Monday, September 19, 2011

Netflix To Split Business

DVD rental and video streaming service Netflix CEO Reed Hastings said Sunday evening that the firm will be splitting the company into two, renaming its DVD-by-mail service to Qwikster. The split comes after a huge user backlash after the company said it would be increasing its prices for DVD rentals, and where it was forced to lower its estimates of subscribers. Hastings cited the need to improve its streaming services and need to improve its revenue growth.