After announcing the price rising and the split between the two services in provided, Netflix, which has lost hugely on the stock market in the last months, plans to return to its initial functioning. It seems that the pre-Qwikster era was far more beneficial for both the provider and the customers.
According to an Associated Press report, Netflix has abandoned the Qwikster plan. The company will not split the two services it provides – online streaming and DVD rentals. Customers have shown no interest whatsoever in making two accounts and having to manage them at the same time, and more than that, in paying more than before on the same services. As a result, the price of the Netflix shares on the stock market has dropped to half since July.
The Apocalypse threatened to swallow more of the share’s value, so something had to be done. At one point, Netflix CEO, Reed Hastings, took action. On Monday, he announced in a blog post, that the company plans to get back to the original service pack it provided. “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”, Hastings wrote. As a result, the shares rose with 7.4 percent, to 125.84 dollars.
The Qwikster plan was announced in September, more than a month after the announcement regarding the separate payment for the two services. This summer Netflix let its customers know that they will actually pay 60% more on the same services and that they have the possibility of opting for just one of them. That caused the first wave of service cancellations. Then, after the launching of Qwikster, the company lost more clients.
Investors consider the latest move of Hastings an Oscar-worthy one.