Netflix on Monday announced that it will abandon its plan to spin off the company’s DVD rentals-by-mail service. The home entertainment giant announced last month that it would break off its DVDs-by-mail service into a separate company called “Qwikster,” allowing it to focus on the Web-based content that represented the future of its business. “It is clear that for many of our members two websites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs,” Netflix CEO Reed Hastings wrote on the company’s blog. “This means no change: one website, one account, one password… in other words, no Qwikster.” Shares of Netflix stock jumped more than 11% in pre-market trading on the news. Netflix lost more than 30% of its market value since the company first announced its Qwikster spin-off.
Netflix abandons plans to spin off ‘Qwikster’ DVD business
Mon, 10 Oct 2011 13:44:26 GMT