Netflix to Split DVD and Streaming Services Into Separate Businesses


In a Sunday night blog post opening with the line "I messed up," Netflix CEO Reed Hastings announced his solution to his company's recent customer hemorrhage and subsequent stock price tumble: Netflix will be splitting its DVD and streaming service arms into separate entities. The streaming service will continue to be known as Netflix, while the somehow increasingly obsolete DVD service will be called Qwikster, the launch of which will introduce a video game rental option. People will be able to subscribe to both businesses, but the sites will not be integrated, and there will be no (new) price change. Is everyone happy now? Anyone? [Netflix]