Netflix announced on Monday that there are two separate companies, a its highly controversial move for the streaming service and create another for mailing DVDs is reversal. The company now says that customers can keep only one account and password.
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Good bye, Qwikster. We hardly knew you. Netflix today announced that she will drop their plan for their DVD and streaming services. Qwikster was announced less than a month ago.
And became NPR's Ted Robbins reports, it has in addition to universal contempt included.
TED ROBBINS: You have a problem, if one negative site comments, e-Mails and blog posts. You can pretty much sure that you have a big mistake when "Saturday Night Live", takes you to be.
(SOUNDBITE SHOW, "SATURDAY NIGHT LIVE")
JASON SUDEIKIS: (as of Reed Hastings) Hello. I'm Reed Hastings, CEO and co-founder of Netflix.
FRED ARMISEN: (as Andy Rendich) and I am Andy Rendich. I head up-DVD rental for Netflix.
SUDEIKIS: (as of Reed Hastings) UH-huh. We knew that she loved Netflix, because it was the film a user-friendly website for all your needs. To make it better, we have divided it slightly more confusing pages into two separate.
ROBBINS: Netflix streaming video and Qwikster for DVD rentals. This part was in reality. Then grip of the SNL skit Netflix with the words: it was divided into three new sites, then merged with a nut company and insurance, Aflac, the a duck used for their speakers.
(SOUNDBITE SHOW, "SATURDAY NIGHT LIVE")
SUDEIKIS: (as of Reed Hastings) announcement of the merger of Quaken of first and Nutflix. Welcome to Groove Quak-Qwikster.
ROBBINS: Netflix breach of a cardinal obligation marketing. Make it more difficult for your customers to get your product.
STEVE SWASEY: We completely underestimated the appeal of the simplicity of the Netflix website.
ROBBINS: Steve Swasey is Netflix of spokesman for.
SWASEY: It will remain so, as it all together you know. Both unlimited streaming and unlimited DVDs by post wants a website, a character in an account, a set of reviews, a simple service for all Netflix.
ROBBINS: A price increase announced this summer remains. Customers now are $8 per month of streaming video and DVD in comparison with the old low price of $10 per month for both figures.
Netflix lost one million customers are in the United States which increased prices, even if, like Steve Swasey customers that Netflix understood prices to cover the rising costs of the acquisition of content and mailing DVDs to increase.
SWASEY: The most reasonable people understand that, but we no good job, communication and explains that.
ROBBINS: while US customers lose, Netflix one million customers won if it has extended its streaming water business in Canada last year and it just started, the streaming business in Latin America offers. The United States are the only place that offers the Netflix DVDs by mail.
Andy Hargreaves, analyst with Pacific Crest securities, thinks that the decision to Qwikster kill the right decision is. PR problem caused by the error is another issue.
ANDY HARGREAVES: The problem is, this is a management team, which was for a long time, as in able to do no wrong and way perceived the smartest guys in the room, and I think the image is getting clouded in any case.
ROBBINS: Hargreaves says that Netflix offers many content for customers at a reasonable price. It soon will lose Starz movies, it wins DreamWorks Animation. He likes the company yet.
HARGREAVES: You know, as long as they no longer bad decisions to make, I think that they can sort of back on the horse, to speak so get, but it takes a while. I mean, they've definitely done brand damage.
ROBBINS: Tony Wible thinks that it is more than just image damage. He is an analyst with Janney capital markets. He calls Netflix AOL streaming, predictions that it will slowly fade to expand online streaming competitors such as HBO, Hulu, Apple and Amazon.
TONY WIBLE: Netflix is the first person to walk through the door, but they are certainly not the last. And the people who now start, have received services to spend billions and billions of dollars in its balance sheet.
ROBBINS: There will be a fight over the next years for company acquires the rights for movies and TV shows. But today, not you in the position to you by Qwikster, an idea which time never came.
Ted Robbins, NPR news.
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