Netflix spins off DVD-by-mail business into Qwikster

If you are one of those Netflix customers still raging at their 60% price increase, here's another shocking news to start your week. Netflix is splitting up into two companies: one for streaming and one for the DVD-by-mail service which will be called Qwikster. Did Netflix just implode or is this a gutsy decision to save the company which has lost 50% of it's market value on Wall Street over the past few weeks?

From Engadget:

Over on Netflix's official blog, company head Reed Hastings has announced in a surprisingly humble blog post and video (embedded after the break) that it's splitting the DVD-by-mail business away into a new venture dubbed Qwikster. While the recent price changes already split the cost for each service, when this takes effect in a few weeks it will result in two different websites, two different sets of movie ratings and queues, and two different charges on customer's bills. He admits two separate sites may make it more difficult to manage a presence on both, but says dropping the need for compatibility between the two will enable new features to balance that out. Another change? Netflix Qwikster (is there anything good about that name?) is getting into video game rentals, available for an extra charge similar to the existing Blu-ray disc option.

Watch the video here: