Netflix Announces They Will No Longer Split Into Two Divisions

Bowing to the pressure from the response of millions of subscribers, Netflix has announced that they will not be moving forward with their plan to split their company into two separate divisions.

The previous plan was announced by the Netflix CEO, was to split the popular DVD and Online streaming company into Qwikster - a DVD by mail division and keep Netflix as the online streaming portion of the business. But that announced split and rate increase brought overwhelming dissatisfaction and sent thousands of subscribers to let their voices be heard via emails, facebook and twitter.  This, in addition to the thousands of users which simply unsubscribed from the service. Later, Netflix CEO Reed Hasting apologized but seemed to stand firm on the decision.

Now it seems as though the lack of public support has  forced Netflix to change their plans.

Here is the email received by Netflix subscribers on Monday:

Dear (Subscriber name),

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.

This means no change: one website, one account, one password…in other words, no Qwikster.

While the July price change was necessary, we are now done with price changes.

We're constantly improving our streaming selection. We've recently added hundreds of movies from Paramount, Sony, Universal, Fox, Warner Bros., Lionsgate, MGM and Miramax. Plus, in the last couple of weeks alone, we've added over 3,500 TV episodes from ABC, NBC, FOX, CBS, USA, E!, Nickelodeon, Disney Channel, ABC Family, Discovery Channel, TLC, SyFy, A&E, History, and PBS.

We value you as a member, and we are committed to making Netflix the best place to get your movies & TV shows.

Respectfully,

The Netflix Team

Will this be enough of a move to stop the decline in membership or to entice members who've left the subscription service to come back?

Time will tell.