Monday, October 10, 2011
Netflix Drops Qwikster Plans
Online video streaming service Netflix, in a dramatic reversal, said this morning that it will not be splitting the company into two, and will continue to offer both DVDs by mail and streaming movies. In a statement, the firm said it "moved too fast" in announcing the move a few weeks ago, where it said it would split its DVD by mail service into a new company called Qwikster, and continue on the path of streaming video with Netflix. The drama at Netflix has some strong links to Hollywood's various studios, who have been wary of online streaming video services and their impact on DVD sales. Netflix itself is facing some serious upcoming negotiations with the studios on its current video streaming, which was made possible by a deal with cable channel Starz made in 2008. However, Starz told Netflix in September that it will stop providing those video rights next February.