Tuesday, 11 October 2011 07:01
Netflix Plans For “Qwikster” Spin-off Abandoned
It was announced earlier today that Netflix will be abandoning its original plan to spin off the company’s DVD rentals-by-mail service into “Qwikster.” It was previously planned to spin-off the DVD-by-mail service, allowing it to focus on the Web-based content, which according to Netflix CEO Reed Hastings, was the future of its business. “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,” he wrote on the company’s blog. “This means no change: one website, one account, one password… in other words, no Qwikster.” Not surprisingly, after the news, shares of Netflix stock jumped more than 11% in pre-market trading on the news. A look back at the stock, when Netflix first announced its Qwikster spin-off, the company lost more than 30% of its market value. It is pretty ironic that the folks over at Netflix ever even though it was a good idea to spin-off the DVD-by-mail service as it sounds like a horrible idea, even to the public. Furthermore, the fact they never even reserved the name on platforms such as Twitter made it even worse with the whole fiasco where a user was spouting out random information regarding payment for the name. It’s good to see that the company managed to salvage itself from imminent doom. Stay tuned for more tech news and info by following us on Facebook, Twitter, and/or subscribing to our RSS feed. Authors:
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