Netflix is backing away from its plans to operate a separate DVD business called Qwikster.
In a blog posting Monday, Netflix CEO Reed Hastings acknowledged that having two websites – one for the DVD business and one for streaming videos – “would make things more difficult" for many subscribers.
“This means no change: one website, one account, one password … in other words, no Qwikster," he wrote.
The decision may help limit the company’s forecasted subscriber losses after Netflix raised its prices last month in a decision that infuriated many customers and has contributed to an enormous drop in the stock price (NFLX: NASDAQ) over the last few months. Shares of Netflix were up $4.57 or 3.9 percent on the NASDAQ as of 12:15 ET.
“All I can say is thank you for listening to your customers and keeping the dvds with netflix instead of switching them to a different website; which would have been a dumb move honestly," wrote Shaunta Dawson on Netflix’s Facebook page.
Hastings’ announcement Monday did not appease everyone.
“Too little, waaay [sic] too late," wrote D.f. Basora on Netflix’s Facebook page. “You should have thought this all the way through before making a move. But everything you’ve done indicates shortsightedness and desperate thinking. I’m keeping the streaming and shedding the DVD all the same. Next time you make a change entertain the concept that not all your customers are so desperate to keep you that they’ll tolerate your scatterbrained crap."
Last month, Netflix lowered its guidance for the third quarter by 1 million subscribers after the company announced a 60 percent price increase for customers who subscribed to both the DVD and streaming services. The company anticipates ending the quarter with 24 million U.S. subscribers, down from 24.59 million in the second quarter.
