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NETFLIX To Become Qwikster

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The caveat of "customers are right, all the time" hit home for NETFLIX CEO Reed Hastings last week. The creator of the now popular movie rental-by-mail service, the company that Hasting also co-founded suffered a huge blow when its stock price nose-dived to $155 per share or a 19% drop. The current upheaval stemmed from NETFLIX's decision to increase its membership subscription fee up to 60% back in July. Since then, the company estimated 1 million of its subscribers have suspended their memberships. Former and current NETFLIX customers also took to Twitter, Facebook, Tumblr, and other social media to voice their anger at the sudden price increase. Thus further withered the company's creditability. In an effort to remedy the situation, NETFLIX published a forthright apology with Hastings on video late last night. On it, Hastings also introduced NETFLIX's bread-and-butter movie rental-by-mail service as the new company Qwikster and its new CEO Andy Rendich. Essentially a spin-off of NETFLIX's disc subscription service, much of the look and feel will be the same, including the iconic red envelope, instead now with a new logo. In addition, Qwikster will start to offer gaming titles for rent too. As for NETFLIX, the company will still focus on its lucrative content-streaming business. Hopefully, this change will placate the public and Wall Street analysts somewhat