Netflix Abandons 'Qwikster'

Netflix Abandons 'Qwikster'

NEW YORK (TheStreet) — Netflix (Stock Quote: NFLX) decided to drop its plan to split off the company and rename its DVD business "Qwikster."

The company will keep its DVD-by-mail and its streaming services under the Netflix umbrella.

"It is clear that for many of our members two Web sites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs," CEO Reed Hastings said in a Netflix blog post.

Hastings went on to say: "While the July price change was necessary, we are now done with price changes."

Netflix received plenty of grief after it announced the split last month, with subscribers already irate over higher prices and the possible loss of Liberty Starz content.

"The latest move shows they are acting out of desperation," said Janney Capital Markets analyst Tony Wible.

In September, Netflix slashed its domestic subscriber outlook, expecting to report a decline of about 1 million customers in the third quarter. But this revised guidance came before the announcement of the company split-up, leaving investors wondering just how many subscribers were lost during the quarter.

It has become clear that Netflix is now ready to do whatever it takes to reverse its bad wrap. Last week, the company announced the addition of new streaming television content. It is also rumored that Netflix may bring back new episodes of Arrested Development.

But Wible remains cautious on whether these moves will really change consumer perception and woo back lost subscribers.

Netflix's split sent many customers packing, but this new move may prove how it's listening to customers and may actually be on their side. If you're not convinced, check out MainStreet's Dropping Netflix? Here Are Your Options!