People were up in arms. They apparently lost a whole bunch of customers - a trend this year, as people dropped off the service when the price to have an unlimited amount of content streamed and mailed to your house every month was increased slightly - and so the company has swiftly shuttered their plans for a spin off company.
DVD and streaming will remain separate - DVD folks will even move to a new headquarters - but the name will remain the same. All of this feels cosmetic, and not really worth the embarrassment the company has gone through the last few months. I wonder what's going through their heads at Netflix - none of this makes great sense.
Meanwhile the real victim is @Qwikster, a stoned English youth who had the Twitter handle that Netflix wanted for their new service... who didn't sell. Speculation is that he was trying to drive up the price. Too bad, @Qwikster, too bad.