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kottke.org posts about Qwikster

Netflix explodes into two companies

posted by Jason Kottke   Sep 19, 2011

Qwikster will rent you DVDs and Netflix will rent you streaming movies. Two separate sites/companies, no interop, you have to sub to both separately, etc. Here's the explanation from Netflix CEO Reed Hastings. This seems amazingly dumb at first blush. (ps. Qwikster?!!)

Update: This is an excellent level-headed analysis of the deal from Dan Frommer.

Netflix's holy grail is to get each person, not each household, to have a separate streaming subscription, the way everyone also has a separate Facebook account. Separating a per-household service like DVD rentals-by-mail helps simplify that eventual transition.