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Old October 20 2011, 08:45 PM   #357
Temis the Vorta
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Re: Netflix shoots itself in the foot... aka no more free streaming

J. Allen wrote: View Post
The note posted on Amazon.com's front page this morning:

Amazon.com wrote:
Dear Customers,

We have more good news for Amazon Prime members – Prime Instant Video is growing again. We've now licensed TV programs from PBS including day-after broadcast shows like Frontline and NOVA, more than 1,000 episodes of shows like Masterpiece, Antiques Roadshow, and popular Ken Burns documentaries The Civil War, Baseball, Jazz, and, for a limited time, the first episode of Prohibition.

PBS joins recently announced FOX television shows 24, Arrested Development, The X-Files, Ally McBeal, Buffy the Vampire Slayer, and The Wonder Years.
Coming soon, we'll be adding Malcolm in the Middle, King of the Hill, and episodes from Julia Child's classic cooking series, The French Chef. We continue to add new Prime Instant Video titles to our catalog at no additional cost. Prime membership remains $79 a year.

Looks like somebody's upping the game just a bit. I mean, sure, they're a long way off from taking Netflix down, but this is just a sign of what Netflix stands to lose if they can't hold it together as the race really begins.
The value to me of Netflix is the ability to get pretty much anything that's been released on DVD (that I've heard of anyway). I'm not interested in signing up for a Chinese menu of competing services, each with a different lineup. Life is complicated enough.

137th Gebirg wrote: View Post
J. Allen wrote: View Post
T'Boo wrote: View Post

No, their stockholders.

If they were listening to their customers, their price increase might have been 25%, not 60%.

So they have "one company" for both DVDs and streaming. BFD. Does nothing for me. 60% price increase meant I had to change my plan. Either pay more for the same product, or else adjust my plan (getting less product) for the same price (which is the same as paying more...)

No win for the customer. None whatsoever. So those of you keeping both streaming and DVD don't have to log into two different sites. Whoop de fucking doo.
Which may simply be a diversionary tactic anyway. Appease someone over a non-existent plot of land, and you win more square acreage while making the customer think you're listening to them and giving ground.

Netflix: "We're raising prices and eating babies!"
Customer: "What?! That's wrong!"
Netflix: "You're right. Eating babies is wrong. We won't eat any babies, and after this, no more price increases! See? We listen!"
Y'know, this makes a LOT of sense - never looked at it from that angle, but it definitely makes serious sense. It effectively misdirects almost everyone's attention away from the price gouge. This may have been their plan all along.
If it was all a diversionary tactic, it was the stupidest one in the history of diversionary tactics.

Nah, it was plain ole incompetence, a massive PR blunder. Netlfix has a problem - content providers are not going along with their game plan to move their business from DVDs in the mail to streaming, and Netflix doesn't have nearly the power to strongarm them. They should have let their customers understand that they, Netflix, is not at fault in this situation.

They could have diverted customer ire towards the studios by pretending to go along with Starz' arrogant insistence that its Sony and Disney titles be priced at a premium. Customers will never accept this, of course. When you walk into a movie theater, do you expect to pay more for a movie produced by Sony than by Universal or Paramount?

Nobody pays attention to what studio produces anything. Studios can't insist on premium pricing for products that the consumer does not regard as premium or even different from competitors. (This strategy might possibly work for Disney, which is unusual among studios in having a unique image.)

But Netflix could have played along and priced Sony and Disney at a premium, making damn sure that customers understood that it was coming from the studios, not from them. And then watch in glee as everyone deletes Sony and Disney movies from their queues. That would undermine the studios' delusional contention that they have the ability to price their products at a premium, which strengthens Netflix' hand.
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