Netflix kills Qwikster, will keep DVDs in house

All that Netflix handwringing was all for naught.

Netflix will not be spinning off its DVD business into a new company called Qwikster:

“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,” read his post on the company’s blog (blog.netflix.com). “This means no change: one website, one account, one password… in other words, no Qwikster.”

The big problem with splitting the company in two was usability. Users would have had to search for movies on two different sites and maintain two different movie queues. While this may have made sense for Netflix in an abstract business sense, it was a huge usability fail.

The question now becomes: Will Netflix still be able to convince movie studios of the value of streaming movies? That was the whole idea behind the split in the first place. Studios argued that people had Netflix for physical DVDs, while Netflix said users really loved streaming.