Netflix abandons plan to spin-off DVD service | EW.com

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Netflix abandons plan to spin-off DVD service

Netflix has reversed its decision to spin-off the company’s DVD delivery option into a new service called Qwikster, according to the New York Times. “Consumers value the simplicity Netflix has always offered and we respect that,” Netflix chief executive Reed Hastings said in a statement. “There is a difference between moving quickly — which Netflix has done very well for years — and moving too fast, which is what we did in this case.”

On September 18, Netflix announced its intention to separate the company’s online streaming and DVD-by-mail services. The plan attracted criticism from users and prompted the price of Netflix stock to slide.

Many Netflix customers had already been disturbed by a recent price increase which raised the cost of having both online streaming and DVD-by-mail delivery from $10 to $16 a month. That increase is unaffected by today’s announcement.

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