Netflix nixes Qwikster plan

Tue., Oct. 11, 2011

NEW YORK – On Monday, Netflix said it would reverse a previously announced decision to put its DVD-by-mail and Internet streaming services on separate websites, a plan that was widely derided by Netflix subscribers.

People will be able to use both services under one account and one password, CEO Reed Hastings said Monday in a blog post.

Netflix Inc., however, plans to stick to pricing plans introduced in June, which means subscribers are now paying separately for streaming service and mailed DVDs. That change amounted to a price increase for most subscribers.

Less than a month ago, Netflix said it would split the DVD rental business off to a new website, to be called Qwikster. Subscribers howled at the move, saying they saw Netflix as a destination for movies in general and didn’t want to manage two accounts.

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. That would be by far the worst downturn in the company’s history. Netflix reports final figures on Oct. 24 for the quarter that ended in September.

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Netflix nixes Qwikster plan

Jesse Tinsley

Jim Meehan

Molly Quinn

Rob Curley

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