Netflix has abandoned plans it made last month to split up its DVD-by-mail service and streaming services, noting that the company has been "moving too fast" into the decision.
The company revealed last month that it would be renaming its DVD-by-mail service to Qwikster, while also adding the option to rent video games via the service.
The plan was that, once Qwikster launched, users of the service would be able to upgrade their package to include video games, and order Wii, PS3 and Xbox 360 games for rent.
However, Netflix today announced that it will no longer be renaming the DVD-by-mail service, and that the Netflix website will continue to provide both streaming and DVD rental services.
Netflix co-founder and CEO Reed Hastings noted, "Consumers value the simplicity Netflix has always offered and we respect that."
"There is a difference between moving quickly -- which Netflix has done very well for years -- and moving too fast, which is what we did in this case."
The company was not clear regarding whether or not the plans to provide video game rentals will still go ahead. Gamasutra has contacted Netflix to confirm.
I'm glad it's not splitting... seeing I would have canceled my Streaming. However, if I was a stock holder... I'd be very worried about the people running the show over there.
They cannot be profitable at current pricing. They'll have to do something. 10 bucks a month or whatever for streaming old, mostly crappy flix was fair. Throw in the DVD rentals and there's just no way that can be profitable. They should split business units but not under different names. Most importantly, they should find a way to accelerate getting A+ content on streaming, even at the risk of having to double their price. I would love to cut off cable TV and go Netflix only for 30$/month.
I'll be the lone voice who says that this sucks. Netflix really could have done a lot as an independent subscription for streaming content. And I would have liked to get a reliable mail in service that included games. Oh well!
There is no reason to assume they aren't going to include games. All they announced was instead of splitting off a new site with a new name for the mail-order side of the business they are keeping it all centralized. That in no way directly implies they don't still plan on expanding to games. Just because the plan was to do both at the same time does not mean either one was reliant on the other.
Should have gone and maybe try to acquire gamefly and hulu plus. then separate them by modules at 10 bucks each or 35 dollar for everything, or have a 7.99 a month streaming with ads. Still cheaper than cable.
Before anyone starts the discussion about paying and still have ads. People pay 80plus on cable and most of those channels also have more ads.
Before anyone starts the discussion about paying and still have ads. People pay 80plus on cable and most of those channels also have more ads.