ForexTV NewsDesk | October 11 2011 9:59 EDT
ForexTV.com (New York) by Sterling Wong
In the latest twist to the drama that has been Netflix’s business decisions, the online company announced Monday that it will not be spinning off its DVD mail-out services into a new company called Qwikster. The news reverses Netflix’s decision made a short three weeks ago to set up Qwikster.
“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,” posted Netflix CEO Reed Hasting on the company’s official blog. “This means no change: one website, one account, one password… in other words, no Qwikster.”
Netflix had realized that it had rocked the boat too swiftly and angered many subscribers in trying to branch off its DVD service into a new company. The company emailed subscribers who recently canceled their accounts to inform them of the reversal Monday morning.
Though the announcement comes off as indecision on Hasting’s part, many analysts praised Netflix for responding to customers’ feedback.
Richard Greenfield, a media analyst for BTIG Capital, said in an e-mail message that Monday’s news was the “necessary reversal of a bad decision,” according to the New York Times.
“The key remaining question,” he said, “is ‘Why did they make the Qwikster decision in the first place?’
The 60% price hike that Netflix announced in July will not be changed, Hastings said, but he also added Monday that Netflix was “now done with price changes.”
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