As we learned back on July 12th, Netflix has decided to separate it’s dvd by mail business and it’s streaming business. Netflix CEO Reed Hastings was panicked that his company wouldn’t be able to make the transition to something new. Take Borders for instance, once the iconic big box bookseller, they didn’t last because they didn’t push to change to e-books or push their own e-reader. While Barnes and Noble is ripe for a buy out, they were able to survive by changing with technology.
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The same holds true for Netflix. Hastings knew early on that the world was turning to streaming so what he wants is to trim the capital expenditures on physical discs and instead use Netflix buying power to license content that they can stream to their millions and millions of users.
So since this is old news, like we said first reported back in July, the new news is that the DVD service has a name now and it’s called Qwikster. Netflix is streaming, Qwikster is for dvds. Customers can still combine subscriptions for both but it’s more costly than it was just a month ago. Effectively Hastings has decided to give the changes they announced on July 12th an official name.