Netflix Announced They Won’t Split After All

Tori Moses

A couple of weeks ago Netflix was all over the headlines after they announced that they will split their company into two: Online streaming, which will remain Netflix, and DVD by mail rental, which has been re-named Qwikster. They would become two separate companies requiring two separate accounts. Now Netflix has come out saying that they will not longer proceed with their plan of splitting into different companies.

The news of the split as well as recent price increases has left customers outraged causing Netflix to cancel their idea of two businesses, but their price changes will stay the same. The news sent Netflix shares up nearly 10% in early morning trading before they fell to a loss of 1.2% at $115.76 in recent trading.

Netflix’s constant financial changes have caused an uproar with customers and led Netflix to slash its third-quarter forecast for U.S. subscribers. Analysts say the actions Monday, while a step in the right direction, may not be enough to win over upset consumers. Only the future will tell us if Netflix has made the right choice by their customers.