So I'm sure many of you Netflix customers got the same email I did the other day:
QuoteDear Sucker,
We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.
Your current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:
Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming) for $7.99 a month
Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). You don't need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.
These prices will start for charges on or after September 1, 2011.
You can easily change or cancel your unlimited streaming plan, unlimited DVD plan, or both, by going to the Plan Change page in Your Account.
We realize you have many choices for home entertainment, and we thank you for your business. As always, if you have questions, please feel free to call us at 1-888-357-1516.
–The Netflix Team
QuoteNetflix raises DVD, streaming plan price by 60 percent
Lisa Richwine
Reuters
LOS ANGELES (Reuters) - Netflix Inc hiked monthly prices for customers who use both its mail and online services, a move that could steer users toward its growing Internet streaming service.
The company said it was raising by 60 percent the monthly price of a plan that lets subscribers watch unlimited movies and video online and get DVDs by mail.
Customers in the United States who want both services will pay $7.99 per month to rent one DVD at a time plus $7.99 for unlimited streaming, or a total of $15.98 per month, the company said on Tuesday. The previous cost of this plan was $9.99 a month.
The changes take effect immediately for new subscribers, and in September for current customers.
Netflix, the top movie rental service with 23 million subscribers, recently has focused on its streaming service for televisions and mobile devices and downplayed its business of mailing DVDs in red envelopes.
The company faces growing costs for mail shipping and building its streaming library plus competition from online players such as Amazon.com Inc and Hulu.
The company separated the pricing for mail and streaming services "to better reflect the costs of each and to give our members a choice," Netflix Vice President of Marketing Jessie Becker wrote on a company blog post.
The company also said it saw continued demand for DVDs.
"Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs," Becker wrote.
Merriman Capital analyst Eric Wold said he thought the company was aiming to "steer people away from DVDs" by raising the cost for the combined service.
The $6-per-month price hike could lead some customers to downsize to a streaming-only plan and perhaps visit a Coinstar Inc Redbox kiosk for an occasional DVD, said Wold, who has a "neutral" rating on Netflix shares.
Netflix said its $7.99 option for one DVD at a time was its lowest price ever for DVD-only service. The company also said it was creating a separate management team to focus solely on DVDs by mail.
Its Canadian service is streaming only, and the new Latin American service also will be streaming only.
Netflix shares gained 0.2 percent to close at $291.27 on Nasdaq.
QuoteNetflix price rise draws user ire, investor glee
LOS ANGELES (Reuters) - Netflix Inc's hefty price increase provoked an unprecedented outpouring of outrage on the Internet, but Wall Street cautiously welcomed the move, sending its shares up nearly 3 percent on Wednesday.
Thousands of subscribers complained on Netflix's official blog with many threatening to cancel subscriptions after the fast-growing video service raised prices by up to 60 percent for users of both its streaming andDVD-mail service.
Many said they would consider options such asHulu, the Internet video service owned by Comcast Corp NBC Universal, News Corp, Walt Disney Co and Providence Equity Partners, or even Redbox, whose once booming kiosk-rental service had been eclipsed by online, instant Web offerings.
"Who's genius idea is this crap?" said one comment on the Netflix blog, which promised to cancel service. "Your streaming selection sucks and the Red Box is looking better and better these days!"
The higher prices clearly stirred passions among the company's subscribers, but Netflix brushed off the criticism as expected from a vocal minority.
"We knew there would be some people who would be upset," company spokesman Steve Swasey said.
The increase amounts to $6 a month for one DVD at a time plus unlimited streaming.
"To most people, it's a latte or two," he added.
The company expects some cancellations, Swasey said, but he declined to say how many.
Some industry analysts argued the higher prices should make up for cancellations, in part by driving customers toward more profitable Netflix plans.
Subscribers who cancel are likely to be in lower-priced plans, with one DVD at a time, who turn in more DVDs, saidGoldman Sachs analyst Ingrid Chung.
"Gross margins should benefit as we believe that the majority of lower-priced (subscribers) were less profitable for Netflix," Chung said in a research note.
Lower-priced subscribers also might be drawn to the streaming service, "which has very incremental margin," wrote Chung, who has a "buy" rating on Netflix shares.
The new prices take effect immediately for new subscribers and in September for current customers.
Netflix's price rise comes as it finds itself writing increasingly large checks for the rights to the movies and TV shows its customers expect to find from its streaming service.
In one such deal, Netflix renewed on Wednesday a multi-year agreement with Comcast Corp's NBC Universal, giving it rights to stream previous season hits such as"The Office" and Parenthood" from NBC and series, including "Keeping Up with the Kardashians" and "Psych", from its cable networks. The financial details were not disclosed.
Netflix said on Tuesday it was raising by 60 percent the monthly price of a plan that lets subscribers watch unlimited movies and video online and get DVDs by mail.
The price for unlimited streaming plus rental of one DVD at a time will run about $16, up from about $10. Subscribing to just streaming, or just one DVD at a time, costs about $8.
One comment on the Netflix blog was more accepting.
"If you can improve your streaming selections it would be a benefit. I now pay the price of both anyway so I don't see a downside for me," wrote a person identified as "Scott."
While customers vented on the Netflix blog andFacebook page, the company's shares rose 2.6 percent to close at $298.73 on Nasdaq.
Complaining of unlimited for 15$ a month.
You don't know how lucky you are.
Quote from: Grey Fox on July 14, 2011, 07:01:25 AM
Complaining of unlimited for 15$ a month.
You don't know how lucky you are.
Seriously. Unlimited for both for less than $20 is still a steal. A company running at that price point basically
has to raise their prices sooner or later in order to turn a profit.
Quote from: Grey Fox on July 14, 2011, 07:01:25 AM
Complaining of unlimited for 15$ a month.
You don't know how lucky you are.
Depends how often you use it. I'm not sure if either plan is worth it for me with the increase. The dvds pull even with Redbox(and with better selection, except you have to wait a couple extra months for newest ones) but that's if you want to watch a movie every 3-4 days. If you sometimes go a week without watching one, those 7-8 movies a month can turn to 3-4 pretty easily. The online plan is subject to their very limited selection of newish stuff. Also, I've been a member only a year and this is the 2d rate increase already. <_<
Quote from: DontSayBanana on July 14, 2011, 07:10:53 AM
Quote from: Grey Fox on July 14, 2011, 07:01:25 AM
Complaining of unlimited for 15$ a month.
You don't know how lucky you are.
Seriously. Unlimited for both for less than $20 is still a steal. A company running at that price point basically has to raise their prices sooner or later in order to turn a profit.
And now that Blockbuster is out of business, they can afford to. :)
Quote from: HisMajestyBOB on July 14, 2011, 08:59:47 AM
And now that Blockbuster is out of business, they can afford to. :)
Blockbuster isn't out of business. But it has never been competitive with Netflixs, and is less so now that it is smaller. However, Dish has plans for expanding BB's online offerings, so Netflixs should take care to keep their customers happy and loyal. Raising prices without any offsetting increase in service isn't the way to do that (though it may be necessary if they are to make a profit).
You'd think there'd be some sort of discount for taking them both.
Blockbuster got ridiculous with the assorted crap they were trying to sell in their stores to desperately bring in revenue (individually packaged pickles? Really??). They put a lot of their electronics stuff on clearance a few weeks ago, and I helped one of my stores reduce their inventory, so I have enough batteries to last me a few years plus a buttload of small electronics crap to use as stocking stuffers. Only thing I regret buying was the official Blockbuster streaming (Roku wanna-be) set-top box. It was only $10, but since it had SD card and USB slots I thought it would do more than
Anywho, I hope Dish finds a way to keep Blockbuster's physical retail presence in some way. The location near me seems to do a lot of business (same was true with my Circuit City before the chain went under).
Re: Netflix, I dropped from the 2 disc to 1 disc plan in December because we had gotten to the point where we were only watching one disc movie every couple of weeks. With the pricing change we've been bumped back up to what our 2-disc plan used to cost. So at this point, screw it-- I'm going streaming-only for $7.99/mo & If I really need to rent something I'll start doing the Redbox thing. Or maybe I'll throw Blockbuster a frickin' bone every now & then and rent from their store.
IIRC, Netflix's rationale for increasing their pricing was their increasing cost of licensing for streaming content, which I believe. But then why didn't they raise the price for streaming-only? That only encourages people like me who under-utilize the disc service and watch a lot of streaming content to drop the disc service & go streaming only. Maybe that's their long-term plan?
Netflix streaming is an awesome service. I can stream content to my PCs, Xbox 360/PS3, my parents' TV and now my phone. I'd probably pay 2x or more for the streaming service. But it's good to see competition out there. If Amazon improves their streaming content, I might take the plunge and sign up for Prime. And Hulu Plus on Xbox 360 was sweet while I had my trial subscription.
Quote from: derspiess on July 14, 2011, 10:09:21 AM
IIRC, Netflix's rationale for increasing their pricing was their increasing cost of licensing for streaming content, which I believe. But then why didn't they raise the price for streaming-only? That only encourages people like me who under-utilize the disc service and watch a lot of streaming content to drop the disc service & go streaming only. Maybe that's their long-term plan?
It is. Netflix expanded to Canada with streaming only & there's no plan for the disc based toe ver come here, iirc.
Quote from: grumbler on July 14, 2011, 09:19:06 AM
Blockbuster isn't out of business. But it has never been competitive with Netflixs, and is less so now that it is smaller. However, Dish has plans for expanding BB's online offerings, so Netflixs should take care to keep their customers happy and loyal. Raising prices without any offsetting increase in service isn't the way to do that (though it may be necessary if they are to make a profit).
Seriously. My personal feeling is that this is going to have a similar effect to megaplex movie theaters- one titan of a service deliberately operates at a loss to choke out the competition, then it begins to die a slow death.
With the megaplexes, one theater took over the market of a whole community's worth of movie theaters, they operated at losses at the beginning, choked out the smaller privately-run theaters, and then found the public was less than sympathetic when they had to jack up their prices to cover their massive operating expenses (property taxes, many more reels leased per theater, more employees, sky-high utilities, bigger bulk insurance policies, and parent-provided vending contracts for concessions requiring much more in transportation costs).
In the case of Netflix, a lot of the problem is that they still deal in physical media; a certain percentage of the DVDs and Blu-ray discs (I'd wager a higher percentage of the Blu-rays, because of their higher cost) will be lost simply because they're not returned. In addition, physical media also equals storage and transportation, requiring more employees and more resources.
Quote from: DontSayBanana on July 14, 2011, 11:08:02 AM
In the case of Netflix, a lot of the problem is that they still deal in physical media; a certain percentage of the DVDs and Blu-ray discs (I'd wager a higher percentage of the Blu-rays, because of their higher cost) will be lost simply because they're not returned. In addition, physical media also equals storage and transportation, requiring more employees and more resources.
But that also brings in a huge chunk of revenue. Whatever the future physical media has vs. streaming, physical DVDs aren't dead yet by a longshot. If Netflix drops its core service too soon, that could be suicide.
Quote from: derspiess on July 14, 2011, 12:16:49 PM
But that also brings in a huge chunk of revenue. Whatever the future physical media has vs. streaming, physical DVDs aren't dead yet by a longshot. If Netflix drops its core service too soon, that could be suicide.
Yeah. I think we overestimate the percentage of people with connections fast enough to make streaming viable. For a lot of people, it is a physical disk or nothing.
I think I'm going to stopping sharing the account with my sister and get my own streaming-only account. She's likely to cancel hers. :hmm:
Quote from: grumbler on July 14, 2011, 12:34:20 PM
Yeah. I think we overestimate the percentage of people with connections fast enough to make streaming viable. For a lot of people, it is a physical disk or nothing.
And some are just too set in their ways to adapt quickly. I bought my parents a Roku box 2 or 3 Christmases ago, set it up for them, and showed them how to stream Netflix movies, thinking that they'd be all over that. But they almost never used it. My dad got a nice new Samsung TV that has Netflix streaming built-in, but I swear they'd rather wait to receive a DVD in the mail than watch it instantly. I know they understand how it all works, and they definitely have a fast enough internet connection, but they just can't change their routine.
Maybe that's a generational difference, but I've also known younger people with whom the movie streaming thing just doesn't 'click', despite them having the complete ability to take advantage of it.
Quote from: garbon on July 14, 2011, 01:07:34 PM
I think I'm going to stopping sharing the account with my sister and get my own streaming-only account. She's likely to cancel hers. :hmm:
I'm half tempted to set up a seperate account just for my son at some point. I'd like for him to be able to watch Netflix movies in his room, but I want to limit his instant queue to kid-friendly stuff and not have my wife's stupid zombie movies showing up in the queue or as suggestions. And it looks like the profiles function only separates DVD queues, with no way to do that for instant.
I like having the disc. It can't be taken away from me by a service.
Quote from: Ed Anger on July 14, 2011, 01:28:07 PM
I like having the disc. It can't be taken away from me by a service.
If there is a movie I really like I'll buy the blu-ray, espec. since prices have gotten a lot more reasonable. But we probably watch more streaming than physical media.
I strongly recommend "The Wild & Wonderful Whites of West Virginia" to anyone with a Netflix streaming account. Just don't watch it when kids are around.
I don't know I can take another film/documentary set in Appalachia. Those Harlan county ones burned me out real fast.
Quote from: Ed Anger on July 14, 2011, 01:37:17 PM
I don't know I can take another film/documentary set in Appalachia. Those Harlan county ones burned me out real fast.
This one takes it to a whole new level. At least give the first 15 minutes a try. Or skip to the part where Sue Bob is trying to order fajitas/"fiestas" and mozzarella sticks from the Taco Bell drive-thru.
Ah, hell-- I'll save you the trouble:
http://www.youtube.com/watch?v=G5ZCfo9RzO8
:D
Justified is pretty cool. Documentaries tend to suck though.
Honestly, as much as I use it Netflix could charge me 50 or 60 a month and it would still be worth it.
Oh, and their share price is actually down by $12 or 4% today.
Quote from: derspiess on July 14, 2011, 02:46:32 PM
Quote from: Ed Anger on July 14, 2011, 01:37:17 PM
I don't know I can take another film/documentary set in Appalachia. Those Harlan county ones burned me out real fast.
This one takes it to a whole new level. At least give the first 15 minutes a try. Or skip to the part where Sue Bob is trying to order fajitas/"fiestas" and mozzarella sticks from the Taco Bell drive-thru.
Ah, hell-- I'll save you the trouble:
http://www.youtube.com/watch?v=G5ZCfo9RzO8
:D
Ugh.
Quote from: Ed Anger on July 14, 2011, 03:13:37 PM
Quote from: derspiess on July 14, 2011, 02:46:32 PM
Quote from: Ed Anger on July 14, 2011, 01:37:17 PM
I don't know I can take another film/documentary set in Appalachia. Those Harlan county ones burned me out real fast.
This one takes it to a whole new level. At least give the first 15 minutes a try. Or skip to the part where Sue Bob is trying to order fajitas/"fiestas" and mozzarella sticks from the Taco Bell drive-thru.
Ah, hell-- I'll save you the trouble:
http://www.youtube.com/watch?v=G5ZCfo9RzO8
:D
Ugh.
You're welcome ;)
Quote from: Ed Anger on July 14, 2011, 01:28:07 PM
I like having the disc. It can't be taken away from me by a service.
I agree.
Quote from: derspiess on July 14, 2011, 02:46:32 PM
Quote from: Ed Anger on July 14, 2011, 01:37:17 PM
I don't know I can take another film/documentary set in Appalachia. Those Harlan county ones burned me out real fast.
This one takes it to a whole new level. At least give the first 15 minutes a try. Or skip to the part where Sue Bob is trying to order fajitas/"fiestas" and mozzarella sticks from the Taco Bell drive-thru.
Ah, hell-- I'll save you the trouble:
http://www.youtube.com/watch?v=G5ZCfo9RzO8
:D
Wow, a man with tits that wasn't fat!
Quote from: Lucidor on July 15, 2011, 08:32:04 AM
Quote from: derspiess on July 14, 2011, 02:46:32 PM
Quote from: Ed Anger on July 14, 2011, 01:37:17 PM
I don't know I can take another film/documentary set in Appalachia. Those Harlan county ones burned me out real fast.
This one takes it to a whole new level. At least give the first 15 minutes a try. Or skip to the part where Sue Bob is trying to order fajitas/"fiestas" and mozzarella sticks from the Taco Bell drive-thru.
Ah, hell-- I'll save you the trouble:
http://www.youtube.com/watch?v=G5ZCfo9RzO8
:D
Wow, a man with tits that wasn't fat!
All the women in that film have deeper voices than the men. I can't figure that out. Chain-smoking will only do so much.
Dammit, you are making me dread my annual visit to Harlan. :mad:
Quote from: Ed Anger on July 15, 2011, 08:59:53 AM
Dammit, you are making me dread my annual visit to Harlan. :mad:
And you were looking forward to it before? :lol:
Quote from: derspiess on July 15, 2011, 09:40:30 AM
Quote from: Ed Anger on July 15, 2011, 08:59:53 AM
Dammit, you are making me dread my annual visit to Harlan. :mad:
And you were looking forward to it before? :lol:
No. I've resigned myself that I have to go. Your video didn't help.
http://www.youtube.com/watch?v=EpKGHOvqsFc
Hitler finds out...you know the drill.
Quote
300 dollars a share is a fucking joke!
The reason for all this is their content investments have skyrocketed, of course.
I'll likely cancel the service. I've had it for over a year and a half, while the instant streaming is great, it isn't like there is an amazing new selection. At least that I haven't already seen. So with the second increase in a year, may as well save myself 120$ a year or so and just grab a redbox every now and then.
Is Redbox limited to the covers they have on the outside of the kiosk? Cuz the times I've looked the selection was shit.
Yeah, we are cancelling as well. I use the streaming a lot, but 60% increase? No thanks.
Quote from: Admiral Yi on July 16, 2011, 02:36:42 PM
Is Redbox limited to the covers they have on the outside of the kiosk? Cuz the times I've looked the selection was shit.
Nah, they have more than that, though not much. Maybe 100 titles? I don't know how much the selection varies from machine to machine either.
BBC iPlayer seems to cover most of my needs, together with the occasional dvd rental/purchase. :bowler:
Quote from: Peter Wiggin on July 16, 2011, 04:00:38 PM
Quote from: Admiral Yi on July 16, 2011, 02:36:42 PM
Is Redbox limited to the covers they have on the outside of the kiosk? Cuz the times I've looked the selection was shit.
Nah, they have more than that, though not much. Maybe 100 titles? I don't know how much the selection varies from machine to machine either.
They're demographically-oriented. My closest Redbox has nothing by Tyler Perry movies. YMMV.
Quote from: CountDeMoney on July 16, 2011, 05:46:18 PM
Quote from: Peter Wiggin on July 16, 2011, 04:00:38 PM
Quote from: Admiral Yi on July 16, 2011, 02:36:42 PM
Is Redbox limited to the covers they have on the outside of the kiosk? Cuz the times I've looked the selection was shit.
Nah, they have more than that, though not much. Maybe 100 titles? I don't know how much the selection varies from machine to machine either.
They're demographically-oriented. My closest Redbox has nothing by Tyler Perry movies. YMMV.
:lol:
I've found blockbuster stores to be tolerable since the bankruptcy. Prices are reasonable, and the employees seem to be less jerkish (FULLSCREEN? YOU DARE RENT A FULLSCREEN MOVIE ON MY WATCH!?!)
What kind of douche rents fullscreen?
Quote from: katmai on July 16, 2011, 06:49:25 PM
What kind of douche rents fullscreen?
Illiterates and old people.
I prefer fullscreen.
Quote from: sbr on July 16, 2011, 06:54:44 PM
I prefer fullscreen.
I'm sure that's the preferred method for infomercials.
Quote from: sbr on July 16, 2011, 06:54:44 PM
I prefer fullscreen.
You already disgust me by being an Oregon fan, but this sir i cannot stand!
Quote from: sbr on July 16, 2011, 06:54:44 PM
I prefer fullscreen.
And you are not that old.
I prefer full screen, my tv's not all that big and I don't want to spend the movie squinting.
Quote from: CountDeMoney on July 16, 2011, 06:57:32 PM
Quote from: sbr on July 16, 2011, 06:54:44 PM
I prefer fullscreen.
I'm sure that's the preferred method for infomercials.
The black bars are annoying. :mad:
Christ almighty, who authorized these fullscreeners to access my fucking board?
:hug:
Quote from: Scipio on July 16, 2011, 10:51:55 PM
Christ almighty, who authorized these fullscreeners to access my fucking board?
You people give me a headache.
Quote from: Ed Anger on July 17, 2011, 07:07:22 AM
You people give me a headache.
Go listen to your Creed greatest hits :rolleyes:
Quote from: Scipio on July 16, 2011, 10:51:55 PM
Christ almighty, who authorized these fullscreeners to access my fucking board?
No shit. Why would you pay full price to see only part of the movie?
Quote from: Ed Anger on July 17, 2011, 07:07:22 AM
You people give me a headache.
My Xbox is still connected by component jacks. :console:
Computer is the only way I watch HD.
All the action is in the center of the screen anyway :p
Roku XDS is so kewl.
Quote from: DontSayBanana on July 17, 2011, 10:05:27 PM
Quote from: Ed Anger on July 17, 2011, 07:07:22 AM
You people give me a headache.
My Xbox is still connected by component jacks. :console:
Computer is the only way I watch HD.
Component carries 720p just fine :contract:
Unless you mean composite...
Quote from: derspiess on July 25, 2011, 06:32:41 PM
Component carries 720p just fine :contract:
Unless you mean composite...
Actually, I do mean composite. I've got the composite/component cable, but all of the TVs in my house are CRTs. :weep:
Quote
Dear ___,
I messed up. I owe you an explanation.
It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.
For the past five years, my greatest fear at Netflix has been that we wouldn't make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us). So we moved quickly into streaming, but I should have personally given you a full explanation of why we are splitting the services and thereby increasing prices. It wouldn't have changed the price increase, but it would have been the right thing to do.
So here is what we are doing and why.
Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD. DVD is a great option for those who want the huge and comprehensive selection of movies.
I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We need to focus on rapid improvement as streaming technology and the market evolves, without maintaining compatibility with our DVD by mail service.
So we realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently.
It's hard to write this after over 10 years of mailing DVDs with pride, but we think it is necessary: In a few weeks, we will rename our DVD by mail service to "Qwikster". We chose the name Qwikster because it refers to quick delivery. We will keep the name "Netflix" for streaming.
Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, but now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated.
There are no pricing changes (we're done with that!). If you subscribe to both services you will have two entries on your credit card statement, one for Qwikster and one for Netflix. The total will be the same as your current charges. We will let you know in a few weeks when the Qwikster.com website is up and ready.
For me the Netflix red envelope has always been a source of joy. The new envelope is still that lovely red, but now it will have a Qwikster logo. I know that logo will grow on me over time, but still, it is hard. I imagine it will be similar for many of you.
I want to acknowledge and thank you for sticking with us, and to apologize again to those members, both current and former, who felt we treated them thoughtlessly.
Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions.
Respectfully yours,
-Reed Hastings, Co-Founder and CEO, Netflix
Qwikster? :bleeding:
Quote from: MadImmortalMan on September 19, 2011, 11:20:40 AM
Qwikster? :bleeding:
They should have just called it "Dead In Less than a Year".
Sounds like the name of a gas station.
I think Netflix has jumped the shark.
I miss having a real world video store half a mile away.
some video stores are doing fine, like mine. We are the last man standing as it were, in Vancouver. our business is actually picking up rather than being decimated by netflix (which has a craptastic selection, btw at least in Canada. My Mubi page has a better free section, or open cuture, youtube is getting there.) ..... people still come to our store in good numbers especially on rainy weekends.
Video store are the new record stores. The really good ones never went away, and these days are doing decent enough business to be slighly less misty eyed about how busy it was back in tha day.
I just looked at Netlix's stock price history for the last 12 months. :XD: Let's savor this moment, I think we're living through one of those business blunder moments that are forever recounted afterwards.
Quote from: DGuller on September 19, 2011, 12:00:20 PM
I just looked at Netlix's stock price history for the last 12 months. :XD: Let's savor this moment, I think we're living through one of those business blunder moments that are forever recounted afterwards.
It's a good idea to seperate tho. It'll be cheaper for netflix now that the dvd-only crowd won't count towards the streaming liscensing deals.
Quote from: MadImmortalMan on September 19, 2011, 11:20:40 AM
Quote
-snip-
Most companies that are great at something – like AOL dialup or Borders bookstores –
-snip-
Qwikster? :bleeding:
:lmfao: Way to make your case there, buddy, calling a company that managed to bankrupt itself "great."
Quote from: DontSayBanana on September 19, 2011, 02:19:12 PM
Quote from: MadImmortalMan on September 19, 2011, 11:20:40 AM
Quote
-snip-
Most companies that are great at something – like AOL dialup or Borders bookstores –
-snip-
Qwikster? :bleeding:
:lmfao: Way to make your case there, buddy, calling a company that managed to bankrupt itself "great."
Way to miss the point he was making.
Quote from: DGuller on September 19, 2011, 02:56:50 PM
Way to miss the point he was making.
I got it. It was still a piss-poor analogy.
Something I don't know: If I were to get Netlix could I stream it my PC? I don't have a Wii or other console.
Quote from: Razgovory on September 19, 2011, 04:25:40 PM
Something I don't know: If I were to get Netlix could I stream it my PC? I don't have a Wii or other console.
Yes you can.
Quote from: Barrister on September 19, 2011, 04:26:23 PM
Quote from: Razgovory on September 19, 2011, 04:25:40 PM
Something I don't know: If I were to get Netlix could I stream it my PC? I don't have a Wii or other console.
Yes you can.
I may sign up then. I never did before, cause I didn't want to mess with mailing stuff around and didn't own a console. Perhaps I shall purchase a subscription.
Or maybe not. The site is not working right.
Netflix's unforgiveable mistake was to give existing customers of their mail delivery business the streaming side for free. If they had announce that they were introducing a new streaming service that was going to end up costing as much as mail, but you had the great good fortune to get a X month free trial subscription, they would not be in the jam they are now.
Quote from: Admiral Yi on September 19, 2011, 06:03:34 PM
Netflix's unforgiveable mistake was to give existing customers of their mail delivery business the streaming side for free. If they had announce that they were introducing a new streaming service that was going to end up costing as much as mail, but you had the great good fortune to get a X month free trial subscription, they would not be in the jam they are now.
Well according to wiki, they first limited hours of content you could watch depending on how much you paid a month.
But I don't know if what you said is true. I mean even today the streaming side is pretty weak as far as catalog - so I don't see how they could have ever justified charging for the streaming when they started it up.
The streaming side today actually seems even weaker than it was in the past. It might be just subjective and anecdotal experience, but I used to look for some movie, and often find it streamable. Things like the first two Dexter seasons, etc. These days I inevitably don't find what I need. It's possible that I just collected all the low-hanging fruit at first, and am now looking for more rare movies, but I doubt it.
Quote from: DGuller on September 19, 2011, 07:00:06 PM
The streaming side today actually seems even weaker than it was in the past. It might be just subjective and anecdotal experience, but I used to look for some movie, and often find it streamable. Things like the first two Dexter seasons, etc. These days I inevitably don't find what I need. It's possible that I just collected all the low-hanging fruit at first, and am now looking for more rare movies, but I doubt it.
I think it is probably the case. I don't see it getting weaker and in the past year Netflix has been making deals to get more stuff on it.
I'm lucky enough to have a good independent video store 3 blocks away. The prices seem high, but if you buy a prepaid 20 rental card, each 5-day is about $2.25. And they have the VHS copies of things that haven't been put on DVD yet. And cut me a deal on late fees since I come in a lot. :showoff: I think I'll just keep the streaming Netflix so I have something at my fingertips, though.
Quote from: garbon on September 19, 2011, 07:13:04 PM
Quote from: DGuller on September 19, 2011, 07:00:06 PM
The streaming side today actually seems even weaker than it was in the past. It might be just subjective and anecdotal experience, but I used to look for some movie, and often find it streamable. Things like the first two Dexter seasons, etc. These days I inevitably don't find what I need. It's possible that I just collected all the low-hanging fruit at first, and am now looking for more rare movies, but I doubt it.
I think it is probably the case. I don't see it getting weaker and in the past year Netflix has been making deals to get more stuff on it.
The thing is that it also loses stuff. Dexter is no longer streamable, and neither are many movies that I already watched, and wanted to see again.
Quote from: DGuller on September 19, 2011, 10:43:40 PM
Quote from: garbon on September 19, 2011, 07:13:04 PM
Quote from: DGuller on September 19, 2011, 07:00:06 PM
The streaming side today actually seems even weaker than it was in the past. It might be just subjective and anecdotal experience, but I used to look for some movie, and often find it streamable. Things like the first two Dexter seasons, etc. These days I inevitably don't find what I need. It's possible that I just collected all the low-hanging fruit at first, and am now looking for more rare movies, but I doubt it.
I think it is probably the case. I don't see it getting weaker and in the past year Netflix has been making deals to get more stuff on it.
The thing is that it also loses stuff. Dexter is no longer streamable, and neither are many movies that I already watched, and wanted to see again.
Of course, the networks are fickle. Happens to all streaming stuff.
QuoteNetflix walks fine line with apology
Some experts say it came too late; others say it's not enough
By Robert Channick and Corilyn Shropshire Tribune reporters
11:33 p.m. EDT, September 19, 2011
Netflix subscribers long have been used to receiving movies and television shows from the world's largest provider of DVD and streaming video rentals. On Sunday, they received something unexpected — an emailed apology from a contrite and seemingly humbled CEO.
Taken to task for splitting the formerly unlimited DVD and streaming options into two categories and bumping the price by 60 percent, Netflix co-founder Reed Hastings offered a very public mea culpa in a missive to nearly 25 million subscribers and with an open letter on the company's website.
With thousands of members taking to the blogosphere in outrage, the stock price tanking and third-quarter guidance revised downward by 1 million subscribers, Hastings apologized for his "arrogance" in fumbling communication of the plan when it was announced in July.
"I messed up," Hastings said. "I owe everyone an explanation."
In the lengthy letter, Hastings expressed fear that Netflix would be headed for the corporate graveyard if it were unable to make the complete leap from DVDs to streaming. Splitting the services, he said, would improve the chances of a successful transition to digital. He also used the opportunity to announce the rebranding of the DVD business as Qwikster, replete with its own site.
The apology seemed to do little to assuage many subscribers or investors. By late Monday night, Hastings' blog post had nearly 20,000 comments, most of them negative, and the stock had dropped more than 7 percent for the day.
Corporate public apologies make headlines because they don't come every day and represent a striking about-face for companies that tend their positive images so aggressively. They also seem noteworthy because admitting fault potentially opens the doors to litigation.
But in an age when social media can swamp the reputation of a company overnight, experts say owning up to a problem publicly and promptly may be the only way to defuse a crisis.
"The digital era both amplifies the need for corporate confessionals and makes new apology modes possible," said Adam Hanft, a New York-based brand strategy consultant.
Hanft said he thought the Netflix email was an effective way to personalize the message.
"Because it shows up in your inbox right next to your Aunt Mary, there is a curiously believable part to the personal communication (from Hastings). I think he used the intimacy of email in a good way," he said.
But more than the medium, the message ultimately is what counts.
"There's sometimes too much focus on the apology itself," said Daniel Diermeier, a professor at Northwestern University's Kellogg School of Management and author of "Reputation Rules," a corporate primer on damage control in the digital age. "The real point is that people want to see an authentic effort to set things right and to restore trust."
Diermeier, a Netflix subscriber who received the email, said it "doesn't do anything for the customers" and makes things more difficult by splitting the brand into two websites. He also faulted the company for waiting two months before issuing the apology.
"If it takes too long, the people always believe it's calculated," he said. "When it's calculated, then it's worse than not apologizing at all."
He said the company may have been its own worst enemy because it did such a great job cultivating a fanatical following among customers. When things go wrong, the flip side of that attachment is the customer feels betrayed.
A company can emerge from a firestorm if it is well-prepared. That means knowing that a crisis could come at any moment and having a plan in place to deal with it. In the absence of communication, rumor and innuendo fill the gap, said Jonathan Bernstein, a Sierra Madre, Calif.-based crisis management consultant.
"In the age of the Internet, you need to be ready to communicate instantaneously," Bernstein said.
Putting out the fire, however, is no easy task.
The irreverent tone struck by Chicago-based Groupon in a Super Bowl ad in February proved to be tone-deaf. What started out sounding like a heartfelt public service announcement about the plight of the endangered Tibetan people ended with narrator/actor Timothy Hutton sitting in a restaurant, extolling their ability to "still whip up an amazing fish curry."
After the commercial was universally panned by the post-Super Bowl ad critics, Groupon CEO Andrew Mason posted an explanation on his blog the next day, defending the commercial's intended humor and the company's long-standing commitment to social activism.
Unable to quell the growing criticism, Mason went a step further Feb. 10, posting an unequivocal apology and vowing to remove the ads from the airwaves.
"We hate that we offended people, and we're very sorry that we did — it's the last thing we wanted," he wrote.
Skeptics would say the Netflix apology was meant as damage control after the company said last week that it had lost 600,000 subscribers in the week of its price increase. Netflix stock tumbled as a result.
But despite the uproar, some analysts said the move by the company to split its services and raise prices is necessary and beneficial long term, assuming its customer base isn't permanently alienated.
That's where something more than an apology could help.
Bernstein suggested Netflix appease subscribers with a few free rentals.
"They need to make amends, not just apologize. There's a difference," he said.
I still haven't decided whether to cancel or not. I'll have to see how this impacts my monthly statement I don't pay attention to.
The whole "Qwikster" naming thing has inspired me to open an Internet delivery service for ham sandwiches. I'll call it Hamster.
Quote from: DontSayBanana on September 20, 2011, 09:29:06 AM
The whole "Qwikster" naming thing has inspired me to open an Internet delivery service for ham sandwiches. I'll call it Hamster.
Go on.
I'll have a pastrami on rye with spicy mustard.
(https://languish.org/forums/proxy.php?request=http%3A%2F%2Fslopeofhope.typepad.com%2F.a%2F6a00e0098982228833014e8bb340c8970d-800wi&hash=b7754cdd603e11e93877f0ae6862eeab6fba869e)
So, time to buy?
Quote from: garbon on September 19, 2011, 10:51:48 PM
Of course, the networks are fickle. Happens to all streaming stuff.
Losing Starz kinda hurts, but then again that content always looked horrible, like it was streaming from a VHS tape or something.
Quote from: derspiess on September 20, 2011, 02:05:42 PM
Quote from: garbon on September 19, 2011, 10:51:48 PM
Of course, the networks are fickle. Happens to all streaming stuff.
Losing Starz kinda hurts, but then again that content always looked horrible, like it was streaming from a VHS tape or something.
:yes:
It was very crappy looking.
Quote from: Habbaku on September 20, 2011, 12:39:07 PM
So, time to buy?
Really could be, I dunno. I'd prefer to let it prove it can go up a bit first.
While I did cancel my sub when they cranked up prices, I can't really fault them for doing so. Everything he said in that letter is pretty much true. The two businesses are very different from one another, and they almost certainly needed to be decoupled.
Quote from: Berkut on September 20, 2011, 03:37:30 PM
While I did cancel my sub when they cranked up prices, I can't really fault them for doing so. Everything he said in that letter is pretty much true. The two businesses are very different from one another, and they almost certainly needed to be decoupled.
I don't think I've heard anyone seriously arguing that the split itself shouldn't have been a net positive for the company- the bitching seems more about how badly things have been handled prior to and during this split.
I don't really see the point of a split. There are plenty of companies that offer multiple products. If the dvd-by-mail option is no longer profitable they should just shut it down. As for breaking up the bundle pricing, the bitching actually is more about the price going up than the company's "handling".
GF's point about the content costs probably has the most to do with it.
I love my Roku / Netflix-on-Demand setup, and I get a fair amount of use out of it.
No TV, haven't had it in years, but it's nice to be able to search for movies and TV series and watch it WHEN I WANT TO.
Totally worth the sticker price.
Most of the "tv" our family watches in through Netflicks now. Everyone can watch what they want when they want on the tvs, computers or laptops.
If we want to get new stuff that isnt on Netflicks we can watch it by buying that show on video on demand through our digital TV provider or by DVRing a show.
Does anyone actually watch live TV anymore?
Oooooooo! I do!
Quote from: AnchorClanker on September 20, 2011, 04:52:15 PM
I love my Roku / Netflix-on-Demand setup, and I get a fair amount of use out of it.
No TV, haven't had it in years, but it's nice to be able to search for movies and TV series and watch it WHEN I WANT TO.
Totally worth the sticker price.
:yes: We no longer have cable, just netflix. Got a laptop with a VGA+audio cable connected to the bigscreen TV downstairs.
Quote from: crazy canuck on September 20, 2011, 05:26:25 PM
Does anyone actually watch live TV anymore?
How else am I going to get an immediate ticket on the Sue Sylvester Express, destination:
horror?
Quote from: crazy canuck on September 20, 2011, 05:26:25 PM
Does anyone actually watch live TV anymore?
The only reason I have it, and will continue to have it even after I move back to Texas, is so I can watch soccer. If it weren't for that, I'd be cheesing it with the rest of you guys.
I watch a lot of shows a couple days/weeks after they air on Comcast On Demand. Don't want to wait 'til end of season though.
Quote from: crazy canuck on September 20, 2011, 05:26:25 PM
Most of the "tv" our family watches in through Netflicks now. Everyone can watch what they want when they want on the tvs, computers or laptops.
If we want to get new stuff that isnt on Netflicks we can watch it by buying that show on video on demand through our digital TV provider or by DVRing a show.
Does anyone actually watch live TV anymore?
Little thing called live sports makes cable TV still necessary for me.
Somebody gonna make millions playing live sports on the web.
Looks like Qwikster is over before it began. The reaction to the thing was so bad they decided to scrap the splitting idea.
Finally something they've done right. Not realizing the value added of leveraging the synergy of the DVD and streaming services was idiotic.
Quote from: DGuller on October 10, 2011, 01:41:15 PM
Finally something they've done right. Not realizing the value added of leveraging the synergy of the DVD and streaming services was idiotic.
:yes: Splitting the costs makes sense, but the services? Totally retarded. If it weren't a useful company to me, I'd love to see them crash and burn to ash for their hubris.
Good bye, Netflix CEO. :)
Poor Netflix, they seem so poorly managed.