Netflix sobers up, cancels Qwikster spin-offs

Netflix sobers up, cancels Qwikster spin-offs

Netflix has announced that, as the cold harsh light of morning -- and likely customer sentiment analysis -- hit them, they're reversing their previous decision to spin off their DVD mailer business into Qwikster. This means iPhone, iPod touch, iPad, and Apple TV Netflix in the US can retain a single site for all their account mangeament, ratings and reviews. Re-un-de-unified CEO, Reed Hastings:

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.

While the July price change was necessary, we are now done with price changes.

That or this has all been some elaborate plan by Hastings to be named CEO of HP...

Source: Netflix

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Rene Ritchie

EiC of iMore, EP of Mobile Nations, Apple analyst, co-host of Debug, Iterate, Vector, Review, and MacBreak Weekly podcasts. Cook, grappler, photon wrangler. Follow him on Twitter and Google+.

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Reader comments

Netflix sobers up, cancels Qwikster spin-offs


Now this is a guy (CEO) who should go back to the mail can investors have confidence when he changes ANY (good or bad) financial plan every 2 months...what's next guy?

Now would be the perfect time for another company to come in and steal their market share... or maybe people would just wise up and buy an Apple TV

I'm looking forward to watching Netflix Streaming on my Apple TV, which my wife and I will be gifting to ourselves when the ATV3 comes out :-)

Thanks for bringing up Apple TV as an alternative to Netflix. I currently neither, but I'm toward some sort of digital streaming alternative to the high prices of premium cable. Can you compare/contrast Apple TV to Netflix for those of us who don't know, please? Thank you.

At least they were smart enough to realize they were making a mistake before they totally went through with it. They could have avoided this by asking me before they made any announcements. I'm still sticking with netflix over cable.

Not that we have Netflix over here in the UK anyways.. but what a stupid idea it was in the first place!
Sure, I can see physical DVD rentals are going down the tube, and that Netflix may have needed to spit the business, but I think they could have kept them both as Netflix, and kept a single point of access for it.
Changing the name would have just destroyed their physical DVD rentals business.
It's all about brand awareness people!

There were always two reasons for Qwikster:
1) So that the DVD business could wither over the next several years without harming the stock price of the parent company.
2) So that Netflix could get around the 1988 Video Privacy Protection Act, which forbids the release of consumer data on video sales/rentals in most cases, but which may not apply to streaming.
1 has been rendered moot by the immediate, negative reaction to the Qwikster announcement itself, and, as for #2, Netflix probably realized that it is more cost-effective to lobby for a change in the law, especially since they will likely have allies in Amazon, Apple, Blockbuster, Facebook, and Google.

Apotheker never had it so good...11 months on the job, dropping HP stock 47% in the process and still walking away with over $34 Million. Can I be the next CEO, please?? I'm sure I can do just as well!

Going to a different company is a great idea and that is what I exactly did. I went with Blockbuster and I love it! I have the Blockbuster Movie Pass through my provider/employer DISH Network for only $10 a month. For new subscribers you can get it free for 12 months. I get streaming, DVD rentals, in-store exchanges, games and so much more. I get Blu-ray DVDs and games at no extra charge and I also get new releases 28 days before Netflix offers them. I am so happy I made the switch when I did.

Hey there! I could have sworn I've been to this website before but after reading through some of the post I realized it's new to me. Anyways, I'm definitely glad I found it and I'll be bookmarking and checking back often!

I have to say that for the last couple of hours i have been hooked by the amazing articles on this blog. Keep up the great work.