Netflix CEO announced the closing down of ‘Qwikster’ through a post on blogspot.
A company spokesman told media Friday they are abdicating their “break-up plan to keep their online streaming services and DVD-by-mail together under one website and one name “. ‘Qwikster’ was suggested as the new division of the company that was to be solely responsible for handling DVD-by-mail services. The media group came under intense criticism and was forced to shutdown before it even started.
?We underestimated the appeal of the single web site and a single service. We greatly underestimated it. Netflix spokesperson stated”.
According to critics, after a season of dazzling blunders by the company, Netflix finally got it right and listened to customer demand.?Monday?s announcement was the ?necessary reversal of a bad decision,? Richard Greenfield, a media analyst for BTIG Capital said. ?The key remaining question,? he said, ?is why did they make the Qwikster decision in the first place??
According to analysts, Netflix?s third-quarter losses surpassed the company?s previously-detracted expectations, but the company has denied the analysis. The company’s stock declined in the afternoon after the news, closing down 4.8 percent at $111.62.