Netflix segmented it’s product offering by Streaming & DVD (Qwickster), a move towards an anticipated direction. Also make sure to have a look below on Netflix’s last take on ‘How to define what customers have been upset about.’.
In the video below the justification for this decision is explained from a ‘branding’ perspective, but there is more than that. This was the only way out for Netflix brand from a media-type that’s becoming more and more obsolete with innovations such as laptops without DVD player, or the adaptation of broadband internet usage. Instead of shutting down their business’s DVD arm (and upsetting their customer base), it separates itself from it trying to be more efficient in the fiercely competitive market of Streaming movies.
What will happen to Qwicster with their offering of posting DVD Movies and console games? They will stay in business until the media type (DVD) and the delivery method (postal) they advocate become obsolete.