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CNET News Video: How Netflix has blundered
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CNET News Video: How Netflix has blundered

1:25 /

Critics are calling it a box office flop. Not a new movie, but rather, Netflix, the service that provides them. The pioneering mail-in DVD rental service has recently undergone major changes, upsetting its subscribers. CNET's Kara Tsuboi reports.

-Netflix's Red mail in DVD envelopes change the way people watch movies, but recent price and service changes have angered there local base of 25 million subscribers. -If you realize, they are on the top spot, but they didn't do a very good job at telling people what was gonna happen. That's why Reed Hastings, the CEO and Co-founder of Netflix e-note customers and took his company's blog and YouTube channel to apologize and explain himself. -I just wanna say again how sorry I am of the way that we handled the communication around this big changes. Hastings explained that the company will now be splitting into 2, one to process its DVD rentals and one to handle the online streaming service. -Now, you're kind of juggling things on 2 different websites and it's kind of become cumbersome now. -Another big change is the name. The DVD service will go from Netflix to Quickster. -I think it sounds like Napster. I like Netflix better. -Why change a brand name if you've already got a brand that's entrenched in the market. -Quickster, what is that mean? And it doesn't say anything about what it is. Netflix tells you exactly. -To add insult to injury, the twitter user who has already claimed the handle at Quickster is a smoking cartoon character forcing CEO Hastings to wedge a separate public relations battle. In Francisco, I'm Kara Tsuboi, CNET.com for CBS news.

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