Netflix Drowns Qwikster in the Stream - NBC4 Washington

Netflix Drowns Qwikster in the Stream

Los Gatos-based company announces it will stay one company, keep its name



    Netflix Drowns Qwikster in the Stream
    Netflix is trying to get its house back in order by announcing it will not spin off into two companies after all.

    Netflix is hitting rewind on an idea to split the company in two.

    Monday the California-based movie rental company continued a string of recent strange moves by announcing it would no longer split itself into two entities: Netflix and Qwikster.

    The move was initially announced last month in response to customer anger over a plan to raise monthly rates to $16 for subscribers who wanted to be able to both stream and rent physical DVDs.

    Netflix CEO Reed Hastings introduced the idea of splitting his company in two, with Netflix being a streaming only company and Qwikster becoming the mail order DVD business.

    But a stream of bad press -- including a "Saturday Night Live" spoof -- and continued customer backlash has forced Netflix to change its mind again.

    "We underestimated the appeal of the single web site and a single service," Steve Swasey, a Netflix spokesman, told The New York Times. "We greatly underestimated it."

    Netflix's quick about face comes as the company says it will try to slow down its moves and decision-making.