In one of the swiftest corporate back-peddlings we’ve seen in recent memory, Netflix announced this morning that it is forgoing the corporate separation it introduced last month, which would have DVD-by-Mail rental services rebranded as Qwikster. The 60% price increase that lead to the initial customer outrage (and 1 million less Netflix subscribers) will remain in place, however.
Netflix CEO Reed Hastings has publicly denied all interview requests, releasing a statement which reads in part, “there is a difference between moving quickly — which Netflix has done very well for years — and moving too fast, which is what we did in this case.”
“We underestimated the appeal of the single web site and a single service,” Steve Swasey, a Netflix spokesman, said in a telephone interview with The New York Times, “We greatly underestimated it.”
Any EGs still with Netflix? What are your thoughts on the whole Qwikster strategy, now that everything has calmed down? Comment below!