: After 3 weeks, Netflix has abandoned their plan to split the company and issued another apology - http://money.cnn.com/2011/10/1...../index.htm
What gave them a clue? Maybe the droves of customers abandoning them....
After customer outrage and falling stock prices, Netflix announced that their DVD business will be rebranded as Qwikster, while the streaming movie service will retain the Netflix name. They will also add a video games upgrade option, for those who want to rent Wii, PS3 and Xbox 360 games.
The price and plan changes will remain the same, and a separate Qwikster site will be launched in a few weeks, but it will not be integrated with the Netflix site.
The CEO apologized to customers for a lack of communication in a blog post 9/18/11 - http://blog.netflix.com/2011/0.....tions.html
It starts with an admission to customers: “I messed up.” He's still not saying that the price hike was a mistake, only that he should have explained it better.
We realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently. It’s hard for me to write this after over 10 years of mailing DVDs with pride, but we think it is necessary and best: In a few weeks, we will rename our DVD by mail service to “Qwikster”.
We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.
Their YouTube apology is here - http://www.youtube.com/watch?f.....n8n5CIPk#!