Netflix announced in July that it was separating its streaming movies services from its traditional mail service. The change included a price increase, causing customers who were paying $8/month for both services to begin paying $16/month for both services. This change was met with serious backlash from their customer base. Early reports are showing that Netflix lost over 1 Million members as the price changes took affect.
Today, Netflix announced the second move to this split. They are rebranding the mail service, now calling it Qwikster, and adding video games to the service. With RedBox growing and providing instantaneous gratification at its kiosks for movies and games, this move has to be designed to be offsetting.
I for one do not like the name change. It may be necessary to separate the negative publicity and vibe but this looks like more of a cover up than addressing their real issue, trust.
As always, The Oatmeal has an awesome cartoon concerning Netflix.