Netflix Rebrands DVD/Blu-ray Mail Service as Qwikster, Adds Video Game Rentals
HomeNetflix Rebrands DVD/Blu-ray Mail Service as Qwikster, Adds Video Game Rentals
Posted September 19, 2011 01:58 PM by Matthew Smith
In a blog post and email to members, Netflix CEO and co-founder Reed Hastings announced that the company will be completely separating their online streaming service and mail service with the launch of Qwikster.
The new site, Qwikster.com, will offer the same DVD and Blu-ray selection as Netflix's traditional mailing service and will also give subscribers the option to rent PS3, Xbox 360 and Wii games. Similar to the Blu-ray upgrade, video game rentals have been added as a premium but no other price changes will go into effect.
According to Hastings, the move, which comes on the heels of criticism for the recent price change and sagging stock performance, was prompted by the evolving cost structures of the two services. He stated:
"...We realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently. It's hard to write this after over 10 years of mailing DVDs with pride, but we think it is necessary: In a few weeks, we will rename our DVD by mail service to "Qwikster". We chose the name Qwikster because it refers to quick delivery. We will keep the name "Netflix" for streaming."
Members who currently have both services will begin seeing separate charges on their account statements for Netflix and Qwikster. As for the DVDs and Blu-rays themselves, they will still be delivered in the company's famous red envelopes but will sport Qwikster's new logo.
Check out the official statement from Reed Hastings and new Qwikster CEO Andy Rendich (formerly head of Netflix's DVD operations) in video form below.
The new site, Qwikster.com, will offer the same DVD and Blu-ray selection as Netflix's traditional mailing service and will also give subscribers the option to rent PS3, Xbox 360 and Wii games. Similar to the Blu-ray upgrade, video game rentals have been added as a premium but no other price changes will go into effect.
According to Hastings, the move, which comes on the heels of criticism for the recent price change and sagging stock performance, was prompted by the evolving cost structures of the two services. He stated:
"...We realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently. It's hard to write this after over 10 years of mailing DVDs with pride, but we think it is necessary: In a few weeks, we will rename our DVD by mail service to "Qwikster". We chose the name Qwikster because it refers to quick delivery. We will keep the name "Netflix" for streaming."
Members who currently have both services will begin seeing separate charges on their account statements for Netflix and Qwikster. As for the DVDs and Blu-rays themselves, they will still be delivered in the company's famous red envelopes but will sport Qwikster's new logo.
Check out the official statement from Reed Hastings and new Qwikster CEO Andy Rendich (formerly head of Netflix's DVD operations) in video form below.