Netflix CEO Reed Hastings announced in a blog post and YouTube video that the company will spin off its DVD by mail service to a new company called Qwikster. The move will allow Netflix to better concentrate on its streaming video service. Customers wishing to rent DVDs by mail will access their accounts at Qwikster.com, which will be entirely separate from their Netflix account (billing will also be separate). One interesting change is that Qwikster will also feature video game rentals for Wii, PS3, and XBOX 360.
Only time will tell if this will be a successful move for Netflix. It's clear that Hastings wishes to focus on streaming content, but with a limited selection of movies in its Watch Instantly library, and the severing of the DVD by mail service, it's a critical time for Netflix. The company clearly needs some big content deals and a more compelling offering if it wants to retain customers.
Microsoft gave a preview of Windows 8 at its BUILD event in Anaheim, CA today. In a radical shift from previous versions of Windows, Windows 8 is built with a special emphasis on a touch interface using a tablet as the primary device, although the OS runs on regular desktop and notebook computers also.
This is still an early preview release and there are still no doubt numerous kinks to work out, most notably visible at 5:25 of the video below. Microsoft gave out Samsung tablets with Windows 8 pre-loaded to about 5,000 BUILD attendees. Some are reporting fan noise and excessive heat coming from the Samsung tablets, but this may just be because of extra debugging/development code running in this pre-beta version of Windows 8.
After watching some hands-on demovideos, my impression is that the interface is not as intuitive as it could be, and may be frustrating for some users (namely pulling in the "charms" interface on the right side of the tablet). Nevertheless, I applaud Microsoft for striving to innovate, and I look forward to seeing the final product. If you were one of the BUILD attendees who got a Samsung Windows 8 tablet, please share your experiences in the comments below.
The bottom line: Netflix subscribers will now pay more and get less than what they already had before.
Netflix has apparently enforced a rule prohibiting a subscriber from watching more than one stream at a time. This means that if Mom and Dad want to watch a movie, then the kids in the other room have to turn off Phineas and Ferb. Just last week Netflix enforced new pricing on its service, forcing customers to pay extra for physical DVDs (from $9.99 to $15.98/mo. for the Unlimited Streaming + 1 DVD out at-a-time plan). Additional streams can be purchased for $7.99/mo. per stream. To top it off, Netflix and Starz failed to reach a licensing agreement recently, which will reduce the selection of titles in its already scant Watch Instantly library.
Update (9/7/11): According to Engadget, this is an "error" that Netflix is working to fix.
