Netflix CEO Says “I Messed Up” As DVD Rental Renamed Qwikster
Netflix have sent customers an apology email for the way the DVD and streaming division seperation was handled, and confirmed a complete seperation is now underway. Netflix CEO, Reed Hastings has sent all customers an email apology, after the companies shares plunged and customers started leaving en masse.
Netflix DVD seperation complete
He said, “I messed up. I owe you an explanation.” He continued, “It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.”
Netflix who were the golden boy of online streaming, hit the skids in July, when a big 60% price rise was announced along with plans to split the DVD and streaming services into two different monthly payments.
Hastings also slipped in the fact that the DVD mail will be renamed Qwikster and include optional video game rental.He said that the DVD service will remain the same though, “just a new name.” Subscribers will still be able to use existing accounts and queues when using qwikster.
Netflix see selling DVD’s as a totally seperate business to streaming, having different costs and giving different benefits that need seperate marketing strategies. He said, “We need to let each grow and operate independently.”
The big thing that everyone wanted is not forthcoming though, as prices will remain the same. However Hastings did say that Netflix will be adding “substantial” streaming content to it’s service within the next few months.
Netflix have just lost a big chunk of streaming content after Starz media group, declined to renew their contract.
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