When Netflix alerted subscribers that it was separating streaming and DVD rentals and increasing subscription rates, suffice to say, people were not happy. Today, two months after the initial announcement, Netflix CEO and Co-founder Reed Hastings “[offered his] sincere apology” to members through email.
“Many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent…” he said. Hastings laced the email with his personal usage of Netflix and empathy with users who are saddened by the changes.
The majority of the email offered members an explanation for the decisions that were made. Hastings stated that DVD by mail and streaming have different costs associated with them and should therefore be separate businesses.
Hastings also informed members that the new name chosen for the DVD by mail business is Quikster because of quick delivery of product. Streaming services will retain the Netflix name.
Quikster.com is the new name of the website for DVD customers but services will remain the same. It is expected to be up and running in a couple of weeks. A new feature the site will offer is a video game upgrade option. Quikster.com and Netflix.com websites will not be integrated.
On members’ credit card statements, charges will be separated between the new Quikster and Netflix. Total amounts, however, will be consistent with current billing totals. For those who love the red Netflix envelopes, those are staying, but it will read Quikster instead of Netflix.
Hastings acknowledged that it is going to take time to regain the trust of its members but stated: “Actions speak louder than words. But words help people to understand actions.”
He also directed members to more thorough information on the Netflix blog.