Netflix not separating DVD and streaming video service

Oct 10, 2011 at 3:00 p.m. ET

Netflix announced that it is no longer pursuing its plan to move its DVD service to a new company called Qwikster.


Netflix is listening to its customers, it seems. Today, Netflix announced that it was no longer pursuing plans to split its DVD service away from its streaming video service.

Netflix shared its plans to create Qwikster, a new company to handle its DVD mail service, last month. The announcement was met with commentary from unhappy customers, many of whom were still displeased about the price hike. However, Netflix listened this time.

Netflix CEO Reed Hastings wrote a blog post today, saying that customers had made it clear that having to obtain DVDs from one website and streaming video from another would be too difficult. "This means no change: one website, one account, one password… in other words, no Qwikster," he wrote.

Back in July, Netflix announced a price hike that angered many customers. The company's Facebook page was flooded with comments from dissatisfied subscribers, many of whom promised to take their business elsewhere.

Hastings acknowledged that price hike in his post today, stating, "While the July price change was necessary, we are now done with price changes."

So, two pieces of good news for Netflix subscribers: You can expect your subscription fees to Netflix to remain unchanged and you'll still get your DVDs from Netflix.

>> Tell us: Are you still a loyal Netflix customer, given the recent price changes and planned (but now cancelled) new DVD company?