A Netflix apology was issued by Reed Hastings, the company's CEO. After a 60% July rate hike that offered no additional Netflix services and no logical reason or explanation to their customers, Hastings finally admitted that the company made a mistake.
He further explained:
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...
Separate But Equal
In his Netflix apology, Hastings outlined a plan that separates the DVD-by-mail service from the online streaming service. Customers had expressed extreme dissatisfaction with the price increase for steaming content, citing that the streaming content library was not comprehensive enough to justify a bigger expense. Hastings said that they are going to be adding more streaming content without increasing the price.
Qwikster: Neflix's New DVD-by-Mail Service
The DVD-by-mail service is going to be separate from the streaming service and will go by a new name, Qwikster. The Qwikster site will offer both DVD rentals and video game Rentals. Qwikster has plans to launch in a few weeks with a brand new CEO.
On a side note, the Netflix apology was issued to the press, yet it appears that current customers are still waiting for that apology.
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