Netflix changes DVD, streaming policies, again

Netflix co-founder and CEO Reed Hastings went on record today to announce changes to the popular movie watching site.

The company will split its business into two. Netlifx will continue to host the streaming of movies while a new company called Qwikster will run the DVD mail rental service.

This announcement comes two months after the company faced harsh criticism for raising the rates of all members without much explanation as to why. Previously customers who got movies by mail and online paid less for the combination than the offerings cost separately.

“I messed up,” Mr. Hastings wrote in his lengthy, apologetic blog post, “I owe everyone an explanation.”

Qwikster will offer a subscription tier that includes videogame titles for Wii, PlayStation 3 and Xbox 360 console systems.