Netflix Renames DVD Business As 'Qwikster', Also Renting Games

Netflix announced on Sunday night that it will change the name of its DVD business to Qwikster, which will be headed by Andy Rendich, the current top man.

It's worth noting that this is not a fully fledged spinoff but just a change of name which highlights the fact that streaming is the area Netflix considers to be its long term future.

And for the first time ever, Netflix will rent out video games for all major gaming consoles (XBox, Wii and PS3) although the flipside is that users looking to rent physical discs and stream content will have to manage two separate subscriptions.

Shares of Netflix fell by almost a fifth after it cut its expected number of subscribers from 15 million to 14.2 million for the quarter, and did the same for its streaming subscriber expectations, which dropped from 22 million to 21.8 million.

Back in July, Netflix caused a massive outcry amongst its customers after announcing significant price rises for those who wanted both DVD and streaming movies.

Netflix CEO Reed Hastings explained the decision in a blog post: "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."