Netflix has announced that it is spinning off the DVD side of its company into an entirely separate entity, renaming it Qwikster, and looking to expand its streaming service to a global level.

Initially, this is in a bid to make sure there is no confusion in the US between the pricing of the streaming and DVD rental part of the service – something the company has admitted it got wrong – but a blog post hints that the Netflix streaming service is set to go global.

In a candid blog, Reed Hastings, Co-Founder and CEO, Netflix, said he was sorry for a lack of communication about the pricing structure at Netflix and that he hoped the separation of the two sides of the business would remedy any problems customers were having.

"I messed up. I owe everyone an explanation," said Hastings. "It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming, and the price changes. That was certainly not our intent, and I offer my sincere apology."

Substantial new content

The blog goes on to note that the reason for the split is to become better as a service and company, but he also mentions that he hopes its streaming service will break free from the US.

"Going forward, Qwikster will continue to run the best DVD by mail service ever, throughout the United States.

"Netflix will offer the best streaming service for TV shows and movies, hopefully on a global basis. The additional streaming content we have coming in the next few months is substantial, and we are always working to improve our service further."

While Netflix built its name on its DVD rental arm, it is clear that the streaming service is where the future of the company lies, as this still holds the Netflix brand.

Hastings looks as if he is trying to embed Netflix as the streaming service of choice as soon as he cans, explaining in the post: "Companies rarely die from moving too fast, and they frequently die from moving too slowly."

Via CNet