Netflix shoots itself in the foot... aka no more free streaming

[SPCTRE]

As this story on CNNMoney explains and even Netflix's own CEO Reed Hastings has revealed, Netflix will have to shell out millions and millions of dollars (if not billions) just to keep the content it currently offers in its Watch Instantly library. During June's D9 conference in California, Hastings readily admitted that it was going to cost money to deliver the kind of streaming experience customers demand: "Part of our goal is to make subscribers happy and part is to make our content partners really happy and part of that is writing really big checks," he said.

CNN reports that many of the contracts Netflix signed with the studios had a user cap. As Netflix blows by those caps, the contracts implode and Netflix loses access to the content. Paying a lot more money is one way to get the movie and TV shows back, but the new deals Netflix signs will be far more expensive than those the partners drafted three or four years ago.

http://www.pcmag.com/article2/0,2817,2388343,00.asp

There you go, or as Michael Pachter so succinctly put it on Twitter:

My thesis on Netflix price change: content owners squeezing them based on subscribers, they bifurcate to isolate streaming subs & lower cost

/thread

 

[Checkmate]

Corporate America screwing us is the American spirit...

Corporate America can't easily screw people over because the customer can simply not buy from them. Don't want to pay for Netflix's increases, then simply don't. Granted, you won't get their service, but that's how it's supposed to work, isn't it?

Consumers gave up their power years and years ago. The masses are far too lazy to use it, so the corporations have very little stopping them from doing whatever the fuck they want.

You cancelling your subscription has exactly 0 impact on anything.

 

[Sheep]

Consumers gave up their power years and years ago. The masses are far too lazy to use it, so the corporations have very little stopping them from doing whatever the fuck they want.

You cancelling your subscription has exactly 0 impact on anything.

One person cancelling their sub does nothing. 30% of your userbase cancelling will make a company take action (informal CNET poll estimates 30-40% planning to cancel).

However, you are correct that most people are too lazy to take action when things like this happen. That would be why cable companies get away with increasing fees at the rate they have.

 

[bigdaddy]

As this story on CNNMoney explains and even Netflix's own CEO Reed Hastings has revealed, Netflix will have to shell out millions and millions of dollars (if not billions) just to keep the content it currently offers in its Watch Instantly library. During June's D9 conference in California, Hastings readily admitted that it was going to cost money to deliver the kind of streaming experience customers demand: "Part of our goal is to make subscribers happy and part is to make our content partners really happy and part of that is writing really big checks," he said.

CNN reports that many of the contracts Netflix signed with the studios had a user cap. As Netflix blows by those caps, the contracts implode and Netflix loses access to the content. Paying a lot more money is one way to get the movie and TV shows back, but the new deals Netflix signs will be far more expensive than those the partners drafted three or four years ago.

http://www.pcmag.com/article2/0,2817,2388343,00.asp

There you go, or as Michael Pachter so succinctly put it on Twitter:

My thesis on Netflix price change: content owners squeezing them based on subscribers, they bifurcate to isolate streaming subs & lower cost

/thread

I was actually thinking about that. Netflix made streaming popular so studios obviously want more money. That's fine. If Netflix kicks some of the users away from streaming, or away all together than that would mean less streaming and studios might want less money again.

 

[Temis the Vorta]

And at 8 bucks a month for unlimited streaming, that's still a better deal than any of what amazon or comcast are offering: 2 bucks per episode? Piss on that.

Physical media is a thing of the past.

2x DVDs are $12/month. To get the price per disk down to $1 each, I only need to turn over 3 per week, and I average more like 4. At that price, I don't feel any need to complain. It's a far better deal than cable.

Corporate America screwing us is the American spirit...

Corporate America can't easily screw people over because the customer can simply not buy from them. Don't want to pay for Netflix's increases, then simply don't. Granted, you won't get their service, but that's how it's supposed to work, isn't it?

Or do what I did. Downgrade. I just saved 20%. If everyone saves 20%, that sends a message to Netflix.

The price increase wouldn't have been received so badly if Netflix had announced something, ANYTHING other than "hey, we're raising prices to give you the same thing you have now and if you don't like it, here's the link to cancel".

Yeah. This is a PR/brand image fuckup, not a pricing fuckup. Maybe they can't help the pricing issues, but they sure as shit can control their message. Heads should roll.

(informal CNET poll estimates 30-40% planning to cancel).

I'd be very interested to learn what the actual number turns out to be, both cancelling and downgrades. I'd expect a large number of Netflix customers (who aren't connected enough to even know about this story, or the CNET poll, etc) to not even realize that the price has been increased and not check their credit card bill. Corporations depend on inattention like that.

 

[BillJ]

Even at $19 a month Netflix for me seems like a good deal. Especially after paying $21 for me and the missus to see Horrible Bosses (horrible movie by the way) on Tuesday night.

 

[Temis the Vorta]

Really, it's bad? I was hoping Charlie Day was at least good in it. But even a marginal flick like that might stay on my Netflix queue. At less than $1, it's worth checking to see if whatever the minuses are, aren't so minus to me.

 

[BillJ]

Really, it's bad? I was hoping Charlie Day was at least good in it. But even a marginal flick like that might stay on my Netflix queue. At less than $1, it's worth checking to see if whatever the minuses are, aren't so minus to me.

Rotten Tomatoes seems to like it. So what do I know?

 

[Sheep]

(informal CNET poll estimates 30-40% planning to cancel).

I'd be very interested to learn what the actual number turns out to be, both cancelling and downgrades. I'd expect a large number of Netflix customers (who aren't connected enough to even know about this story, or the CNET poll, etc) to not even realize that the price has been increased and not check their credit card bill. Corporations depend on inattention like that.

Of course the number actually cancelling won't be close to 30-40% since only a vocal minority of internet ragers voted, but if it's even 10% that should draw some attention.

 

[Robert Maxwell]

Really, it's bad? I was hoping Charlie Day was at least good in it. But even a marginal flick like that might stay on my Netflix queue. At less than $1, it's worth checking to see if whatever the minuses are, aren't so minus to me.

I liked it though I didn't think it was as good as some people are claiming.

 

[Temis the Vorta]

Really, it's bad? I was hoping Charlie Day was at least good in it. But even a marginal flick like that might stay on my Netflix queue. At less than $1, it's worth checking to see if whatever the minuses are, aren't so minus to me.

Rotten Tomatoes seems to like it. So what do I know?

Netflix is giving me almost-4 stars. That's nicely over the bar I've set for rentals of 3 1/2 stars. Above that, I'll usually like the movie. (However, when a movie has just released, sometimes there simply aren't enough reviews for accuracy. That's another reason to wait for the DVD, by which time, the ratings have shaken out.)

Blockbuster to the rescue!

Rival Blockbuster has just pounced on Netflix's public relations problem, announcing that it is launching a nationwide promotion in which existing Netflix customers who switch to one of Blockbuster's two Total Access plans (1 disc at a time for $9.99 a month or 2 discs at a time for $14.99 a month) will receive a 30-day free trial.

WTF, that's $3 more than I can get at evil ole Netflix. No wonder they're bankrupt.

 

[Harvey]

True, although the five in-store exchanges have the benefit of reducing the time between getting discs. Still, I prefer Netflix's service.

 

[Temis the Vorta]

True, although the five in-store exchanges have the benefit of reducing the time between getting discs. Still, I prefer Netflix's service.

There used to be a Blockbuster w/n walking distance but it's long gone. My mailbox is much closer. I ain't driving and fighting for parking just to return disks!

 

[Harvey]

Yeah, that's a real problem for a lot of people. I have a Blockbuster store a few blocks away from me, which I've bought quite a few $4 Blu-Rays from. But I've seen a lot of others -- even around here in Los Angeles -- that were closed or closing.

 

[Captain Craig]

True, although the five in-store exchanges have the benefit of reducing the time between getting discs. Still, I prefer Netflix's service.

I have to drive 20 min to get to a Blockbuster now.
The one 5min away closed.
The one 10min away closed.

Blockbuster isn't appealing to me still, even with this offer.

 

[bigdaddy]

I cannot even tell you where there is a Blockbuster now.

 

[1001001]

True, although the five in-store exchanges have the benefit of reducing the time between getting discs. Still, I prefer Netflix's service.

There used to be a Blockbuster w/n walking distance but it's long gone. My mailbox is much closer. I ain't driving and fighting for parking just to return disks!

And streaming is even less hassle! No mailing, no leaving the house....





Yes, our local Blockbuster went out of business a couple of months ago. We have those redbox things at our local grocery store. My wife gets those things once in a while.

Streaming really has to be the wave of the future. Whatever cost structure between netflix and the studios will support streaming everything will end up being the final word, I think.

At least until they start beaming movies directly into our brains.

 

[Professor Zoom]

Yeah, I would have to do a google search to find one...

As I use both, Blockbuster's deal is still teh sux.

Not sure what we'll do...

 

[Temis the Vorta]

True, although the five in-store exchanges have the benefit of reducing the time between getting discs. Still, I prefer Netflix's service.

There used to be a Blockbuster w/n walking distance but it's long gone. My mailbox is much closer. I ain't driving and fighting for parking just to return disks!

And streaming is even less hassle! No mailing, no leaving the house....

I might have mentioned this before, but streaming doesn't cover all the options in my queue. Right now, DVD=254; Instant=63. Until there's 100% parity (and I ain't holding my breath!), and considering that Netflix is now forcing us to choose, I have to opt for DVD.

Streaming really has to be the wave of the future. Whatever cost structure between netflix and the studios will support streaming everything will end up being the final word, I think.

That's assuming Netflix can ever get streaming rights to everything. From everything I've read, that is a very high hurdle. Studios know the value of streaming and will throw up barriers.

 

[RoJoHen]

I cannot even tell you where there is a Blockbuster now.

We still have one.

And Family Video just opened a new store!

Not sure how that's possible, but they are expanding.