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‘I Messed Up’: Netflix CEO Apologizes for Mishandling Price Increase — and Announces Another Change

Sep 19, 2011  •  Post A Comment

Netflix Chief Executive Reed Hastings posted a letter on Netflix’s website Sunday night apologizing for his handling of recent changes in the pricing structure, which caused customers to flee the company’s subscription services, reports The New York Times’ Media Decoder blog.

“I messed up,” Hastings wrote. “I owe everyone an explanation.” He said he blamed his own "arrogance based upon past success” for his failure to properly communicate the changes, the story notes.

Hastings also announced a new change — although he wrote that the price of the company’s services won’t change. "We’re done with that!” he wrote.

The change is that Netflix is renaming its DVD-by-mail service to Qwikster, while the Netflix name will remain for movie streaming, the story says. Qwikster and Netflix charges will appear separately on customers’ credit card bills.

Qwikster will become its own brand with its own management team, the story notes.

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