Netflix Backpedals On Qwikster Service
STEVE INSKEEP, HOST:
NPR's business news starts with Netflix trying to change back.
(SOUNDBITE OF MUSIC)
INSKEEP: Netflix says today it's going to reverse its decision to split off its DVD-by-mail rental service. A spinoff called Qwikster was to be the DVD arm of the company, while Netflix would offer content via streaming. That change was announced just one month ago, but subscribers quickly and vocally derided the idea of Qwikster, saying they did not want to have to manage two accounts, two websites, two passwords.
And so Netflix cofounder and CEO Reed Hastings says: "There is a difference between moving quickly and moving too fast, which is what we did in this case," unquote.
Netflix, by the way, has over 25 million members, still a very big business, but the market made its feelings known about the company's moves in no uncertain terms. Since July, Netflix shares have lost half their value. This morning, the stock has opening sharply higher.
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