Netflix and CEO Reed Hastings have faced a customer revolt ever since splitting its DVD-by-Mail service and Video Streaming service into two separate price plans. This comes on the heels of pissing folks off after they raised prices in July. Now, in a post on The Netflix Blog that went up Sunday night, Hastings announced that Netflix would be placing the two services into two separate companies. If you feel like you're being punished for sticking around (like we are), the new DVD-only company, called "Qwikster," will be its own entity from the streaming business.

Customers will still be able to subscribe to both, for double the price, however Qwikster will now offer video game rentals through the mail. GameFly shouldn't worry too much, though, as it looks like Netflix looks to gain back many of the subscribers they've recently lost. All in all, if none of this makes you happy to stay with Netflix, CEO Reed Hastings offers a heartfelt message to the members who feel offended, saying:

"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."

See that wasn't so bad, right? Now, go 'head, cough up $20, and be prepared to watch Best of the Best 3: No Turning Back.

[via Tech Crunch]