October 10, 2011
Remember Netflix’s September announcement that it was splitting its business into two? Yeah, forget about it. The video giant announced today that it would remain one company and not spin off its DVD into a new entity called Qwikster. Says Netflix’s Founder and CEO Reed Hastings:
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. This means no change: one website, one account, one password… in other words, no Qwikster.As you may recall, Netflix has been highly criticized for July price increases that doubled the price for many customers who wanted DVD rentals and streaming. Because of that, the company lost 600,000 customers in the quarter ending September.By changing Netflix’s DVD delivery service to something new called Qwikster, the company was hoping to change the subject away from the price increases. Today’s announcement just muddies the water even more, don’t you think? Instead of changing names and raising prices, perhaps the company finally figured out what customers want are more streaming options and less talk. Thoughts?