It seems that Netflix cannot make up its mind about what to do to itself. Recently, in July, Netflix announced that it would split its dual-service, digital streaming and direct mail DVDs, into two services. Netflix would remain, offering the digital streaming service. Meanwhile, a new service would emerge: Qwikster. Qwikster would have handled the direct mail DVDs, if it weren’t for the fact that the public went ballistic about the idea when it was announced, and the company’s stock dropped.
Readers may think, “This doesn’t sound like such a terrible idea. Why was the public so angry?” In addition to splitting the services in two, Netflix would not charge its original $10 per month for both. Netflix said they were planning to charge $8 a month, for each service. This would have brought the total cost for both services up to $16, a major reason for the outcry. The price increase totaled to a 60 percent increase in price.
While Netflix stuck with their plan for a while, it seems that the amount of cancelled subscriptions got to the Netflix CEO, Reed Hastings. Netflix abandoned the Qwikster idea, and instead decided that both services will remain on Netflix. In a blog post, Mr. Hastings was quoted as saying, “This means no change: one website, one account, one password… in other words, no Qwikster.” Unfortunately for those who opposed the idea, the $16 per month charge for both services has remained intact.
In his blog post, Mr. Hastings went on to say that there will be no new price hikes in the near future. However, the post does not address whether or not the additional features planned for Qwikster, like video game rentals, have been tossed aside, or whether they’ll be integrated into Netflix itself.