Netflix CEO admits 'arrogance,' renames disc business Qwikster

After watching customers leave and the company's stock price plummet, Netflix Chief Executive Reed Hastings on Sunday admitted that he had fallen victim to "arrogance" and announced changes to the DVD offering. The company's DVD-by-mail service will get a new name, Qwikster, and add the option to order video games along with movies. "We chose the name Qwikster because it refers to quick delivery," Hastings wrote in a blog post and an email sent to subscribers. "We will keep the name 'Netflix' for streaming." Netflix in August announced that it would separate the pricing for online video streaming and DVDs, resulting in a hike of up to 60% for people who utilize both options. A number of customers were outraged, and last week Netflix disclosed that it is on track to lose 600,000 subscribers in the current quarter, after previously telling investors to expect that it would add 400,000. As a result, Netflix stock fell 26% in two days, equating to a loss of $2.6 billion in market value.

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