September 19, 2011

Netflix Rebrands DVD by Mail Business

Reed Hastings, writing for The Official Netflix Blog:

"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”."

I wonder how long they've been contemplating this move. Companies don't formulate and implement such a sweeping change in a week.

My money bets that this was their plan all along. Separating the businesses by name and structure makes it easy to sell one of the pieces, before it declines. So who will buy the Qwikster DVD by mail business?