Netflix Splits DVD and Streaming Services Into Two Companies
Netflix is splitting into two separate companies to better differentiate and manage their products. “Netflix” will handle the streaming side of things, while a new company called “Qwikster” will takeover DVD/Blu-ray rentals. Netflix isn’t really outsourcing the DVD side though as Qwikster is firmly in their control and uses members from the existing management team. Aside from DVD/Blu-rays, Qwikster will offer video game rentals.
It really does look like Qwikster and Netflix will be separate. You’ll be billed individually by each company (rates will stay put) and you’ll have to change your info for each site if you get a new credit card or address.
Here’s Netflix CEO Reed Hastings announcing the move and apologizing for the past couple months:
[youtube]http://www.youtube.com/watch?v=c8Tn8n5CIPk[/youtube]
So, what do you think? I think there is solid thinking behind the split but with all the troubles Netlix is having with streaming and acquiring rights for a reasonable cost, it’s a curious move that the “new company” would get the established service. It could be weird to see the “Netflix” part of Netflix go under, while the “Qwikster” part of Netflix keeps on chugging along.
And as proof that this was a rushed decision, they jeopardized their web presence by not making sure “Qwikster” was available on Twitter.