Troubled Netflix scraps Qwikster plans

Netflix has backed down from plans to separate its video streaming and DVD rental businesses.

Last month, Reed Hastings, CEO of the company, announced plans to rebrand its DVD business to Qwikster, saying it would operate a completely separate website to the streaming service, meaning customers wanting rental and streaming services would require two subscriptions and receive two bills. The move was in response to criticism from customers that changes to Netflix’s business model meant the company had effectively hiked prices for top tier subscribers. “I messed up. I owe everyone an explanation,” Hastings said at the time.

In a new blog post, Hastings confirmed that Qwikster has been scrapped and Netflix customers will continue to be able to rent DVDs and stream movies using one account. “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. This means no change: one website, one account, one password… in other words, no Qwikster.”

The price changes that sparked the initial wave of criticism from Netflix will remain, Hastings said.