Netflix, the popular DVD-by-mail and online movie streaming website, is making a bold business move that will hopefully save the company from going bankrupt and shutting down like Borders Inc., which closed the last of its bookstores this past weekend.
Netflix’s movie mail order plan will be separated from its online streaming plan. “Qwikster” will now be the way Netflix subscribers get DVDs via mail. Subscribers will be required to go to a separate website to access Qwikster.
When a customer subscribes to both services, they will receive two different entries on their credit card statements.
Barbara Ortutay of USA Today thinks that Netflix is being a bit risky with their new plan, stating: “It’s a risky bet. The amount of streaming content the company offers is still far less than the number of DVDs in its catalog. And competition, from Hulu, Amazon, Coinstar’s Redbox kiosks and other services, is growing. Netflix could even alienate customers further by asking them to now deal with two separate websites and accounts instead of just one.”
Customers and NFLX shareholders don’t seem to happy about the change. The change is expected to raise prices for some users who want both services by an estimated 60 percent.
According to USA Today, shares of the Los Gatos, California based Netflix (NFLX) rose $3.33, or 2.2 percent, to $158.52 in morning trading.