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Netflix To Separate Its DVD, Streaming Businesses

Netflix Inc. plans to separate its DVD-by-mail service and streaming video businesses.

Netflix has been under scrutiny since July, when it announced it was raising prices and separating its DVD and streaming services into two separate payment plans. Netflix previously bundled both options into a single package.

CEO Reed Hastings said on Sunday in a blog posting that the DVD service will be called Qwikster while the streaming business will be housed under the Netflix name.

Hastings says the DVD service will be the same as ever, "just a new name." But customers will see a video games upgrade option for game rentals on the Qwikster website.

Hastings said it will add "substantial" streaming content in the next few months, and reassured that there are no pricing changes.


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