Source.
Hastings chose to cap the week with a post to Netflix's blog apologizing for the way the price hike was communicated—while still justifying that price hike, and mixing in the alarming news that Netflix intends to create a separate company and website to handle its Blu-ray/DVD-by-mail service from now on. The spin-off, Qwikster ("a Netflix company"), will have its own site, which is expected to launch "in a few weeks"; current Netflix subscribers will have to go there to select films, and the site won't be integrated with the Netflix site, which will solely handle streaming content. The bad news for customers is that there will no longer be any crossover between users' disc-by-mail and Watch Instantly queues, ratings, or reviews, so essentially, Netflix is no longer offering a one-stop-shopping simultaneous competitor to the likes of Hulu and GreenCine; it's creating two lesser, separate services, which will bill separately and require wholly separate use.article
tl;dr -- "Qwikster" is going to be their mail service which looks like it might include videogames now. Netflix will be streaming-only. The sites don't communicate with each other. This means if you search for a movie on Netflix and it's not available, it won't tell you if that movie's on Qwikster. You have to open a new tab and search for it on Qwikster to find out if it's there. You'll have separate queues for both sites.
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This comes after Netflix has been losing tons of customers and their stock price is in a freefall. I don't see how this will help their situation. If you don't care about the videogame service, what does this do besides make things more inconvenient?
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