In a terse blog post this morning, Netflix CEO Reed Hastings announced that Netflix no longer planned to split its streaming and DVD-by-mail businesses into two companies with two distinct web sites, citing that such a move would make things "more difficult" for consumers.

This ends the drama that began last month, when a much longer and occasionally apologetic blog post announced that Netflix would be splitting into two companies: the first, still dubbed Netflix, would handle the on-demand streaming, while a new company, Qwikster, would now handle the mailing of DVDs. Consumers, already smarting from recent price hikes, objected to the idea of having two entirely separate accounts, sites, and queues to manage where there had previously been one, and condemnation of the move was near-universal.

As such, the company is staying as it is for now, and the Qwikster URL now redirects to the Netflix homepage. Hastings also claims that Netflix is now "done with price changes," though he made no mention of the Gamefly-style video games-by-mail service that was to launch with Qwikster.

Source: Netflix

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  • Lunyone - Monday, October 10, 2011 - link

    Still not going back, so this changes nothing for me.
  • Skott - Monday, October 10, 2011 - link

    Agree. I was going to go with Netflix when this change of policy was announced. I held off to rethink things and planned to go with Block Buster instead. I'll still go with BB despite this change of Netflix's policy. Netflix alienated many people with their decision and they will never get some of them back.
  • seapeople - Monday, October 10, 2011 - link

    Don't worry, after a few months of Blockbuster you will be back.
  • augiem - Monday, October 10, 2011 - link

    I don't see what is so bad about Netflix even at the new prices. Compared to the other options out there, they still have the best selection at the lowest price. Compared to cable it's a total joke. And don't forget, even with cable you're paying to watch 20+ minutes of commercials for every hour of TV.

    In my opinion, Netflix is too good of a deal. It's still fairly early on in the online streaming media game. Give it 10 years and I doubt we'll see anything for less than $60/mo WITH commercials out the wazoo. I've seen it happen way too many times in my life... something new comes out gives you a great value for your dollar, increases in popularity, quality goes down, content goes down, prices go up. The old bait and switch. Sheesh, it's pretty much the standard business model these days for internet startups. Look at Hulu. I'm sure Pandora and Spotify have the same plans up their sleeves. Give away the world to get em hooked, reel em in and hit them with a good dose of reality.

    For everyone out there who thinks they should by right get $10/mo unlimited movie and TV content for their entire houseold, a full selection of all the newest content, all commercial free, you're living in a fantasy land. And I'd like a free Ferrari. Please retake basic math or download bittorrent.
  • Zak - Monday, October 10, 2011 - link

    Thanks for sharing...
  • OoklaTheMok - Monday, October 10, 2011 - link

    Netflix shareholders would be smart to fire Reed Hastings. Over the past year, he has shown that he is incompetent. Drastic price hikes, lost Starz, announced the splitting of the company, all resulting in significantly reduced shareholder value.
  • EnerJi - Monday, October 10, 2011 - link

    In fairness, we don't know the full story. Most likely, these moves are as a result of back-room negotiations with content holders and are an attempt to license streaming content at reasonable rates. Perhaps something's changed with those negotiations that no longer makes splitting the company a necessary step.
  • Alexvrb - Monday, October 10, 2011 - link

    True, we only catch bits and pieces of what is going on.
  • IlllI - Monday, October 10, 2011 - link

    reminds me a lot like hp these days
  • blowfish - Monday, October 10, 2011 - link

    perhaps a lot of things, but the fact remains this seems like an almighty foul-up and Hastings ought to go.

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