Netflix, in blog post from CEO Reed Hastings, announced a halt to its plan to separate its streaming and DVD subscription services. After three weeks of negative reaction from subscribers, and a 25% drop in its stock price, Netflix shelved its Qwikster plans And in doing so perhaps avoided the biggest marketing blunder since New Coke.
What's not being changed, however, are the new pricing plans announced over the summer - plans that would reflect a 60% price increase for about half of Netflix subscribers. Dropping the plan to split may not be enough to stop the continuing decline, particularly as other streaming and DVD rental services bulk up their offerings.
Source - Qwikster is Gonester: Netflix Kills Its DVD-Only Business Before Launch AllThingsD