Netflix said Monday it would abandon its plan to separate its DVDs-by-mail business from its online streaming service.
Less than a month ago, Netflix said it would split the DVD rental business off to a new Web site to be called Qwikster. In an attempt to bounce back from diminishing membership and dipping stock prices, Netflix had decided to put in place the new strategy to separate the company's DVD by mail service and the growing segment of digital on-demand streaming.
Netflix Chief Executive Reed Hastings said Monday that he decided to scrap the proposal to create a stand-alone DVD service under a new name, Qwikster. He said having two distinct subscription businesses, with separate billing and recommendations would be too difficult for customers who craved simplicity. “It is clear that for many of our members two Web sites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs,” Hastings said in the blog post.
People will be able to use both services under one account and one password, Hastings added in the blog post.
The Qwikster announcement was a follow-up to the July price change. Netflix had 24.6 million subscribers at the end of June, but it warned last month that it expected a net 600,000 to leave by the end of September because of the price increase.
Netflix started its subscription-based digital distribution service in 1999 and by 2009 it was offering a collection of 100,000 titles on DVD, surpassing 10 million subscribers.