Netflix to separate rental, streaming services

Posted by Mark Raby

Netflix has publicly admitted that its recent structural changes were not handled perfectly, and now has a new strategy.

That is, to put an even wider partition for customers between the company's DVD by mail service and the growing segment of digital on-demand streaming.

Those who want to continue watching TV shows and movies whenever and wherever they want don't need to do anything.

But if you're the kind of person who liked getting those ubiquitous red envelopes in the mail, you'll soon need to start getting familiar with the website Qwikster.com. That site, currently displaying a "launching soon" message, will be the place to ask for DVD rentals.

"Members have been asking for video games for many years, and now that DVD by mail has its own team, we are finally getting it done. Old Fogey discs will last a long time," said Netflix CEO Reed Hastings in an online post.

Hastings was also humbled when discussing the changes online. He wrote, ""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. I messed up. I owe everyone an explanation."