Netflix CEO Reed Hastings wrote in a letter to subscribers Monday that the company will split its DVD-by-mail service into a new service called “Qwikster.”
The company will continue to offer streaming video services under the Netflix moniker.
The split follows a recent — and unpopular — price hike in which Netflix raised subscription fees for customers who pay for both DVD-by-mail and streaming video services.
The Qwikster name change is scheduled to happen in a matter of weeks. The company will use separate websites for both services, and Netflix plans to add video game rentals, for an extra fee, to Qwikster customers.
No additional pricing changes are planned, Hastings wrote.