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Entries in Video Rental (2)

Monday
Oct102011

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

Monday
Feb212011

Blockbuster Announces Start of Auction Process

Photo Courtesy - Blockbuster Inc.(DALLAS) -- Video rental company Blockbuster said Monday that it has initiated the process to auction the company in an effort to maximize value for its stakeholders.  An initial bid of $290 million was established by four large creditors, according to The Hollywood Reporter.
 
Blockbuster decided to sell the company when creditors could not come to an agreement about a recapitalization plan for the company, which filed Chapter 11 bankruptcy last fall.

The companies which participated in the "stalking horse" or initial bid to set the minimum acceptable bid are Blockbuster debtors Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Managemen, Varde Partners and Colbalt Video Holdco (managed by Monarch Alternative Capital).

The initial bid did not include billionaire investor Carl Icahn, who also owns are large amount of Blockbuster's debt.

Blockbuster expects to close a sale no later than April 20.

Copyright 2011 ABC News Radio 







ABC News Radio