Streaming is most valuable when DVD is (a) there as a backup, and (b) managed with the same system.
Netflix has seriously decreased the value of their streaming offering by separating out the DVD and de-integrating their systems.
There is basically no reason to pay for Kwikster now (terrible name BTW), and the streaming is now an extra cost. We'll have our kids use Amazon Prime, which we already pay for. They're much less choosy for content anyway, and it cuts off another monthly bill.
Someone inside of Netflix should have had the balls to tell your CEO this was a stupid idea and customers would hate it.