UPDATE: Netflix has reversed its decision to separate its DVD rental business from its movie streaming service, and in so doing killed its short-lived Qwikster service.
In an announcement on the company's blog, Reed Hastings, CEO of Netflix, said: "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."
Many people were unhappy at the thought of having two separate places to login, access films and keep account details. A problem, which Hastings recognises: "This means no change: one website, one account, one password… in other words, no Qwikster."
He also confirmed that there would be no more price rises but insisted those inflicted on Netflix customers were entirely necessary.
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Published 20.09.2011:
Netflix has announced that it has split its streaming movie business from its DVD rental service.
The DVD rental service is now named Qwikster, while the streaming business will continue as Netflix.
Netflix made the announcement in an official blog price and defended subsequent price rises. The two services are now billed separately through different websites.
Reed Hastings, CEO of Netflix, said: "We realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently."
The US service is set to come to the UK, joining the likes of LoveFilm, Acetrax and Sony's Video Unlimited, in offering streaming movies via Smart TV and the internet.
Whether Qwikster, the newly-named DVD rental arm of the company, will follow, remains to be seen.
