Netflix, Inc. (NASDAQ:NFLX) had recently created separate plans and prices for DVD-only services and for streaming-only services. Netflix has now created a separate company called Qwikster, which will be the DVD unit of Netflix. Netflix co-founder Reed Hastings wrote the following message on the Netflix blog:
When Netflix is evolving rapidly, however, I need to be extra-communicative. This is the key thing I got wrong.
In hindsight, I slid into arrogance based upon past success. We have done very well for a long time by steadily improving our service, without doing much CEO communication. Inside Netflix I say, ?Actions speak louder than words,? and we should just keep improving our service.
They chose the company name Qwikster for their DVD service because it refers to their quick delivery. Netflix will be the name kept for streaming on the Internet.
Andy Rendich will be the CEO of Qwikster. Rendich worked at Netflix’s DVD service for 12 years and led it for the past 4 years. The red envelopes that said Netflix on them will be replaced with the name Qwikster too.