Netflix drops controversial Qwikster plan
October 10, 2011
Netflix, the country’s leading movie rental business, has decided to drop their controversial plan to create two separate websites—one for DVDs and one for streaming. [LATimes]
However, a recent price increase that led to a backlash from consumers and a slide in the company’s stock price remains in place. In July, Netflix dropped a $9.99-a-month plan that let customers watch an unlimited number of movies online and rent one DVD at a time. Now subscribers who want that combination must pay $15.98 a month—$7.99 for movie streaming and $7.99 to receive discs in the mail.
“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,” Netflix announced in a press statement Monday morning. “This means no change: one website, one account, one password…in other words, no Qwikster.”
The Qwikster move, announced last month, seemed only to further confuse and disturb customers and investors.
Netflix, which experts say drove video stores out of business during the last decade, has been trying to stem a massive customer exodus that began last summer when officials forced customers to choose between streaming and DVDs—or pay a higher price for both.