Netflix leaves Qwikster to handle DVD-by-mail service

Netflix announced through a letter posted on its website on Sunday that it will leave Qwikster to handle DVD-by-mail service. If you have no idea what’s a “Qwikster”, it’s ok, it’s normal. The management of the live-streaming service announced that it will be the name of the new service. Netflix will resume to the online streaming service, The New York Times reports.

The chief executive of Netflix, Reed Hastings, apologized in a public letter posted on the company’s website on Sunday evening, about the way he has handled the price changes. ”I messed up”, he said and “I owe everyone an explanation”. 

A few months ago, in mid-summer, Netflix was announcing a raise in the price of the two services it offers. Until that moment, customers paid a 10 dollars a month subscription fee, for both DVD-by-mail and online stream. The announcement stated the two services will split and each of them will be 8 dollars. So, the clients who wanted to continue and benefit from both services, had to pay 60% more than before. This caused waves of insatisfaction and caused the Netflix customers to migrate towards other similar services. The customers ditching Netflix rose to a huge number of one million.
“We realized we should have communicated better in July when we announced the price change” said Hastings. He added that the arrogance that came with the success prevented him and his team to properly manage the price change politics. He now explained that Netflix will only handle the online streaming service. The DVD-by-mail will be taken over by Qwikster. So the red envelopes that you were used getting you movies into, will now get a totally new look. We are talking about a separate brand. However, there will be no change in the prices mentioned in the summer.

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Eli Wads is one of our expert authors in technology and business fields.Currently living in San Marino, Eli has graduated at Southwestern Academy with a Bachelor Degree in business in 2008. Contact him by dropping him an e-mail at

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