(Image Source: Netflix)

BY EVAN BUSH 

ANCHOR CHRISTINA HARTMAN

Apparently Netflix was listening -- after a trifecta of customer outrage, analyst criticism and falling stock prices, the company announced it would not be separating their DVD rental service from its online streaming service.


An MSNBC analyst says he expects the move to be well-received.

“One stock that’s going to do really well at open is Netflix. A huge U-turn. From the CEO Reed Hastings, they’ve just announced that they’re not going to split off the DVD service from the streaming service. Remember they were going to call it Quicksilver and charge you a second subscription. Well the cancellations have just been rolling. So a major U-turn from them. You will be able to get both the streaming service and the DVD on Netflaix on the same site for one subscription.”

The name of the site was actually not Quicksilver, but Qwikster. But well, what does it matter now? Netflix CEO Reed Hastings explains why the company decided to kill its offspring before it was even launched.

“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.”


But one thing that won’t change is the price. Netflix hiked its rates by about 60 percent to use both streaming and DVD service, then decided to split Qwikster off. Still, The New York Times’ Brian Stelter says Netflix hopes to stop the bleeding.

“Netflix expected some of its 25 million subscribers to cancel in the wake of the price change, but the cancellation rate exceeded expectations. The company said in mid-September that it expected to report a quarterly decline of about one million in the third quarter, which ended on Sept. 30.”

Although analysts, writers, and the market seemed to give the idea warm reception, ZDNet says Netflix has a ways to go before stabilization, because the market Netflix pioneered is beginning to look increasingly cloudy.

“If Netflix looks a bit jumpy that’s because it should be. The stakes are high for Netflix, which increasingly looks like it’s amateur hour after years where it could do little wrong. The company has to fend off Amazon, land streaming content deals and deal with Echostar, which is hellbent onbringing Blockbuster back to its glory days.”