Netflix (NFLX)
has abandoned its unpopular plan to spin off its DVD-by-mail service
and rename it Qwikster, saying it will continue to offer both services
through its flagship web site.
The movie renter told customers in an email
and blog post on Monday that they will continue using "one web site, one
account and one password" under the Netflix brand for both streaming
and DVD-by-mail services.
The decision comes just three weeks after
the company initially revealed plans to separate its DVD service and
operate the brand under Qwikster.com. It had intended to use Netflix.com
for its streaming-only service, forcing dual-service customers to use
two separate accounts.
That decision proved to be just the latest
among a series of missteps for the Los Gates, Calif.-based company,
which has seen its share price drop 60% since July when Netflix
announced a price increase for subscribers using both streaming and
mailed DVD services. Previously, Netflix users had been able to pay one
lower price for the combined service. Read Here