Netflix Splits DVD-Streaming Business, Rebrands With Qwikster, Adds Video Games

A few short months ago, Netflix made the bold decision to increase the price for its DVD-by-mail and streaming subscription plan by 60% . The announcement inevitably inspired universal vitriol among customers, but Netflix stuck to its guns, saying in a recent earnings call that the negative reaction hadn’t been as bad as the company anticipated. Now, however, only a short while since the price plans went into effect, Netflix is singing a much different tune: Mea culpa! Last week the company adjusted its guidance because of worse-than-expected subscriber declines (estimating a loss of 800,000 DVD-by-mail customers and 200,000 streaming customers); its stock price took a huge tumble of 19% (down 44% overall since the price plans were announced); and on Sunday night, CEO Reed Hastings took to Netflix’s blog to apologize and offer a slew of (dramatic) solutions.

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Netflix Splits DVD-Streaming Business, Rebrands With Qwikster, Adds Video Games