Netflix CEO Apologizes, Renames DVD Service ‘Qwikster’
The online streaming and DVD rental service will now have two separate branches that focus on each side of the business individually.
After recent price increases and a limitation on simultaneous movie streaming sent Netflix customers into a rage, the movie rental service’s stockholders followed suit as the once high-flying stock tumbled down to $155 a share from over $300 a few months ago, making it the worst-performing stock on the S&P 500 last week.
Co-Founder and CEO Reed Hastings issued an apology and explanation in a company blog post this morning. Citing the fear that Netflix wouldn’t succeed in making the leap from DVD rental to streaming, Hastings explained why Netflix moved quickly and aggressively: