A few weeks back we all woke to the very odd email written by Reed Hastings. One in which he apologized for previous actions but did not reverse any of them. One in which he announced the separation of the DVD service into a new Qwikster company..
Today we get the news break that it was all a bad dream. Qwikster is dropped, DVD’s will continue to be on the Netflix service. Perhaps the thousands of posts critiquing Netflix missteps prompted them to come to their senses. Thank God. Complete story below.
The earlier plan to put movie and television DVD rentals on a different website, which never went into effect, was one of several missteps in recent months that have helped drive shares of the one-time Wall Street darling down about 60 percent since July.
The move would have forced customers of both streaming and DVD options to visit different websites and maintain different accounts for each subscription. Customers also would have received separate credit-card charges.
The move comes as Netflix deals with a customer backlash that began in July when the company announced it was raising prices by as much as 60 percent, or $6 a month, for some customers who wanted to keep DVD and streaming subscriptions.
With cancellations rolling in, Netflix cut its third-quarter forecast by 1 million subscribers in September. The company said it expects to have 24 million subscribers at the quarter’s end.
Hastings later apologized for the handling of the price increase but is sticking with that decision as the company works to build its online movie and television streaming service.
(Editing by Anshuman Daga)