Netflix Rebrands DVD-By-Mail as 'Qwikster'

LOS GATOS, California ( TheStreet) -- Netflix ( NFLX) said it would rebrand its DVD-by-mail service as "Qwikster," as it separates the business from its movie streaming business.

The company said it would keep the name "Netflix" for streaming.

Netflix has received significant criticism after increasing subscription prices during the summer. The company decided to separate the popular DVD-by-mail and streaming option, raising the price for both services to $16 per month from $9.99.

CEO Reed Hastings, in a company blog post late Sunday, said he "messed up" and owed everyone an explanation.

"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. That was certainly not our intent, and I offer my sincere apology. I'll try to explain how this happened," Hastings said.

The CEO said streaming and DVD by mail are becoming two quite different businesses, "with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently."

" It's hard for me to write this after over 10 years of mailing DVDs with pride, but we think it is necessary and best: In a few weeks, we will rename our DVD by mail service to "Qwikster,." Hastings said.

Hastings said there would be no pricing changes. ("We're done with that!" he said). Members who subscribe to both services will have two entries on their credit card statements, one for Qwikster and one for Netflix. The total amount would be the same as the current charges, according to Hastings.

-- Written by Joseph Woelfel

>To contact the writer of this article, click here: Joseph Woelfel

>To submit a news tip, send an email to: tips@thestreet.com.

More from Stocks

Tempted by General Electric's Dividend Yield? Grab Yourself a Burger Instead

Tempted by General Electric's Dividend Yield? Grab Yourself a Burger Instead

Has Wall Street Completely Lost Its Mind on General Electric?

Has Wall Street Completely Lost Its Mind on General Electric?

Tesla CEO Elon Musk Is Cracking Under Immense Stress and Investors Should Worry

Tesla CEO Elon Musk Is Cracking Under Immense Stress and Investors Should Worry

10 Questions for PayPal Ahead of Its Big Investor Day

10 Questions for PayPal Ahead of Its Big Investor Day

Trump Tariff Threat, Deutsche Bank, Elon Musk and Apple - 5 Things You Must Know

Trump Tariff Threat, Deutsche Bank, Elon Musk and Apple - 5 Things You Must Know