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Netflix abandons plans to spin off ‘Qwikster’ DVD business

Netflix on Monday announced that it will abandon its plan to spin off the company’s DVD rentals-by-mail service. The home entertainment giant announced last month that it would break off its DVDs-by-mail service into a separate company called “Qwikster,” allowing it to focus on the Web-based content that represented the future of its business. “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,” Netflix CEO Reed Hastings wrote on the company’s blog. “This means no change: one website, one account, one password… in other words, no Qwikster.” Shares of Netflix stock jumped more than 11% in pre-market trading on the news. Netflix lost more than 30% of its market value since the company first announced its Qwikster spin-off.

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Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.