This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Netflix Abandons 'Qwikster'

Updated with analyst comment

NEW YORK ( TheStreet) - Netflix (NFLX - Get Report) decided to drop its plan to split off the company and rename its DVD business "Qwikster."

The company will keep its DVD-by-mail and its streaming services under the Netflix umbrella.

"It is clear that for many of our members two Web sites would make things more difficult, so we are going to keep Netflix as one place to go for streaming and DVDs," CEO Reed Hastings said in a Netflix blog post.

Hastings went on to say: "While the July price change was necessary, we are now done with price changes."

Netflix received plenty of grief after it announced the split last month, with subscribers already irate over higher prices and the possible loss of Liberty Starz content.

"The latest move shows they are acting out of desperation," said Janney Capital Markets analyst Tony Wible.

In September, Netflix slashed its domestic subscriber outlook, expecting to report a decline of about 1 million customers in the third quarter. But this revised guidance came before the announcement of the company split-up, leaving investors wondering just how many subscribers were lost during the quarter.

It has become clear that Netflix is now ready to do whatever it takes to reverse its bad wrap. Last week, the company announced the addition of new streaming television content. It is also rumored that Netflix may bring back new episodes of Arrested Development.

But Wible remains cautious on whether these moves will really change consumer perception and woo back lost subscribers.

- Reported by Jeanine Poggi in New York.

Follow TheStreet.com on Twitter and become a fan on Facebook.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
NFLX $571.55 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs