Less than a month since making the official announcement, Netflix is calling off plans to divide its streaming and DVD-by-mail services into two separate entities, its co-founder and CEO Reed Hastings revealed today in an emailed statement.
The latter was to be called Qwikster and would offer its services through a separate website while the streaming business maintained the Netflix brand. Besides the confusion generated, a previous price change raised the cost for those who want both services by 60%, causing an outrage among customers that ultimately cost the company about 1 million of its subscribers.
The price change is still in effect, only they are now going to keep Netflix.com as the one place to go for streaming and DVDs. That means subscribers who want both services won’t have to manage two accounts and pay two bills each month, after all.
"Consumers value the simplicity Netflix has always offered and we respect that," said Reed Hastings in a statement. "There is a difference between moving quickly -- which Netflix has done very well for years -- and moving too fast, which is what we did in this case." Defending the July price increase as necessary, Hastings went on to say that the company has vastly expanded its library of available content with hundreds of movies and thousands of TV episodes.
Netflix shares rose as much as 10% in early trading -- their stock had tumbled 62% from its high in July before today.