Netflix decided it had to rewind in order to move forward.

The company announced today that it killed its plans to turn its DVD service into a separate business named “Qwikster.”

In a blog post, Netflix CEO Reed Hastings said the company had reversed its decision from it’s original decision three weeks ago.

“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,” Hastings said in the blog post.

While Netflix had to use some strained logic to explain its decision to split the businesses last month, this one was straightforward — it was not going to force customers to use two different services to rent DVDs and stream video, because customers hated that idea.

Wall Street did not like it, either.

After Netflix unveiled its Qwikster plans, the company’s stock, which has tumbled since July, fell another 25 percent — from $155 on Sept. 16 to $117 on Oct. 7.

Presumably, the announcement was made to appease at least some disgruntled customers and investors.

But not all of them — Netflix still has not changed the pricing plans it announced this summer, which amount to a 60 percent price hike for about half of its customer base. That price hike was what kicked off the company’s tumble from a peak of $300 a share.

Stock moves aside, the about-face, three weeks after an announcement that seemed rushed itself, was a little hard to square with the aura that used to surround Netflix and Hastings in particular: Super-smart, able to see around corners, not afraid to run against the herd.

A week ago, Ted Sarandos, Netflix’s man in Hollywood, told an industry conference that he was “very convinced” the split was “good for the long-term health of the business. And the long term clarity of the brand.”

“But we also hear our customers, and we want to make sure we react to that,” he added, promising that Netflix would have some news on the Qwikster front soon.

To read more, go to AllThingsD.com