Netflix's Qwikster debacle: Can the damage be undone?

After just three weeks, the company puts the kibosh on a much-loathed plan to separate its streaming and DVD-by-mail services

Netflix CEO Reed Hastings
(Image credit: Getty Images Latam)

Netflix, the once beloved DVD-by-mail and video-streaming service, has been messing with its strategy — and customers' minds. In July, Netflix raised the price on its popular DVD-and-streaming combo plan by 60 percent, inciting subscriber rage. Then last month, in another unpopular move, Netflix announced it was splitting into two different companies, creating a new business called Qwikster to manage its DVD-by-mail offerings. Now, just three weeks later, the company has backtracked on the controversial Qwikster split, presumably in response to customer outcry. Will America forgive Netflix for its recent missteps?

Netflix will be fine if it wises up: Chief executive Reed Hastings has a rep for being "one of the tech sector's most consumer-friendly CEOs," says Greg Sandoval at CNET. He's built up a lot of customer goodwill over the years by freeing customers from video store lines and late fees, and customers will likely forgive Netflix's transgressions if the company stabilizes and puts this strange summer behind it. Netflix needs to make two things a priority: Adding more titles to its streaming service to make up for the price hike, and "not generating any more headlines."

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