October 10, 2011
Netflix Dropping Qwikster Idea
Netflix announced on Monday that it has decided to nix its idea to split the company into two separate websites.
The company said a few weeks ago that it would split the DVD rental business off to a new website called Qwikster and keep the streaming service as Netflix.However, CEO Reed Hastings sounded off a blog post on Monday to announce the reversed decision.
"It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs," Hastings said.
Netflix originally announced the move to use Qwikster just a few months after it changed its pricing plans.
In July, the company decided to increase its prices for most subscribers, causing users to have to pay separately for the streaming service and mailed DVD service.
Netflix is still sticking with its new pricing arrangement, despite deciding to go ahead and nix the two websites idea.
The company had 24.6 million subscribers at the end of June, but it said last month that it expected about 600,000 to leave by the end of September because of the price increase.
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