Netflix to Keep Services Together (Goodbye, Qwikster)

Publication: The New York Times

Title: Netflix, in Reversal, Will Keep Its Services Together

Article by: Brian Stelter

http://mediadecoder.blogs.nytimes.com/2011/10/10/netflix-abandons-plan-to-rent-dvds-on-qwikster/?ref=media

Just a couple of months after announcing that Netflix would be splitting into two services, Netflix retracted it’s decision and revealed that the DVD-by-mail service and the online streaming service would be kept under one name and one website.

The statement from Netflix came after customers expressed discontent about the way Netflix has been handling accounts and decision-making.

Apparently, in making the decision to split the services, Netflix misinterpreted consumer needs.  According to the New York Times:

“Netflix said it never actually separated the services or started Qwikster. But the planned breakup was rooted in Mr. Hastings’ belief that DVDs and online streams have different cost structures and different consumer demographics.”

In the end, the reversal is probably for the best.  Netflix has chalked this whole incident up to moving “too fast.”  They are in the process of building up their online streaming service and inking deals with TV networks as well as production companies.

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