only does Netflix want to split the DVD and Streaming plans but the business as well. Qwikster will get a new website which will look and feel just like Netflix's current one. Netflix also announced that Qwikster will adding Wii, PS3 and Xbox 360 video games to their rental offerings at an additional fee, just like they do for Blu-ray  

The streaming service will now just be called Netflix. So I assume that calling the streaming service Netflix Instant Watch is no longer necessary since technically Netflix is now only Instant Watch. This move makes me wonder if they planned this split before or after everyone got upset over the price increase. Perhaps they think splitting the company will make people feel better about paying more for the service since you will get charged separately for the DVD and streaming services under their respective names.

Is this a Good Idea?
I think this splitting of the business is going to make people choose between the two services even more since many people will not like going to different websites to manage their accounts. They are basically asking people to signup for a while new service, new login credentials, new credit card payments, and get billed separately. I think this could be a hard sale and may turn off even more customers.

The Apology
On a lighter note it was nice to get an apology letter from the CEO of Netflix. It did feel sincere and heart felt in the email and it made me feel a little better. Reed's main point throughout the email was that he felt he should have explained the changes to the services himself. He would have kept the changes the same but he felt the company handled the explaining of the changes poorly. He later explained the reason for the splitting of the services and why the company is splitting the services under two different names.

What are your thoughts? Leave them in the comments below and let me know. Check out the Netflix blog for the content of the email.

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