Qwikster Launches as Independent DVD Rental Service

In a strategic move to separate its streaming and DVD rental services, Netflix announced the launch of Qwikster as an independent subsidiary. This decision aimed to streamline operations and focus on the distinct markets of streaming and physical media rental. The pricing structure for both services was set at $7.99 per month, which raised concerns among customers who perceived the separation as a potential price increase. The announcement was met with significant backlash from subscribers, many of whom felt that the change undermined their loyalty to the Netflix brand. The immediate impact was evident as Netflix experienced a sharp decline in its stock value, and approximately 800,000 subscribers canceled their memberships, representing a notable loss from its then 12 million customer base. This reaction highlighted the risks associated with altering established business models in the face of evolving consumer preferences. In response to the overwhelming negative feedback, Netflix quickly reassessed its str