CEO Explains Netflix Will Abandon Qwikster Plans Prior to Launch
By Rob Scott
October 11, 2011
October 11, 2011
- Netflix has announced it will drop its controversial plan to split its streaming and DVD businesses, taking recent public outcry (and negative Wall Street reaction) into consideration.
- “This means no change: one website, one account, one password…in other words, no Qwikster,” wrote CEO Reed Hastings on the company blog and via email to subscribers. Hastings also explained that the company is “now done with price changes.”
- Ted Sarandos, chief content officer for Netflix, told an industry crowd at MIPCOM in early October that he was “very convinced” the proposed split was “good for the long-term health of the business. And the long-term clarity of the brand.” Hastings had also been quoted as saying the split would be necessary for improving the services in moving forward. “But,” added Sarandos, “we also hear our customers, and we want to make sure we react to that.”
- Netflix’s stock was up 6.8 percent yesterday following the announcement, giving it a market value of $6.57 billion.
2 Comments
Is this news enough to soften the blow for consumers regarding the existing price hike?
Is this news enough to soften the blow for consumers regarding the existing price hike?
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