Less than a month after announcing plans to split its business into streaming Instant Watch services and the traditional DVDs-by-mail offering, Netflix has now announced that it will not be dividing its services into two separate businesses. Citing customer revolt, Netflix CEO Reed Hastings stated that shunting the DVD side of the business into a new service called Qwikster is no longer in the cards.
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.
This means no change: one website, one account, one password… in other words, no Qwikster.
This is for the best. The Qwikster news struck me as a prime example of a company moving too quickly without thinking things through. While it's important for companies to move forward and progress, knee-jerk reactions are never the answer. More from a gaming perspective, however, is the news as reported by the New York Times that the newly reunited company is reconsidering its plans to offer Microsoft Xbox 360, Sony PlayStation 3, and Nintendo Wii titles by mail. Adding video games to the disc service is the only good idea to come out of the Qwikster debacle. As we discussed on Episode 63 of Power Button, there is interest in renting games in addition to movies from Netflix. Here's hoping the company doesn't compound its mistakes with another missed opportunity.