Netflix Splits Its Film Services

Netflix has motionless to broken up its DVD-by-post business from its film streaming service.

The streaming service will keep the name Netflix but the postal DVD let business will be renamed Qwikster.

The statement comes two months after US definite Netflix bumped up the cost of the amalgamated renting and streaming service by 60%.

The cost travel is considered to be at the back the pointy tumble in subscriber figures Netflix has seen.

In July, Netflix reported that it had about 25 million subscribers. In an gain inform final week it mentioned it right away approaching subscribers to number 24 million at the finish of September.

The headlines caused shares in the definite to tumble 19% that brought the complete reject in its share cost to roughly 50% subsequent to the July cost rise.

Netflix team leader Reed Hastings took to the company's blog in a bid to composed the continuing outcry by explaining its reasoning at the back the changes.

He mentioned problems had arisen as Netflix developed from the DVD let business that spurred its primary expansion to a company in that many of its customers were streaming cinema around the web.

"...streaming and DVD by letter are apropos two truly not similar businesses, with really not similar cost structures, not similar benefits that must be marketed differently, and you need to let any blossom and run independently," Mr Hastings wrote.

This was the reason it broken up DVD let and streaming in to well-defined businesses and charged for both, he said.

After the split, customers will be charged for any service they use and their bank and credit card statements will uncover well-defined payments. In addition, any feedback they give on great or bad cinema around a service will not be mirrored on the other.

"Arrogance" formed on past success meant the company not asked to keep its customers informed, he said.

"I messed up," he wrote. "I owe everybody an explanation."