Netflix Abandons Qwikster, Will Continue Sending DVDs by Mailby Andrew Cunningham on October 10, 2011 8:30 AM EST
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.