Netflix has announced today, it will cancel its plans to split into two companies. About three months ago, we had talked about Netflix customers not happy with new price hikes and wanting to split it's streaming and DVD rental service into two different companies.

The idea was, Netflix would still offer the same streaming service it always has, except without the DVD rental service and a little price bump would be implemented. Qwikster would fill in the DVD-only service for those interested in DVD rentals and that meant customers would need to purchase a whole different account to rent DVD’s. As you could imagine this didn’t sit to well with customers. Wall Street even showed its disliking to the idea of Netflix splitting in two. After Qwikster was unveiled three weeks ago, Netflix already declining stocks dipped from $155 on Sept. 16 to $117 by the end of the day, overall stocks have fallen 60% from its $304.79 all-time high on July 13.

CEO of Netflix, Reed Hastings announced in its blog post this morning they will not launch Qwikster, and will keep the same service its customers have always enjoyed. There will be “no change: one website, one account, one password … in other words, no Qwikster.” he also added “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.”

Except for one little thing, Reed went on with his blog posting “while the July price change was necessary, we are now done with price changes”. So while Netflix has reversed it decision to split into two services, the new price hike is here to stay.

Last month Netflix released the video below, of the two clever guys with the "sweet idea" to ruffle its customers feathers, in its attempt to split the company in two.



Are you upset about Netflix trying to get you to purchase two different accounts, for a service it had already provided? Will changing back its service keep customers from leaving Netflix? Have you already moved on? If so, let us know in the comments below.

Tags: DVDs, Jason Castillo, movies, Netflix, Qwikster, Price hike, Reed Hastings, Announced, streaming, video