Netflix Abandons Qwikster

Oct 11, 2011

Netflix, Inc. backed out on its plan to split its DVD-by-mail service into a separate company called Qwikster, which was met with customer backlash and unsubscriptions. Netflix originally announced this plan on September 18, adding insult to injury after its 60% price hike in July.

Netflix had projected 25 million users at the end of the third quarter, but reduced that number by 1 million following the price change. According to Netflix's website, its share price has plummeted from nearly $300 the day after the subscription-cost announcement -- an all-time high -- to $111.62 at close of business Monday, October 10.

Reed Hastings, co-founder and CEO, said on the Netflix blog that price changes "are now done." The streaming library has been recently expanded with hundreds more movie titles as well as over 3,500 TV episodes, he added.