Netflix Announcement??

[KaptKaos]

http://blog.netflix.com/2011/09/explanation-and-some-reflections.html

Did you see this? Thoughts?

IMO - its amazing to see a company step on it's dick so many times in just a few months; price increase, loss of content partner, splitting up of services and a stupid name for a spin-off. No wonder they're down 40%+.

[Brando]

Thanks for posting, Joe. I had to comment...

I don't understand... Is this an explanation? It reads more like a last will and testament. My family and I have used your services (multiple accounts, mind you) and the advantage over the rest was a combined service -- not two-distinctly-different-yet-separate-yet-combined-yet-segregated services -- that had more to offer than all of the dvd box rentals showing up on every street corner.

Instead of cutting DVD and streaming away from each-other maybe you should look more towards full-integration. That would make the Netflix service far superior to the competition. Seriously, you've already decimated brick-and-mortar movie rentals, so that should tell you something was going right.

This, however... Not so much. We, The Subscriber-Members , will tolerate a price change when service is reflected: More titles added, not being removed (Thanks Starz), adding Blue-Ray and Games... But starting off with Option 1, dissolving it and offering ONLY Option 2 or ONLY Option 3... We'll go to Option 4.

[Joeaksa]

If it costs me one penny more they have lost me as a customer...

[LeeH]

I'm imagining the meeting in Hasting's office... "Let's see... Our customers are extremely happy. We're making tons of money. Stock price is through the roof. We've decimated the competition. LET'S CHANGE EVERYTHING!!!"

I heard one reasonable explanation for this move, but it was just one analyst's theory. The theory is that Netflix cost for streaming may be based on their total number of customers. Since ALL customers are eligible for streaming they want to separate the two so when negotiating with companies like STARZ, they are able to show lower customer counts and thus lower their costs. Again, just one guy's theory.

We'll be moving our through the mail plan to Blockbusters. Netflix has removed any incentive to hang around.

[Spud]

Netflix is a victim of its own success.

Many of the contracts it has with content providers allowing for streaming of their content are going to expire in 2012. Now mind you, these contracts were written years ago, when there was very little streaming going on, and very little competition for streaming content, so Netflix had a pretty good deal going on.

Fast forward to today, Netflix has millions of customers, many of them streaming cotent, and there is lots of competition for those customers. The content providers see this as a big payday. They will be taking the opportunity in 2012 to jack up the cost to stream their content, if Netflix complains, somebody else will be happy to step in.

The other issue with these contracts is their limitations on how many streams they allow for each content. Once the streaming limit is reached Netflix has to pull that content from its streaming library, or pay much higher costs per stream. This is why you see little or no first run films avail for streaming. They would hit their limits way too quickly, and you'd have a large group of users that would not get to stream them, and a small group that did.

[widgeon13]

I went to 2 movies a month and two hours of streaming. If I want more of something I'll test out Apple TV and pay by the movie or the show.

I can't support a company which looks for me to pay a 100% increase in price, pretty stupid.

[Rick Lee]

They'll never get a dime of my business because their pop-up ads are everywhere and defeat any pop-up blocker I've ever had. I hope the crash and burn for this reason alone.

[fuelie600]

Originally Posted by widgeon13

I went to 2 movies a month and two hours of streaming. If I want more of something I'll test out Apple TV and pay by the movie or the show.

I can't support a company which looks for me to pay a 100% increase in price, pretty stupid.

I cancelled. I can rent 3-4 movies per month on AppleTV for the price. I wasn't really watching more than 2-3 per month on NF. The streaming selection sucks.

Very stupid move. Maybe they should reconsider and call it "Classic Coke, er Netflix."

[widgeon13]

I'll give it a try for $4.99 a month, can cancel any time.

[Hugh R]

I may drop it. The on-line doesn't interest me for the most part, and the DVDs really don't either. I've watched most of what they have that I'm interested in devoting a few hours to.

[gr8fl4porsche]

I went down to streaming only for my kids. Lots of family programming available but the movie selection is weak.

[jhynesrockmtn]

It will be interesting to watch this. I've had the streaming and 1 dvd for a while now. Most of their streaming content is crap 2nd rate movies and it's going to get worse based on their recent issues with contract renewals. The "apology" from their CEO didn't roll back their recent price in crease and announced they were separating the dvd piece from streaming which will make for a more complicated user experience. Looks like a huge mess in the making. I'm going to shop around having just dropped everything but basic cable. I'd like a decent streaming option and netflix isn't impressing me right now.

[Brando]

I'm thinking it's going to be a lot easier to get new releases on the street-corner-rental-boxes and find anything older on BitTorrent (or just buy it).

[campbellcj]

I'm an early customer - since 2002 - and agree with you guys that their 'strategy' in the last few months has been pretty tough to figure-out. We currently use the unlimited streaming + 1 disc plan, and frankly the cost is not a significant concern but there are lots of competing services circling like sharks. We have DirectTV, a PS3, Amazon Prime streaming, and an Apple TV to name a few.

[aigel]

The company was founded with the plan to stream. The DVDs were just going to warm them over and help get a customer base going. But the way to get the customers to switch is not to cut them off, rather than slowly wean them. Even at higher cost, running both services in parallel, with the same account, queue and business name would have been the way to go. Slowly bring the new movie content to streaming first and quit re-stocking the DVDs. People will switch over eventually. The issue here is arrogance first and now complete idiocy. I got an email from this CEO where he makes a complete fool of himself explaining the price increase with a company spin off that needs more explaining IMHO.

Personally, I could care less. I rather spend time interactively doing something, even this forum is more fun than watching a show ...

George

[Embraer]

i watch free stuff on amazon prime and hulu. lots of facebook chatter today about my friends all canceling their netflix.

[cstreit]

So wait... They haven't sent me any info on this.. First I've heard...

So does that mean my $8.99 1 DVD at a time plan is changing and I can't get streaming anymore? WHen I signed up I got both... That was the deal...

Frankly the streaming SUCKS because most movies are greater than 5 years old... What does this mean for existing customers?

[mikester]

I watch old TV on the streaming all the time. I use many different devices - I love the streaming but do wish I could get better movie content. I did just watch Iron Man 2 though via the streaming.

I guess my knowledge of the environment and my background in knowing what it takes to get content provides them with a bit of forgiveness. Plus - if I was really hurting for the $6 I'd just cancel it altogether.

I'm far less irritated with them than I am with my Cable company who keeps f'ing up my channels and not fixing it. I'd pay Netflix more if I could get the channels I wanted from them. I have GOT to go back and re-research getting HD over the air.

[LeeH]

Originally Posted by cstreit

So wait... They haven't sent me any info on this.. First I've heard...

So does that mean my $8.99 1 DVD at a time plan is changing and I can't get streaming anymore? WHen I signed up I got both... That was the deal...

Frankly the streaming SUCKS because most movies are greater than 5 years old... What does this mean for existing customers?

You missed the news on the 60% price increase? Your next bill will be around $16.

[widebody911]

Demonoid hasn't changed their prices; I'll stay there.