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Netflix CEO E-mails Members And Apologizes For Price Hikes, And Debuts New DVD Structure That Is Unpopular

(Photo by Elizabeth Fuentes/Getty Images for Netflix)

This morning I checked my e-mail and got a message from some dude named Reed Hastings.  (Pictured on left)  Hastings is the CEO of Netflix and wanted to explain the price hike and separation of DVD’s by mail and streaming.  It was a nice explanation and seemed sincere.  Until he got to the part about changing the

A lot of people jumped ship from Netflix when they started separating the dvd and streaming service and charging the same amount of money for half the service.  Hastings admits his “arrogance” and explains that in order for the company to succeed it needs to transition more people into the streaming service.

Then it gets a little confusing.  Netflix now will change the name of their DVD service to Qwikster.  It will be a separate site, basically a separate company.  The streaming will be called Netflix.  They will also be offering game subscriptions too, through Qwikster.

Most of the members (current and former) think this is a bad idea.  I’m a little confused too.  Are they trying to make it a more defined split of services by renaming it?  Hastings does say there will be no more price changes either.  With adding game subscriptions, at least some users will get more bang for their buck, or at least what they are getting now.

Read some of the unflattering comments about the news on Netflix’s blog.

 

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