Monday, September 19, 2011

Netflix spins off DVD by mail service to new company Qwikster

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, 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.

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