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Netflix changes course once againNetflix is back in the news as the company retracts a business decision it made last month. The company had planned to spin off its DVD-by-mail service and call it Qwikster, but Netflix has now canceled those plans. CNET's Kara Tsuboi reports.
-On September 18, we said hello to Qwikster on a YouTube video from Reed Hastings, CEO of Netflix. -We think that the DVD service needs its own brand so that we can advertise it. So we've named our DVD service Qwikster. -And just 3 weeks later, we say goodbye to Qwikster as Hastings announces the news on the company log that rental services will not be splitting into two. "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." -I think in a lot of ways is this a return to the Netflix that people know and love, and I think when they are threatening to split it up, it was kind of-- it broke that nostalgia. Netflix says it already lost 1 million subscribers after their service changed and fee increase. Experts like CNET's Josh Lowenstein say the move to eliminate Qwikster shows the company is paying attention. -Put these things back in a one and really simplify it. It says "Hey, you know what? We're listening to you. We know you didn't like this idea we had and we're going back to the way it was." -While Netflix struggles with its brand identity, other media companies like Blockbuster aren't afraid to poach their disenfranchised customers through Twitter deals. After Netflix introduced Qwikster last month, its share price dropped nearly 40%. After the company changed its tune Monday morning, the stock price did increase dramatically. We'll see if investor confidence is sustainable as the company tries to stay on key. In San Francisco, I'm Kara Tsuboi, cnet.com for CBS News.