I think the challenge for Netflix here will be to disassociate Netflix with DVD rentals. People will go to Netflix's website, and expect their DVDs to be there alongside their streaming movies.
When I think of the term Netflix, I think of watching flicks on the Internet. I'm sure a lot of people don't look at it that way, but the term Netflix makes a lot of sense when referring to a streaming service (as opposed to a service that rents out physical media).
I know a lot of non-savvy people probably can't make that connection, but I think the company will make it clear that Netflix is no longer the place for DVDs.
When I think of Netflix, I think of renting flicks on the net... which is, um, what the original name meant. Also there's the whole last decade of this association.
When I think of Qwikster, I do not think of anything related to DVD by mail. The only associations that come to mind are Friendster and Quixtar. It sounds cheesy and cheap and fly-by-night.
I know a lot of non-savvy people probably can't make that connection, but I think the company will make it clear that Netflix is no longer the place for DVDs.