In a September 15 posting, I explained the controversy over Netflix's decision to separate its online streaming and DVD subscriptions, which lowered its stock price significantly. Today, according to a New York Times article by Brian Stelter titled "Netflix Abandons Plan to Rent DVDs on Qwikster," the media giant has announced that it is reversing its decision, and will instead be keeping all subscriptions under one company.
Today's announcement, which had a positive impact on the company's stock price in the early hours of trading, came with sobered remarks from Netflix spokesman Steve Swasey and a statement from chief execute Reed Hastings, both communicating that their original decision had the company "moving too fast." Netflix never actually created its proposed DVD company "Qwikster," though there are talks that it will keep the name and perhaps adapt it into a video game rental division in the future. For now, Netflix customers can breathe a sigh of relief that although a price increase will still take effect (the double subscription will now cost $16 a month instead of $10 a month), they will be able to manage all their subscriptions under one account.
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