Netflix does a 180...


About a month ago, Nexflix announced it would split it's DVD business and it's streaming business and no longer offer bundled services. If you still wanted physical DVD's you would have to sign up for Qwikster and have a separate account and manage separate queues for DVD's vs streaming.

There was a HUGE upraor from customers. Some complaing of this a a simple price hike. Other stating they understood the need for increased pricing for the physical DVD service but furious about the complication of now having to manage two services.

Some reports indicated that Netflix stood to lose up to 1/2 of the DVD customers due to this move. Personally I think they would not mind that as it makes more sense moving forward for them to move as many customers to streaming as possible. However, it apperas that their poor handling of the situation was causing some customers to consider leaving the service completely.

The good news is that they apparently listened and are scrapping the whole plan and returning to the old systems. You can see their blog post here and read more hear at gigaom.com.