American DVD rental and web streaming company Netflix has now announced it has abandoned plans to spin off its DVD division into a separate company.
That plan was announced after the firm rose prices for web streaming and DVD access, saying the two divisions would be treated separately.
Last month Netflix said it would use a new company called Qwikster to handle the DVD business.
“There is a difference between moving quickly – which Netflix has done very well for years – and moving too fast, which is what we did in this case,” said chief executive Reed Hastings, who is facing a barrage of criticism.
‘Consumers value the simplicity Netflix has always offered and we respect that.”
Netflix shares fell after the announcement, and are down 62% over the past three months.
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