Netflix changes again! Anyone get this email?

[DWGal210]

Thanks for this explanation; I can understand it better now.

The cable TV / Internet streaming etc quandary is certainly interesting. It'll be interesting in the coming months & years to see how it all pans out.

Look at it from Starz' perspective. They're not dragging their heels, they're trying to protect their very business from going under.

Netflix offered them like $700million (around there someplace, iirc), to be able to stream their content. Sounds great!

Except if you're Starz. Once Netflix is streaming their content, people no longer need to subscribe to Starz the channel. If people don't subscribe to the channel, there goes their main source of revenue and a large part of what's keeping them afloat in general.

If they lose subscribers to Netflix streaming, they lose the revenue that allows them to license movies and to create programming. Hence Netflix no longer wants to pay those astronomical licensing amounts - and Netflix can try to cut deals with the studios themselves, and cut Starz' out as the middleman.

Then Starz would cease to exist - if Netflix goes around them (and says to the studios, who need the cash to make the movies, 'we paid Starz $700 mil and Showtime $700 mil to license the movies they licensed from you, how bout we just pay you $1.5 billion for the direct licenses?') they lose subscribers who now have no reason to use their services.

Starz is trying to keep themselves relevant and afloat. If the other channels went Starz' way, Netflix will have a hard time increasing streaming content or getting relevant streaming content, unless they try to make the end run anyway. Starz has an argument to make with the studios, as to why the studios shouldn't cut them out and license with Netflix directly, as long as they keep their subscribers.

 

[Conservative Hippie]

We originally had 3 at a time, then cut to 2 at a time plus streaming when that became available, and last month changed to 1 at a time plus streaming. With this new change I honestly don't know what we'll do. Like a comment on the blog post said, it's about the movies, not the format. We may keep what we've got and just deal with Quixter, Netflix, Quickflix, whatever.

 

[Disneefun]

Just before the price increase went into effect, I suspended my account so I could have some time to think about what to do. Thank goodness I did that, because they've made it really easy for me to decide to cancel.

The last thing I need in my life is another website with another password with another bill. I was thinking about staying w/Netflix b/c, while it might have been more expensive with the price increase, it was at least convenient to have all my queues/billing/accounts together on one site. Now even that is gone, so I'm gone.

I work from home so going to redbox costs more in gas than it's worth since I'm not out and about that often. I'll go back to what I used to do which was buy DVD's from the sale and clearance racks, keep the movies I liked to build my own library and sell the others to recoup a little money back. I used to break about even doing that, so that's where I'm headed.

 

[Andtototoo]

Leverage, among other things. They know that as customers howl (as they are doing in this thread), it places more pressure on Netflix, which means Netflix will pay more for licensing rights than they might otherwise.

Until people figure out how to steal video content the way they steal musical content.

 

[jenny105]

I'm currently only subscribed to streaming, I dropped the DVD option. However, I may join up with that again once that add video games. That's pretty awesome.

 

[KatieCollette]

yeahh I dropped the DVD's as soon as they announced the change. We only got the dvd's like once a month because I always forgot we had them or to return them. Like redbox much better! Still kept the streaming though.

 

[java]

See your original post made it sound like there was nothing more current than 1977 and.or soft porn.. which is a mis-leading statement if you watched Tangled a month ago..

Sorry for misleading- my point just is that we watch maybe one a week and I would think we should be able to find at least a decent movie weekly. I loved having Tangled on there and really enjoyed that week. They keep suggesting Hot Tub Time Machine for me and I already watched that one several months ago and actually star reviewed it on their site- so I guess that's what makes me think they are light on content right now.

 

[kinntj]

I cancelled my DVD part. Biggest inconvenience for me is needing two separate queues now, that don't automatically update. I liked that when something in the DVD part became available, it automatically updated on my streaming/Roku.

I really use the streaming 99.99% of the time now anyway. My mom gets the DVD only, so if there is something we really want to see, she usually would want to see it as well (she comes over for dinner/movie every Friday night).

Might give Redbox a try, but it is 15 minutes away, so would have to plan with the grocery shopping trip. 30 minutes r/t = 1 gallon of gas, which then makes Redbox a $4.50 movie rental instead!

You may want to check Blockbuster express boxes too that work like Redbox. Redbox is at our local supermarket, but there's a Blockbuster Express box by our local gas station that's even closer.

I'm really not happy with this set up and after talking with DH, we may cancel the DVD portion. I agree with a PP who stated that Netflix is making all these changes and upped the price and no convenience or benefit to the customer. Why?

 

[bgirldeb]

Netflix user for 10+ years. Currently only on the streaming subscription to save money. The streaming price is reasonable, in my opinion.

What I've heard about Netflix recently that I didn't like is that they've started enforcing a streaming limit to where you can only stream one movie at a time. We have 6 or 7 devices which could stream netflix.

http://www.cnn.com/2011/TECH/web/09/07/netflix.streaming.limit.mashable/index.html

We haven't run into the error yet, only because their selection of instant movies is not that great. Starz is free with our cable, so we've seen pretty much all of the Starz movies we care to watch. I also don't think they have that great of a parental control aspect with the streaming.

We use it a lot for TV Shows (rewatching Mad Men from the beginning, and good miniseries like Downton Abbey, old Twilight Zone episodes), but we're running out of choices. Hopefully this change will cause them to have more content available. I don't have a problem with the cost.

 

[bgirldeb]

Sorry for misleading- my point just is that we watch maybe one a week and I would think we should be able to find at least a decent movie weekly. I loved having Tangled on there and really enjoyed that week. They keep suggesting Hot Tub Time Machine for me and I already watched that one several months ago and actually star reviewed it on their site- so I guess that's what makes me think they are light on content right now.

I agree with you.

 

[jlewisinsyr]

Until people figure out how to steal video content the way they steal musical content.

They're called torrents.

 

[HonnyDipp]

I just saw this tweet on Twitter

"We named it Qwikster because it will go out of business qwikly'

 

[PeterPan09]

I just saw this tweet on Twitter

"We named it Qwikster because it will go out of business qwikly'

 

[The Mystery Machine]

I'm currently only subscribed to streaming, I dropped the DVD option. However, I may join up with that again once that add video games. That's pretty awesome.

I will admit I am intrigued by that. Do we know the cost yet?

 

[jenny105]

I will admit I am intrigued by that. Do we know the cost yet?

Not yet. I guess right now it's in the development stages.

 

[SaraJayne]

I have no experience with Netflix (DVD or streaming) so take this as an "outsiders" perspective.

The company really seems to be imploding. Even from a peon non-business viewpoint, they seem to be making some questionable moves.

Losing over 600,000 customers in less than 2 months definitely isn't a good thing.

 

[HonnyDipp]

I dropped the DVD option back in September. I will re-join if they do video games. We tried GameFly over the summer and was very disappointed!

 

[DWGal210]

So what can Netflix do at this point? It seems to be a Catch-22. They need more $$ to offer better streaming content but trying to raise the money to do that is resulting in people jumping ship. So what should they do?? If you were at the helm, what would YOU do?

I have NO good ideas but I'm interested in hearing those who do.

 

[MrsJackSparrow4Life]

I just saw this tweet on Twitter

"We named it Qwikster because it will go out of business qwikly'

I actually believe that is what Netflix wants to happen. Months ago (even before the price increases) I heard a rumor that Netflix wanted to get out of the DVD business and just do instant streaming.

When they increased the price a lot of people canceled the DVD part of their membership and now that they have made it inconvenient to have both even more people are going to cancel. If enough people cancel the DVD part then they can send us an email stating there isn't enough people taking advantage of it to keep it running.

 

[PeterPan09]

I actually believe that is what Netflix wants to happen. Months ago (even before the price increases) I heard a rumor that Netflix wanted to get out of the DVD business and just do instant streaming.

When they increased the price a lot of people canceled the DVD part of their membership and now that they have made it inconvenient to have both even more people are going to cancel. If enough people cancel the DVD part then they can send us an email stating there isn't enough people taking advantage of it to keep it running.

I agree, I think that's exactly what they want to happen.