Netflix is scuttling plans to splinter its movie streaming and DVD mail service into two separate entities, leaving its previously announced video game expansion on hold until further notice.
Last month, Netflix CEO Reed Hastings announced the company would port its direct-to-home rental operations to a new division called Qwikster, while the Netflix name would be retained for its streaming services. Today, Hastings told members he has instead decided to keep the company together, explaining: “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. This means no change: one website, one account, one password… in other words, no Qwikster.”
The new Qwister brand was slated to launch with a premium video game rental option, however the addition of games to Netflix's library now seems uncertain following the company's latest retraction. Reed's most recent blog made no mention of games, and Netflix rep Steve Swasey told The New York Times that plans to include games as part of its offerings was “yet to be determined.”
Netflix has been on shaky grounds with members and investors alike ever since it announced a new price structure back in August and unveiled the formation of Qwikster. On a more positive note, Netflix recently inked a deal with DreamWorks Animations to begin streaming the studio's works starting in 2013, and last week it reached an agreement with AMC Networks to begin streaming its older shows including the first season of The Walking Dead. So no games, but more zombies; that balances things out a bit, no?
Oct 10, 2011
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