Netflix Yanks Plan to Separate DVD-By-Mail From Streaming Service
"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," says CEO Reed Hastings about the recent plan to create Qwikster.com.
NEW YORK - Netflix reversed course Monday, saying it will not go ahead with a planned renaming of its DVD-by-mail service and instead continue to offer U.S. subscribers unlimited streaming and unlimited DVDs on its website.
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Netflix had announced on Sept. 18 blog that its DVD-by-mail service would start operating at Qwikster.com. "Instead, U.S. members will continue to use one website, one account and one password for their movie and TV watching enjoyment under the Netflix brand," the company said.
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"Consumers value the simplicity Netflix has always offered and we respect that," said Netflix co-founder and CEO 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."
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In a blog post, he said: "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."
Hastings added in the blog post: "While the July price change was necessary, we are now done with price changes."
Netflix's recent price hike and planned services separation was unpopular among consumers and Wall Street. The company's stock was also hit hard, with the company's market value declining 57 percent over the course of two months.