UTAH TECH UNIVERSITY'S STUDENT NEWS SOURCE | January 27, 2023

Netflix Flip-Flops on Qwikster

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The decision to split their business into two separate entities has relapsed for Netflix Inc.

After announcing last month they would split their DVD-by-mail services from Internet streaming services into a new company called Qwikster, Netflix has gone back on their decision, and will now remain one entity. 

In a blog post from Netflix CEO Reed Hastings on Monday, he said, “Subscribers will be able to use both services under one account and one pasword.”

The decision to split into two companies saw an outcry from subscribers, many feeling it would be a nuisance to manage two separate accounts. 

“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,” Hastings said in the blog post.

The move was beneficial for investors, who saw a 7.4 percent increase in stock, bringing the total to $125.84. But even with the cancelation of Qwikster, Netflix shares have still lost more than half of their value since July.