Netflix abandons plan to spin-off DVD service

Netflix has reversed its decision to spin-off the company’s DVD delivery option into a new service called Qwikster, according to the New York Times. “Consumers value the simplicity Netflix has always offered and we respect that,” Netflix chief executive Reed Hastings said 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.”

On September 18, Netflix announced its intention to separate the company’s online streaming and DVD-by-mail services. The plan attracted criticism from users and prompted the price of Netflix stock to slide.

Many Netflix customers had already been disturbed by a recent price increase which raised the cost of having both online streaming and DVD-by-mail delivery from $10 to $16 a month. That increase is unaffected by today’s announcement.

Comments (123 total) Add your comment
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  • endo

    So the Qwikster domain is now available for my new ready-made pancake mix?

    • Loni

      Love it!

      • jack

        My best friend has just announced her wedding with a great man who is a cele+brity!
        They met-via { millionaireluv_С’σм }
        It is nice club for rich men or pretty girls mate.
        You do not need to be wealthy or famous, but you can meet your true love, it’s worthy a try.

      • Ba ba Hoey

        Darn I was looking forward watching some movies from Qwikster and enjoying my New Coke.

      • Netflix

        WE DON”T KNOW WHAT WE ARE DOING..AAAAARRGGHH

      • apple lover

        @Ba ba Hoey um I think u took someone elses joke. conan o briens to be exact… kinda strange/awkward

    • AmyLeigh

      …or your adult site.

      • Netflix

        Nobody actually pay for porn on the internet. That’s why we don’t have it.

    • LOL

      So where do you rent DVDs from now? Netflix again? The story doesn’t answer the logical question.

      • Dr. Linus

        That’s actually true…they don’t mention that part and it happens to be a big part of the story.

      • Netflix

        those gosh darn Redbox vending machines.. there is your answer stupid

    • Chris

      HAHAHA

  • joe luck

    Guess the stoner with the Twitter handle wanted too much money.

    • Rom

      I think you cracked it, joe luck!

      • Netflix

        Does anyone know how to run a successful company anymore? We really don’t know what to do anymore. We are idiots.

  • orville

    Oh, thank God. One glimmer of sanity in the ridiculousness of it all so far. Still doesn’t mean that I’ll stay with them. Unless the streaming gets a whole lot better *soon* (both in viewing choice and technical glitches) I’ll be dropping it like a hot potato.

    • SaraS

      Agree 100%.

      • Serena

        You don’t even need to stick it in a card, you can just print it and fold it into its own card. I always keep Netflix in my back pokcet for a last minute gift.

      • Jarbas

        I read a few comments on their blog yareesdty. One poster in particular sounded like he might have some business sense. His letter to the Netflix’s CEO really hit some good points about the choice of splitting the company up.Netflix has become a household name. Now they want to introduce another one!This is the perfect time for any one of their competitors to step in and take over the top spot.

  • KatyKatz

    Netflix looks like it’s being run by a bunch of morons. Wait, no, now I’ve changed my mind… Yeesh.

    • Cameron J

      So lemme get this straight. You are all b**ching about them changing their bad decision that you were all b**ching for then for not changing. What a sad, unsatisfiable group you are.

      • AN

        It’s not that at all. It’s the heart of the matter. To have a major price increase for a product that is sub-par at best is what is ticking everyone off. The split between DVD/Streaming was just silly. The reversal is not surprising, but just another lame move in what is now becoming a long list of lame moves.

      • endo

        As a NFLX shareholder, I absolutely am unsatisfied. And will continue to b*tch. Making stupid business moves and then whiplashing the customers around like this when they could have easily done private focus groups to come to the same decision is a sign of horrible management.

      • Kevin

        I think we have a right to criticize. Businesses usually take months, if not years, to test new ideas with their customers before making major changes. The Qwikster idea was a HUGE change that should have been vetted more before it was announced. Since they DID announce it, they should have stuck with it despite its lack of popularity. If they stood by their decision, at least it shows some confidence in their own product and decision-making process. By backing away from Qwikster before it was even rolled out, Netflix just proves that they have no long-term plan… that makes investers even more nervous than unpopular changes to the business-model.

      • Jonathan

        Yes, Netflix is sooo subpar. There are so many comparable services that are much better for sooo much cheaper. Give me a break, all of you are so whiny and entitled.

      • Netflix

        We just thought that you sheep would pay our unjustified fee increases, and would not care, just like you don’t care about anything else in your lives. My bad.

      • Mike

        Backing away from Quikster was kind of brilliant… Netflix raised their price (hugely unpopular) then introduced this half baked rebrand of the DVD service to “Quikster” (also very unpopular). Now, due to ‘customer outcry’ or whatever they are calling it, they abandon the rebrand… Local news lead off with stories like “The customer is always right, at least according to Netflix” (which seriously just aired in DC). Some people will rightfully still complain, but many will be satisfied that they are ‘being listened too’. Netflix gets less heat, and did nothing but take a way a hypothetical negative which was never actually enacted. Its like your boss telling you during salary negotiations that your losing 3% and a week of your vacation, and after a few weeks of complaining you get that week of vacation “back”, like it actually had gone somewhere. You feel you won, yet you still lost 3% of the salary (or in the Netflix case, there is still a price increase).

      • Netflix

        Nah, stop acting all intelligent and like you guys care. You want to pay higher fees. Don’t encourage people to start thinking for themselves, that would ruin this business.

  • arnel pineda

    The only thing that can save the Netflix brand at this point is a resurrected Steve Jobs

    • ^

      Bring back Steve Perry

  • Eric P

    I dropped Netflix at the beginning of the year and have never been happier. I would find myself forcing myself to watch things because it was crittically acclaimed or ppl said it was good, now i just watch what i want and i realize i dont have to watch everything just because it’s “good”.

    • Adalynn

      Some of us don’t need to drop Netflix to realize that.

    • Mariah

      That makes the kind of sense that doesn’t.

      • Kevin

        Haha! Agreed. Nonsensical ramblings from Eric P.

      • S.

        I have to remember that line Mariah. Great one.

      • Netflix

        We have hired a new spokesman to help straighten this mess out:

        youtube.com/watch?v=Ik0yz5Jo4Os

      • T

        Haha that was one of the cutest things that I ever heard

      • Dave

        LOL, Mariah, that was perfect. I’m gonna have to remember that line.

      • @Mariah

        nice buffyism

    • Westley

      I hate crittically acclaimed movies. Me watch 3 Ninjas. Me like kickboxing. Eric P. me hero.

      • Em

        3 Ninjas IS critically acclaimed. Cult Classic. I am such a Colt.

      • mmm

        don’t you mean Dolt?

  • Susie

    So, does this mean they are still adding games, or not?

    • ^

      That was my only question.

    • DrAstroZoom

      My guess is no, which is fine with me. I want flix from Netflix, not games.

    • mmm

      you can get games with Steam online

  • Craig

    Wow, so someone over there finally came to their senses. Too long enough.

    • Amal

      Netflix has been scaling back their atfiliafe program big time. They drop networks and drop atfiliafes faster than the can sign up lately.

  • chocolateislove

    Thank god.

  • Fireball

    Glad to hear this. So much easier to go to just one site. Our voice was heard after all. Now about the pricing . . . .

  • Kate

    I have more respect for a company that actually listened to its consumers.

  • pnkl8y

    I like Netflix and I am glad they chose to listen to their customers, but I am wondering why they thought this was a good idea in the first place? Two sites? Two payments? Two queues? I dropped the DVD portion, b/c I could no longer could justify the cost and my queue “instantly” went from over 400 titles to 73. The really need to beef up their instant catalog quickly!

    • Ana

      There’s a story in the full AP writeup that Hastings was hosting some investors and they were apparently giving him a lot of grief over how things have been handled lately. Also, they’ve been dropping more subscribers than they expected and the Qwikster announcement only made things worse. This isn’t a sign that they care what their customers think so much as it’s a sign that they care about the bottom line.

      • Jax

        Show me a business that puts their customers before the bottom line and I will show you someone who is going out of business soon. Seriously, what part of business don’t you people understand. It’s about the money. It’s always been about the money and it always will be. Companies that appear to be putting their customers first really just have a better PR department.

      • DRG

        Without customers there would be no bottom line.

      • @DRG

        Thanks for the common sense. Don’t think Jax sees the correlation between businesses making money and people paying for the products businesses produce. We vote with our wallets, and Netflix was the first (hopefully of many) businesses to realize this.

      • Netflix

        You guys don’t have common sense anymore. What are you guys talking about? Look, just pay the higher fees, and accept that you lose. And you keep losing, so just accept it.

      • Katy

        on two seperate weeistbs is actually a bad thing.a0 This statement just comes a few weeks after announcing that they wanted to launch Qwikster which makes you wonder why they couldn’t figure this out

  • Straight garbage

    Netflix is crap for suckers. Ripoff City. Bad company with foolish customers. *Guffaws*

    • Esox

      Oh yeah, HUGE rip off. For 8 bucks a month, I get around 6 movies that I’ve never seen and are hard to find. I can also keep my choices organized instead of binge shopping at the likes of blockbuster. Guess I’m a sucker.

    • Jay

      Well, I know Netflix is anything but a rip-off, I have shopped around. I know I am not foolish, And netflix provides a service that has absolutely nothing to do with poo for lollipops

      Your entire post is a lie, but thanks for playing

    • Bob

      The best deal I have found online is bittorrent.. You can’t beat free movies. I don’t know what you people are so concerned about. Get over it. Come join us, the water is fine.

  • SteveP117@comcast.net

    Too little too late – I’m OUT!

    • Netflix

      You’ll be back. And so will you!

      • Roma

        There is a program that you put on your PC and you can watch alot of ceannhls on the Wii, XBOX and PS3. Hulu is one of the ceannhls! The program is called play on and is very easy to use It was free when I got it! As for DVD and Blu-Ray I have been using Redbox more than anything and now they do the games also I know that there is not the selection on Redbox as there is on Netflix but I am willing to deal with it. You got my number techgeekdad give me a call and I will tell you more about the program maybe you can do a write up on it!

  • Shannon

    What a stupid name. Who was the real stoner?

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