Remember when Netflix tried to make a separate company to handle distribution of rental DVDs by mail? The company is trying to forget that little strategy, from which it beat a hasty retreat. And, as it turns out, Netflix may be thinking of eventually forgetting DVD altogether.

At the time when Netflix announced that it would split the DVD-by-mail business off into Qwikster, CEO Reed Hastings proclaimed the company’s dedication to DVD, promising to once again turn marketing attention to DVDs, and that “our goal is to keep DVD as healthy as possible for as many years as possible.”

So how’s that working out? During an earnings call yesterday, Hastings said it won’t be putting marketing muscle behind DVD services after all, and that “we expect DVD subscribers to decline steadily every quarter forever.” Oh, and video game rentals, which were also announced with the Qwikster plan? Not happening. Read More »

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Netflix hasn’t had a good time as of late. Its stock took a hammering after it revised its subscription projections following a controversial price increase. The latter move was largely seen as a bet on the future of the streaming business, and an acknowledgement that DVDs-by-mail as a business model is on its way out the door.

Now it looks like more changes are coming to the service. Netflix will be splitting off its DVD-by-mail service. The new service will be called Qwikster and will also include video games. But how will customers react? Read on to learn what we know.

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