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Friday, May 22nd, 2015


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Netflix Opts to Split Services

Netflix is planning to split its streaming and DVD services.The popular movie service Netflix has announced plans to separate its streaming and DVD delivery services.

The company suffered through a firestorm of criticism in recent months as it steadily edged up prices for its services, before eventually deciding to entirely split the price for streaming and DVDs. The announcement came as an admission of guilt from the company's chief executive officer, Reed Hastings, who acknowledged the company had acted "without humility" in its pricing decisions, according to Bloomberg.

The key problem for the company, and its impetus for raising prices in the first place, was the differing costs and advertising needs for the two services.

"Our view is with this split of the businesses, we will be better at streaming, and we will be better at DVD-by-mail," Hastings wrote in a blog post.

The company should complete the split within a few weeks, with Netflix maintaining its streaming services and the new DVD delivery service taking the name Qwikster. The new company will be run by Andy Rendich, who has managed that portion of Netflix for the past four years.

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