Netflix kills plan to split off DVD rentals to ‘Qwikster’ site

Netflix is abandoning its widely panned decision to separate its U.S. DVD-by-mail and internet streaming services because it would make them more difficult to use. Subscribers will be able to use both services under one account and one password, CEO Reed Hastings said Monday in a blog post. Investors saw the reversal as an Oscar-worthy […]

Netflix is abandoning its widely panned decision to separate its U.S. DVD-by-mail and internet streaming services because it would make them more difficult to use.

Subscribers will be able to use both services under one account and one password, CEO Reed Hastings said Monday in a blog post.

Investors saw the reversal as an Oscar-worthy move, sending the stock up $8.63, or 7.4%, to $125.84 in morning trading after rising as high as $128.50.

Less than a month ago, the Netflix said it would split the DVD rental business off on a new website, to be called Qwikster.

Subscribers howled at the move, saying they saw Netflix as a destination for movies in general and didn’t want to manage two accounts.

“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,” Hastings said in the blog post.

In July, the company said that customers who want streaming movies and DVDs will have to pay for them separately. The Qwikster announcement was a follow-up to that change. Analysts saw it as a way for Netflix to distance itself from the older DVD business, which has less future potential than Internet streaming.

Even with Monday’s premarket bounce, Netflix’s shares have been savaged by the price change and the Qwikster initiative. They’ve lost more than half their value since July.

Media Articles

30 Under 30 is back with a new name, new outlook

No more age limit! The New Establishment brings 30 Under 30 in a new direction, starting with media professionals.

As Prime Minister, Kellie Leitch would scrap CBC

Tory leadership hopefuls are outlining their views on national broadcaster's future

‘Your Morning’ embarks on first travel partnership

Sponsored giveaway supported by social posts directed at female-skewing audience

KitchenAid embraces social for breast cancer campaign

Annual charitable campaign taps influencers and the social web for the first time

Netflix debates contributions with Canadian Heritage

Netflix remains wary of regulation as some tout 'Anne' and 'Alias Grace' partnerships

Canadians warm up to social commerce

PayPal and Ipsos research shows "Shop Now" buttons are gaining traction

Online ad exchange AppNexus cuts off Breitbart

Popular online ad exchange bans site for violating hate speech policy

Robert Jenkyn is back at Media Experts

Former Microsoft and Globe and Mail exec returns to the agency world

2016 Media Innovation Awards: The complete winners list

All the winning agencies from media's biggest night out!