Netflix Abandons Qwikster, Quiet on Game Rentals

Netflix has decided that separating its DVD rental business from its streaming business might have been a bad idea after consumers gave them a very public verbal thrashing. Netflix CEO Reed Hastings wrote on the official company blog this morning that Netflix has abandoned that idea, instead keeping everything the way it was before. One thing we do not know is whether Netflix will move forward with its plan to rent video games to its subscribers because Hastings doesn't mention that in his post.

"It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs," he wrote on Monday.

Hastings went on to defend the price change in July and noted that this will be the last time they adjust prices for awhile, but noted that it was a necessary change. Investors seem to agree with consumers; this morning the stock climbed 3.5 percent as of this writing. The stock dropped nearly 40 percent after the company announced its plans last month.

While some analyst are still worried about the company – particularly the CEO who seemed to cave in too easily to all of his critics, most are bullish on the company's future – at least in the foreseeable future.

Source: WSJ

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    DanHoyt says:

    I think the stock dropping may have been the real reason for this statement, not necessarily the "verbal thrashing." I do think that may have been a reason, I just think it was not the main reason.

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