“Our view is with this split of the businesses, we will be better at streaming, and we will be better at DVD by mail.”
Reed Hastings, Netflix Co-founder and CEO, apologizes for the lack of direct communication on his part, and explains the reasoning behind both recent and upcoming changes. While there will be no further price changes, the two features will now be provided through two different channels: Netflix for streaming, and Qwikster for DVDs (now with an option for video games upgrade). The two sites, however, provide no overlap, meaning accounts will require separate attention (i.e. changing credit card information and rating movies).
“This move isn’t about Netflix’s customers. It’s about Netflix’s survival. It’s an obvious point, but it’s the one that matters: DVDs are becoming obsolete.”
“Now, the two autonomous services somewhat clarify [the difficulty of managing queues], but add needless steps to what used to be a seamless process.”
Gawker addresses immediate concerns for consumers.
For visual learners: The Oatmeal’s rendition of the Netflix split through sandwiches.
Just for fun. The Onion introduces Netpix.
