Netflix Retracts Plan to Separate DVD, Streaming Services

PRNewsFoto/Netflix, Inc.(LOS GATOS, Calif.) -- Nearly a month after Netflix announced it was going to spin off its DVD rental business into another website, the company has now retracted its plan to separate the service.

In a statement released Monday, the Internet movie rental provider said it would keep its DVD-by-mail and online streaming services together on Netflix.com.

The company will no longer be branching out its DVD business under the name "Qwikster," as it had announced on Sept. 18.  That plan would have forced Netflix customers to have two distinct accounts and sign into two separate websites -- Netflix.com and Qwikster.com -- in order to manage their rental requests.

Netflix co-founder and CEO Reed Hastings said he axed Qwikster to keep renting simple for customers -- and after user outcry over the switch that sent the company's stock tumbling.

"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," Hastings wrote in a blog post Monday.  "This means no change: one website, one account, one password...in other words, no Qwikster."

Copyright 2011 ABC News Radio

Netflix Apologizes for Changes; Separates DVD, Streaming Services

PRNewsFoto/Netflix, Inc.(LOS GATOS, Calif.) -- Netflix has issued an apology to its millions of subscribers for how it's handled a new pricing policy.

"I messed up.  I owe everyone an explanation," said CEO Reed Hastings in a blog post to Netflix customers on Sunday.

Hastings admitted his company "lacked respect and humility" in how it announced new, higher prices.  The changes led to many customers canceling their subscriptions.

And now, customers have another reason to complain: Netflix is separating its online streaming and DVD rental services.

The company says it will retain its name for its streaming business but will branch out its DVD business under the name "Qwikster."  The services will no longer be integrated, so customers will have to sign on to two separate websites -- Netflix.com and Qwikster.com -- and will have two distinct accounts.

Hastings adds, "There are no pricing changes (we’re done with that!).  Members who subscribe to both services will have two entries on their credit card statements, one for Qwikster and one for Netflix.  The total will be the same as the current charges."

Copyright 2011 ABC News Radio