Netflix has decided to split up the mailing of DVD’s and the streaming services. They are even rebranding the DVD mail service as Qwikster. The big change however is that Qwikster will also offer video games as well. Also they will be separate so the new Qwikster site will be a separate set up. The CEO had this to sayCommen

For the past five years, my greatest fear at Netflix has been that we wouldn’t make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us) because they are afraid to hurt their initial business. Eventually these companies realize their error of not focusing enough on the new thing, and then the company fights desperately and hopelessly to recover. Companies rarely die from moving too fast, and they frequently die from moving too slowly.

Interesting move making Netflix a brand of just streaming and creating a service that does both movies and video games. It will be interesting to see if they undercut Gamefly or if they will put a pricing structure in place that matches them.