Netflix lost me...

[dando]

I've been a member since 12/99, and I've dealt with their BS since then (low inventory, bad shipping, a price increase followed by a decrease, selling out to the studios to delay new releases for a so-called better streaming inventory (unfulfilled over a year later). How the heck they have a stock price >$200/share is beyond me. :saywhat:

http://blog.netflix.com/2011/07/netflix-introduces-new-plans-and.html

http://news.cnet.com/8301-13506_3-20078765-17/netflix-hikes-prices-adds-dvd-only-plan/?tag=topStories2

Looks like streaming isn't fulfilling its promise...gee I wonder why? They bet the ranch on streaming and now they pull this to screw both types of subscribers. :irked:

Those monkeys in the Super Bowl ads must be running Netflix. A certain company I work for raised monthly subs to $23.90 back in 2001 and lost millions of users. Idiots. :shakehead

-Kevin

[cameraman]

Looks like streaming isn't fulfilling its promise...gee I wonder why?

-Kevin

Probably because people like me are not interested in attempting to stream a movie when my internet connection doesn't even begin to approach Netflix's minimum required speed. And the local ISPs have flatly stated that they will never spend another dime to increase the bandwidth in this area.

[trish]

Yeah, I just finished reading my email about the change in plan (price increase). I'm not sure what I'm going to do about it if anything.

[dando]

Probably because people like me are not interested in attempting to stream a movie when my internet connection doesn't even begin to approach Netflix's minimum required speed. And the local ISPs have flatly stated that they will never spend another dime to increase the bandwidth in this area.

That's part of the problem. Plus, most people rely on wireless connections for streaming. The bigger issue is the streaming inventory sucks, so people are still relying on DVDs for new releases. They sold out to the studios to delay new releases to get more content, and that just hasn't happened.

-Kevin

[dando]

Yeah, I just finished reading my email about the change in plan (price increase). I'm not sure what I'm going to do about it if anything.

My problem is not grandfathering legacy customers. Folks like me that have been with them since the beginning. :saywhat: :shakehead Plus, I don't stream much and in the summer I rarely watch DVDs since we're outside, vacationing, etc., so they make jack off of me for doing almost nothing.

-Kevin

[High Sided]

sure glad i didn't sign up with the free trial they've been pushing online.

i did take advantage of the "been verified" free trial :tony:

looks like netflix is up for much bigger problems come 2012...
http://money.cnn.com/2011/07/08/technology/netflix_starz_contract/index.htm

[racer2c]

Netflix canceled as of yesterday. They suck.

[Don Quixote]

I was on the verge of signing up for the first time. Count me out now.

[Insomniac]

I'm sure they thought it out. I am surprised at what is essentially a $6/month increase (and really no discount for having both services).

I think they basically screwed themselves over by not streaming their entire DVD inventory. So when they thought the $2 add-on for 1 DVD wouldn't be used much, they found out that was not the case. It was too good a deal to pass up. $8 seems a bit much though. It should be a cheaper add-on for streaming, but I suspect that their streaming costs are starting to go up as the studios realize they can charge a lot more for streaming content.

I'd put my lawyers on finding out if they can stream stuff where they own physical media.

[WickerBill]

I'm dumping them. Back to Redbox for me when necessary. I sure won't use it 15 times a month, every month.

[dando]

I'm sure they thought it out. I am surprised at what is essentially a $6/month increase (and really no discount for having both services).

I think they basically screwed themselves over by not streaming their entire DVD inventory. So when they thought the $2 add-on for 1 DVD wouldn't be used much, they found out that was not the case. It was too good a deal to pass up. $8 seems a bit much though. It should be a cheaper add-on for streaming, but I suspect that their streaming costs are starting to go up as the studios realize they can charge a lot more for streaming content.

I'd put my lawyers on finding out if they can stream stuff where they own physical media.

Some analysis behind the change:

http://www.zdnet.com/blog/btl/netflixs-pricing-backlash-follow-the-money-churn-rates/52295?tag=contentBody;topStories

I don't think they anticipated the fallout in the social networks, and I expect that their churn rates will be significantly higher than anticipated (@ least initially). This isn't the first time they 'thought things out' and screwed the pooch. 6-12 mos. after they launched, waits for discs were extreme and took months to rectify. Add to this that distribution centers were moving what seemed like every other month, so times for discs to arrive varied widely. We had a distro center here, moved to Dayton, moved somewhere else and then back here. Rinse and repeat. :saywhat: Then a price increase, only being forced to rollback prices with Blockbuster and Wallyworld getting into the game. Then making the deal with the devil to delay new releases by 30 days to add more streaming content. Hasn't happened, which forced streaming subscribers to use the DVD service more than anticipated. Now this. Total and utter BS. So I checked the new plans on their site and my current plan (4-discs + streaming) is now $30/mo. 50%?!? Holy crap. No thank you.

-Kevin

[Andrew Longman]

Well. They killed Blockbuster and just about every independent video rental place. And now there isn't even a movie theater in my county. The one in the next county now charges $10 extra to serve me dinner with my movie whether I want it or not.

Why can't Netflix be as stupid as they want?

For me... IF I want to watch a movie, and given the crap Hollywood mostly makes that's a big if, I MAY pay to watch it off Directv or I go to the library and "rent" it for free. And I get to keep it for two weeks.

[Ankf00]

their streaming license costs increased by an order of mangitude, and they now have to compete w/ google & amazon for those contracts too.

straight cash homey [/randy moss]

[Insomniac]

their streaming license costs increased by an order of mangitude, and they now have to compete w/ google & amazon for those contracts too.

straight cash homey [/randy moss]

They didn't raise the streaming costs. There is no way they are trying to subsidize streaming with mail.

[Insomniac]

Some analysis behind the change:

http://www.zdnet.com/blog/btl/netflixs-pricing-backlash-follow-the-money-churn-rates/52295?tag=contentBody;topStories

I don't think they anticipated the fallout in the social networks, and I expect that their churn rates will be significantly higher than anticipated (@ least initially). This isn't the first time they 'thought things out' and screwed the pooch. 6-12 mos. after they launched, waits for discs were extreme and took months to rectify. Add to this that distribution centers were moving what seemed like every other month, so times for discs to arrive varied widely. We had a distro center here, moved to Dayton, moved somewhere else and then back here. Rinse and repeat. :saywhat: Then a price increase, only being forced to rollback prices with Blockbuster and Wallyworld getting into the game. Then making the deal with the devil to delay new releases by 30 days to add more streaming content. Hasn't happened, which forced streaming subscribers to use the DVD service more than anticipated. Now this. Total and utter BS. So I checked the new plans on their site and my current plan (4-discs + streaming) is now $30/mo. 50%?!? Holy crap. No thank you.

-Kevin

It will be interesting to see if the vocal on the Internet will translate to huge losses in subscribers. At least looking at this thread, I'd say 3 of the more vocal people about liking Netflix are gone. That's not the type of subscriber you want to lose.

[G.]

I was on the verge of signing up for the first time. Count me out now.
yep. Me too.

[RusH]

I used to use them. When I did, the DVD`s sent to the house were like 2 a month. Seems to me that most people will probably keep the streaming and go to a Redbox.
Or go to a competitor like Hulu+ and go to a Redbox ;)

[High Sided]

It will be interesting to see if the vocal on the Internet will translate to huge losses in subscribers.

netflix is losing tons of people per minute, gotta love it!

518 people here... Netflix rate change protest
http://www.facebook.com/pages/Netflix-rate-change-protest/127471810672703?sk=wall

2,340 people here... 1,000,000 people who will not stand for Netflix's new prices.
http://www.facebook.com/pages/1000000-people-who-will-not-stand-for-Netflixs-new-prices/126871404066238?ref=ts

[racer2c]

I'm understanding of the fluidity of emerging tech industries to an extent. Its the nature of the animal. However Netflix has rubbed me the wrong way for awhile now. I never get the feeling that they care about their existing costumer, only the potential costumer. In the beginning I enjoyed the 3 discs at a time feature. We would average 6 discs a month and for $12 a month that was a good value especially compared to cable rental etc. Then they added streaming. Yeah! It sucked but it would improve...it had too right?! Then they raised the price. Boo. Then they added BluRay. yeah! Then they raised the price for BluRay. Boo. Then they lowered the disc rental. Boo. Then they raised the price. Boo. Then they separate plans and don't give any break to those who want both plans. Boo. Their streaming selection still blows (and I doubt they will ever get first run movies). Boo.

Boo's > Yeahs.

[nrc]

Never signed up. We rent one or two a month from Amazon. I prefer the downloads, they have what we want, and it's no more expensive at that frequency.

For online video Netflix is like an all you can eat buffet with bad food.

[TravelGal]

yep. Me too.

Me three. I thought this might happen when I read about the disappearance of Sony from their offerings last month.

Today I saw somewhere (can't put my hand on it) that there is still a $7.99 option for discs though the mail. That would be enough for me. Still, I've lived this long without it. I thought I'd rent some blu-rays, that's all. I think the bigger issue is that they are not going to have much access to the movies/programs at all in a few years without having to pay beaucoup bucks. (cf the Sony business) Then you'll really see the price hikes.

Hope nobody here has their stock.

[Ankf00]

They didn't raise the streaming costs. There is no way they are trying to subsidize streaming with mail.

I don't know what their internal strategy is obviously, but apparently they think this model + whatever developments they have planned for the near future are how they want to address the cost structure as it's been developing recently, and how they see that cost structure playing out long term

[dando]

Today I saw somewhere (can't put my hand on it) that there is still a $7.99 option for discs though the mail. That would be enough for me.

They just created that plan...$7.98/mo. for one disc @ a time. $11.98/mo. for two @ a time. I currently have $19.99 for 4 discs.

-Kevin

[racer2c]

I don't know what their internal strategy is obviously, but apparently they think this model + whatever developments they have planned for the near future are how they want to address the cost structure as it's been developing recently, and how they see that cost structure playing out long term

Meh...they're just shooting in the wind before they go under.

[nissan gtp]

I dropped the physical disk option after our Blue Ray was blowed up by lightning. Don't use the online part so much, the choices aren't nearly as good. Might cancel it all.

[Insomniac]

I don't know what their internal strategy is obviously, but apparently they think this model + whatever developments they have planned for the near future are how they want to address the cost structure as it's been developing recently, and how they see that cost structure playing out long term

Me either. I think they are adjusting to their failed prediction that streaming was the (short term) future. That's why I don't think they would try and subsidize either side of the business with the other.

I'm sure they thought about it, but would anyone who is cancelling accept a model with a base price/month then a charge per disc?

[Ankf00]

Meh...they're just shooting in the wind before they go under.

maybe, maybe not. i'll bet on netflix's executive staff long before a lot of other companies

ipod's, then iphones, then ipads were overpriced underwhelming snakeoil. google was ridiculously overvalued, amazon would never turn a profit, farmville's dumb and not worth money, why would I want all my financial statements on a single website? tech's a weird world, and those of us here don't represent the breadth of consumers out there, for one, our frontal lobes work more often than not :gomer:

[WickerBill]

They are claiming their licensing will increase 5x over the next 4-6 years, to over $2B. While Netflix is the one directly screwing us, they're doing it because of our friends at the studios.

[Ankf00]

I think the Economist had a piece in Mar/Apr timeframe detailing the different channels where studios are getting squeezed these days. I listened to it on audio transcription instead of reading it so can't remember much in the way of numbers, but everything from cinema runs to video sales cycle to rental cycle to ondemand/ppv cycle has them flailing, I think...


Me either. I think they are adjusting to their failed prediction that streaming was the (short term) future. That's why I don't think they would try and subsidize either side of the business with the other.
personally, streaming seems f'ed to me b/c of the low rate of domestic fiber installation + telecom trying to implement usage-specific pricing, both landline & mobile. rural america has no fiber anywhere on the horizon, let alone cable (thank god for satellite at the ranch). but if I'm some tech exec in love with the streaming future, and I have a reasonable model in front of me that increases dvd rental revenue to prop up and help develop what they see as long term streaming growth, maybe I go for it, maybe I see streaming as a superior long term play vs. the infrastructure/overhead costs associated w/ rentals and mix revenue streams from one channel to the other

[Insomniac]

They are claiming their licensing will increase 5x over the next 4-6 years, to over $2B. While Netflix is the one directly screwing us, they're doing it because of our friends at the studios.

A la carte solves this problem. Let the consumers choose what they want with more transparent pricing and grouping. If Sony wants to charge insane amounts and another studio doesn't, let the user pick their catalogs by studio.

With all this shared costs stuff, the studios and content providers just keep on raising rates. Our cable/satellite bills go up what, $4-5/month? It won't be surprising when Netflix is doing the same thing.

[dando]

I think the Economist had a piece in Mar/Apr timeframe detailing the different channels where studios are getting squeezed these days. I listened to it on audio transcription instead of reading it so can't remember much in the way of numbers, but everything from cinema runs to video sales cycle to rental cycle to ondemand/ppv cycle has them flailing, I think...


Perhaps if they produced decent content to begin with and don't sign ridiculous contracts for stars to produce absolute dreck (yes, I'm talking about you, Will Ferrell) they wouldn't be flailing so much. :saywhat:

-Kevin

[dando]

they're doing it because of our friends at the studios.

Agreed. Who are passing along self-inflicted wounds to the consumers. In any case, a 60% price increase and price increases with reduction of services is simply overboard.

-Kevin

[WickerBill]

The thing is, if they made this announcement and also said "Every new release will be streamable within 30 days, and we will be working on our back catalog for streaming", then the vast majority would jump to streaming, saving them tens or hundreds of millions on warehousing, shipping, and maintenance.

My guess is they thought of this, and the studios said no.

[dando]

The thing is, if they made this announcement and also said "Every new release will be streamable within 30 days, and we will be working on our back catalog for streaming", then the vast majority would jump to streaming, saving them tens or hundreds of millions on warehousing, shipping, and maintenance.

My guess is they thought of this, and the studios said no.

Which begs the question about what real benefit they received from selling out to the studios delaying new releases for more streaming content. :confused:

-Kevin

[Insomniac]

Which begs the question about what real benefit they received from selling out to the studios delaying new releases for more streaming content. :confused:

I read they got wholesale pricing on the DVDs at a minimum. (Same deal for RedBox.)

[dando]

I read they got wholesale pricing on the DVDs at a minimum. (Same deal for RedBox.)

Nope.

http://gizmodo.com/5441950/netflix-is-losing-new-release-rentals


The upside of the deal is that Warner is offering up more movies for streaming on Netflix to make up for the lack of new releases. But don't expect this to be the only studio that makes this deal. Now that one has shown that Netflix is willing to play ball, the rest should follow. Weak, Netflix. Weak.

And Fox and Universal (Di$ney) also followed:

http://www.techdirt.com/articles/20100409/0940078951.shtml

The discount pricing on DVDs may have been a byproduct of the deals, but the basis was to get more streaming content. So, the question is....Where's the Beef? :irked:

-Kevin

[Insomniac]

The discount pricing on DVDs may have been a byproduct of the deals, but the basis was to get more streaming content. So, the question is....Where's the Beef? :irked:

I hope the difference is between our and their perception of more. Otherwise, their management is nowhere as good as we are being led to believe by the business press.

[TrueBrit]

Netflix canceled as of yesterday. They suck.
X2.


DVD delays, new releases non-existant, streaming libraries anemic at best, charge your customers double just because...#@%# ing stupid.

One less bill for me to pay. Thanks Netdicks!