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Author Topic: Netflix splitting DVD and Streaming fees (now splitting into two entities!!!)  (Read 5620 times)
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Blackadar
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« Reply #40 on: July 13, 2011, 02:06:04 PM »

Quote from: pr0ner on July 13, 2011, 12:56:26 PM

Quote from: Blackadar on July 13, 2011, 12:39:53 PM

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Doubling my price for reduced services all within the last year is really the deal breaker.

Their streaming licensing fees are about to go up 1000% in 2 years.  What do you expect?

If they do go up 1000%, then this won't help.  They'll just go out of business.  Even though they're doing well in revenues and profits, they can't pay a billion dollars for rights from various content providers.  They simply can't absorb that kind of increase.

Plus, I really don't care.  That's their problem.  I'm evaluating the value of Netflix against Redbox, Hulu, increasing my cable channels and yes, even Bittorrent.  Netflix doesn't seem like the best value for me at $16 than it did at $8 given the other entertainment options.
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ibdoomed
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« Reply #41 on: July 13, 2011, 02:08:57 PM »

Quote from: hepcat on July 13, 2011, 02:04:39 PM

Quote from: ibdoomed on July 13, 2011, 12:52:21 PM

/em hugs his Blockbuster.

/em blockbuster reaches into ibdoomed's back pocket during the hug and steals his wallet.

That's only what you think you saw. Since I keep my wallet in my front pocket, that was just BB grabbing a little ass during the hug. We're tight like that.
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« Reply #42 on: July 13, 2011, 02:18:29 PM »

Quote from: ibdoomed on July 13, 2011, 02:08:57 PM

Quote from: hepcat on July 13, 2011, 02:04:39 PM

Quote from: ibdoomed on July 13, 2011, 12:52:21 PM

/em hugs his Blockbuster.

/em blockbuster reaches into ibdoomed's back pocket during the hug and steals his wallet.

That's only what you think you saw. Since I keep my wallet in my front pocket, that was just BB grabbing a little ass during the hug. We're tight like that.

buttbuddies.  icon_smile
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« Reply #43 on: July 13, 2011, 02:38:19 PM »

Quote from: gellar on July 12, 2011, 07:29:57 PM

Quote from: Jumangi on July 12, 2011, 07:09:32 PM

Netflix wants people to drop their DVD/Bluray plans. The mailing costs, buying discs, and running the distribution centers eats up allot of their money. Plus when the next round of licsensing deals starts to come around they will cost them allot more.

I sincerely doubt that.  That distribution has proven to be profitable over the years (and actually only gotten more profitable) and is their competitive differentiator.  Their streaming content is very similar to Amazons.  Without the physical disc model, Netflix would only be able to compete on price/platform, neither of which have high barriers to entry.

There's no doubt about it, its What Netflix's CEO has said himself. Look at the name, its not DVD's by mail, its Netflix. Streaming has always beenthe end goal for them. DVD's are really expensive to do. Also IMO Netflix's streaming library is better than Amazon's plus they are on many more devices tahn Amazon.
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« Reply #44 on: July 13, 2011, 02:42:53 PM »

Quote from: Jumangi on July 13, 2011, 02:38:19 PM

Quote from: gellar on July 12, 2011, 07:29:57 PM

Quote from: Jumangi on July 12, 2011, 07:09:32 PM

Netflix wants people to drop their DVD/Bluray plans. The mailing costs, buying discs, and running the distribution centers eats up allot of their money. Plus when the next round of licsensing deals starts to come around they will cost them allot more.

I sincerely doubt that.  That distribution has proven to be profitable over the years (and actually only gotten more profitable) and is their competitive differentiator.  Their streaming content is very similar to Amazons.  Without the physical disc model, Netflix would only be able to compete on price/platform, neither of which have high barriers to entry.

There's no doubt about it, its What Netflix's CEO has said himself. Look at the name, its not DVD's by mail, its Netflix. Streaming has always beenthe end goal for them. DVD's are really expensive to do. Also IMO Netflix's streaming library is better than Amazon's plus they are on many more devices tahn Amazon.

Got a cite for that?
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« Reply #45 on: July 13, 2011, 02:43:16 PM »

Quote from: Blackadar on July 13, 2011, 02:06:04 PM

Quote from: pr0ner on July 13, 2011, 12:56:26 PM

Quote from: Blackadar on July 13, 2011, 12:39:53 PM

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Doubling my price for reduced services all within the last year is really the deal breaker.

Their streaming licensing fees are about to go up 1000% in 2 years.  What do you expect?

If they do go up 1000%, then this won't help.  They'll just go out of business.  Even though they're doing well in revenues and profits, they can't pay a billion dollars for rights from various content providers.  They simply can't absorb that kind of increase.

Plus, I really don't care.  That's their problem.  I'm evaluating the value of Netflix against Redbox, Hulu, increasing my cable channels and yes, even Bittorrent.  Netflix doesn't seem like the best value for me at $16 than it did at $8 given the other entertainment options.

Whatever moral high ground you may have had died when you said Bittorrent.   Roll Eyes
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Jumangi
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« Reply #46 on: July 13, 2011, 02:43:25 PM »

I'd like to know what are the better options than Netflix? Really do the math people. Hulu? thats a joke. Redbox? You have more immediate service, but its a limited selection since the kiosks can only hold so many titles and you have to go back and forth to the kiosk. Amazon or Apple? Rent a few movies from them and you can spend what the combined monthly fee is even with the price hike. Netflix definately lost its terrific value which is why so many went with them in the first but its not like they suck now. All the other options people mention still have their own disadvatages too.
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« Reply #47 on: July 13, 2011, 02:47:40 PM »

Quote from: pr0ner on July 13, 2011, 01:14:11 PM

Quote from: rshetts2 on July 13, 2011, 01:10:09 PM

Quote from: pr0ner on July 13, 2011, 12:56:26 PM

Quote from: Blackadar on July 13, 2011, 12:39:53 PM

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Doubling my price for reduced services all within the last year is really the deal breaker.

Their streaming licensing fees are about to go up 1000% in 2 years.  What do you expect?

I expect them to continue raising their prices until they go out of business. 

 icon_lol

NFLX investors would disagree with that statement - the stock is up $8.50 in pre-market trading this morning.

It recovered losses from the previous day. On June 11th it closed at 300.72   it opened today at 300.70 and is now down to 297    Yep, you got me on that one!  Seriously,  the stock price is meaningless at this point.  If they face a mass exodus on September 1st, what do you think the price is going to do then?  They are a subscription based service.  Losing subscribers is never good and will only end up jacking up the price once again for those who stay on.  
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Jumangi
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« Reply #48 on: July 13, 2011, 02:48:30 PM »

Quote from: pr0ner on July 13, 2011, 02:42:53 PM

Quote from: Jumangi on July 13, 2011, 02:38:19 PM

Quote from: gellar on July 12, 2011, 07:29:57 PM

Quote from: Jumangi on July 12, 2011, 07:09:32 PM

Netflix wants people to drop their DVD/Bluray plans. The mailing costs, buying discs, and running the distribution centers eats up allot of their money. Plus when the next round of licsensing deals starts to come around they will cost them allot more.

I sincerely doubt that.  That distribution has proven to be profitable over the years (and actually only gotten more profitable) and is their competitive differentiator.  Their streaming content is very similar to Amazons.  Without the physical disc model, Netflix would only be able to compete on price/platform, neither of which have high barriers to entry.

There's no doubt about it, its What Netflix's CEO has said himself. Look at the name, its not DVD's by mail, its Netflix. Streaming has always beenthe end goal for them. DVD's are really expensive to do. Also IMO Netflix's streaming library is better than Amazon's plus they are on many more devices tahn Amazon.

Got a cite for that?

Dude seriously...its called Google. Hastings has done a hundred interviews where he talks about streaming and transitioning to it being Netflix's future not physical media.
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« Reply #49 on: July 13, 2011, 02:58:31 PM »

Quote from: Jumangi on July 13, 2011, 02:48:30 PM

Quote from: pr0ner on July 13, 2011, 02:42:53 PM

Quote from: Jumangi on July 13, 2011, 02:38:19 PM

Quote from: gellar on July 12, 2011, 07:29:57 PM

Quote from: Jumangi on July 12, 2011, 07:09:32 PM

Netflix wants people to drop their DVD/Bluray plans. The mailing costs, buying discs, and running the distribution centers eats up allot of their money. Plus when the next round of licsensing deals starts to come around they will cost them allot more.

I sincerely doubt that.  That distribution has proven to be profitable over the years (and actually only gotten more profitable) and is their competitive differentiator.  Their streaming content is very similar to Amazons.  Without the physical disc model, Netflix would only be able to compete on price/platform, neither of which have high barriers to entry.

There's no doubt about it, its What Netflix's CEO has said himself. Look at the name, its not DVD's by mail, its Netflix. Streaming has always beenthe end goal for them. DVD's are really expensive to do. Also IMO Netflix's streaming library is better than Amazon's plus they are on many more devices tahn Amazon.

Got a cite for that?

Dude seriously...its called Google. Hastings has done a hundred interviews where he talks about streaming and transitioning to it being Netflix's future not physical media.

The burden is on the person who gave the argument, not the person challenging it.

Besides, I can back up my point.

Quote
Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didnít anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering. Reflecting our confidence that DVDs by mail is a long-term business for us, we are also establishing a separate and distinct management team solely focused on DVDs by mail, led by Andy Rendich, our Chief Service and Operations Officer and an 11 year veteran of Netflix.

Can you?
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« Reply #50 on: July 13, 2011, 03:01:07 PM »

Quote from: rshetts2 on July 13, 2011, 02:47:40 PM

Quote from: pr0ner on July 13, 2011, 01:14:11 PM

Quote from: rshetts2 on July 13, 2011, 01:10:09 PM

Quote from: pr0ner on July 13, 2011, 12:56:26 PM

Quote from: Blackadar on July 13, 2011, 12:39:53 PM

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Doubling my price for reduced services all within the last year is really the deal breaker.

Their streaming licensing fees are about to go up 1000% in 2 years.  What do you expect?

I expect them to continue raising their prices until they go out of business. 

 icon_lol

NFLX investors would disagree with that statement - the stock is up $8.50 in pre-market trading this morning.

It recovered losses from the previous day. On June 11th it closed at 300.72   it opened today at 300.70 and is now down to 297    Yep, you got me on that one!  Seriously,  the stock price is meaningless at this point.  If they face a mass exodus on September 1st, what do you think the price is going to do then?  They are a subscription based service.  Losing subscribers is never good and will only end up jacking up the price once again for those who stay on.  

The minority (and in this case, a very small minority) is always the loudest.  For a subscriber base of 23.6 million as of three months ago, the people yelling on blogs and on Facebook and on GT and on OO are a miniscule minority.
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« Reply #51 on: July 13, 2011, 03:04:38 PM »

As I just cancelled HBO, I can and will absorb the cost.  I just need to shape my usage into actually watching those movies and not wind up paying the cost that it would be to buy a DVD because of how long I hold onto the disc.
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« Reply #52 on: July 13, 2011, 03:12:39 PM »

Their subscriptions page just updated with a note about what your price will be come Sept 1.  Looks like my unlimited streaming + 2 dvd and bluray will only go up $3.  I may keep it all after all.
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« Reply #53 on: July 13, 2011, 03:22:07 PM »

Quote from: leo8877 on July 13, 2011, 03:12:39 PM

Their subscriptions page just updated with a note about what your price will be come Sept 1.  Looks like my unlimited streaming + 2 dvd and bluray will only go up $3.  I may keep it all after all.

NO!  YOU MUST QUIT IN RIGHTEOUS WHARGARBL FURY!!!!!!!


 Tongue

I see the update:

Quote
The price of your Unlimited Streaming + 2 DVDs out at-a-time (Unlimited) plan will change to $22.98 (including $3.00 for Blu-ray)() (plus any applicable tax)

I'm paying $17.98 now, so that's 5 bucks.  no biggie.
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« Reply #54 on: July 13, 2011, 03:23:52 PM »

What I'm seeing (and Pr0ner's link backs this up) is a lot of people going to either DVD-only or streaming-only plans. It seems that Netflix wants to split these businesses, for whatever internal reasons -- maybe to make them easier to price separately as costs diverge, or maybe ultimately to divest themselves of one or the other.
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Blackadar
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« Reply #55 on: July 13, 2011, 04:10:33 PM »

Quote from: pr0ner on July 13, 2011, 02:43:16 PM

Quote from: Blackadar on July 13, 2011, 02:06:04 PM

Quote from: pr0ner on July 13, 2011, 12:56:26 PM

Quote from: Blackadar on July 13, 2011, 12:39:53 PM

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Doubling my price for reduced services all within the last year is really the deal breaker.

Their streaming licensing fees are about to go up 1000% in 2 years.  What do you expect?

If they do go up 1000%, then this won't help.  They'll just go out of business.  Even though they're doing well in revenues and profits, they can't pay a billion dollars for rights from various content providers.  They simply can't absorb that kind of increase.

Plus, I really don't care.  That's their problem.  I'm evaluating the value of Netflix against Redbox, Hulu, increasing my cable channels and yes, even Bittorrent.  Netflix doesn't seem like the best value for me at $16 than it did at $8 given the other entertainment options.

Whatever moral high ground you may have had died when you said Bittorrent.   Roll Eyes

If you want to play NetNanny, please come on over and search my PC for any illegal movies.  It seems that you're going to be sorely disappointed when you don't find any.  There's no "moral high ground" in a discussion about Netflix pricing.  If you're trying to find some sort of high ground, you're just being a douche instead.
« Last Edit: July 13, 2011, 04:25:01 PM by Blackadar » Logged

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Blackadar
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« Reply #56 on: July 13, 2011, 04:22:00 PM »

Quote from: Jumangi on July 13, 2011, 02:43:25 PM

I'd like to know what are the better options than Netflix? Really do the math people. Hulu? thats a joke. Redbox? You have more immediate service, but its a limited selection since the kiosks can only hold so many titles and you have to go back and forth to the kiosk. Amazon or Apple? Rent a few movies from them and you can spend what the combined monthly fee is even with the price hike. Netflix definately lost its terrific value which is why so many went with them in the first but its not like they suck now. All the other options people mention still have their own disadvatages too.

Better is going to be subjective.  In my particular case, Netflix was a better value than many options.  Now, a whole host of "comparables" will be evaluated, including:

Increasing my DISH package to include more channels
HBO
Showtime
Cinemax
Redbox
Hulu
Blockbuster
Purchasing DVDs
Movies on Demand

In other words, by increasing their prices, the subjective value of their services now gets compared to other entertainment possibilities that wouldn't have been considered before.  All have pros and cons to them, it's just that the value of Netflix isn't head-and-shoulders above the rest of the options.  Or, in economist's terms, increasing the price on a very elastic service with many substitutes will cost you customers, although it may have the desired effect and increase overall revenues.
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« Reply #57 on: July 13, 2011, 04:28:47 PM »

I worry about Netflix's business model over the next few years.  The large licensing fee increases will hurt (it won't be 1000%), but when you combine that with potential customer bandwidth caps, reduced mail service, Internet congestion and streaming from direct content providers you realize they face some serious challenges.  They're certainly not insurmountable (unless everything breaks against Netflix), but it should be interesting from a business standpoint to see how they react to a rather dynamic market.
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« Reply #58 on: July 13, 2011, 04:37:50 PM »

Quote from: pr0ner on July 13, 2011, 03:01:07 PM

Quote from: rshetts2 on July 13, 2011, 02:47:40 PM

Quote from: pr0ner on July 13, 2011, 01:14:11 PM

Quote from: rshetts2 on July 13, 2011, 01:10:09 PM

Quote from: pr0ner on July 13, 2011, 12:56:26 PM

Quote from: Blackadar on July 13, 2011, 12:39:53 PM

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Doubling my price for reduced services all within the last year is really the deal breaker.

Their streaming licensing fees are about to go up 1000% in 2 years.  What do you expect?

I expect them to continue raising their prices until they go out of business. 

 icon_lol

NFLX investors would disagree with that statement - the stock is up $8.50 in pre-market trading this morning.

It recovered losses from the previous day. On June 11th it closed at 300.72   it opened today at 300.70 and is now down to 297    Yep, you got me on that one!  Seriously,  the stock price is meaningless at this point.  If they face a mass exodus on September 1st, what do you think the price is going to do then?  They are a subscription based service.  Losing subscribers is never good and will only end up jacking up the price once again for those who stay on. 

The minority (and in this case, a very small minority) is always the loudest.  For a subscriber base of 23.6 million as of three months ago, the people yelling on blogs and on Facebook and on GT and on OO are a miniscule minority.

I am constantly amused that people who think companies make these decisions in a vacuum.  There is almost no chance Netflix will experience a mass exodus.  They did months upon months of research, projections, testing, market analysis and decided that both in the short or long term this is a good decision.  Smart people made this decision, not angry people on the internet.

Angry people on the internet are well within their rights to change or cancel their service, but Netflix isn't going anywhere in the short term.  They are doing phenomenally well and are run by people who know what they are doing.
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« Reply #59 on: July 13, 2011, 04:40:52 PM »

it may not be 1000% increase in licensing costs, but it's probably going to be a lot:

Quote
Pachter predicts Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.
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« Reply #60 on: July 13, 2011, 04:51:36 PM »

As crazy as it sounds right now, I think it's possible that the streaming product line may actually end up being more expensive to operate than the dvd product line, even with the shipping, wharehousing, and employee overhead.  It sounds like electronic media licensing is like the new wild west, without a lot of standardization or industry regulation.  I'd prefer for Netflix to pass on price increases tied specifically to the streaming side of the business to streaming customers, and not impact the dvd customer.

If the movie production companies, streaming service providers (like Netflix), and the broadband ISPs can't figure out how to reasonably price watching steaming movies and shows, they will all be collectively shooting themselves in the face.    

      
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« Reply #61 on: July 13, 2011, 04:58:28 PM »

Quote from: CeeKay on July 13, 2011, 04:40:52 PM

it may not be 1000% increase in licensing costs, but it's probably going to be a lot:

Quote
Pachter predicts Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.

That's a 1000% increase, CeeKay.   icon_razz
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« Reply #62 on: July 13, 2011, 05:00:50 PM »

Quote from: Blackadar on July 13, 2011, 04:10:33 PM

Quote from: pr0ner on July 13, 2011, 02:43:16 PM

Quote from: Blackadar on July 13, 2011, 02:06:04 PM

Quote from: pr0ner on July 13, 2011, 12:56:26 PM

Quote from: Blackadar on July 13, 2011, 12:39:53 PM

Quote from: pr0ner on July 13, 2011, 04:10:51 AM

Crazy that $6/month or less of an increase is such a deal breaker for so many people.

Doubling my price for reduced services all within the last year is really the deal breaker.

Their streaming licensing fees are about to go up 1000% in 2 years.  What do you expect?

If they do go up 1000%, then this won't help.  They'll just go out of business.  Even though they're doing well in revenues and profits, they can't pay a billion dollars for rights from various content providers.  They simply can't absorb that kind of increase.

Plus, I really don't care.  That's their problem.  I'm evaluating the value of Netflix against Redbox, Hulu, increasing my cable channels and yes, even Bittorrent.  Netflix doesn't seem like the best value for me at $16 than it did at $8 given the other entertainment options.

Whatever moral high ground you may have had died when you said Bittorrent.   Roll Eyes

If you want to play NetNanny, please come on over and search my PC for any illegal movies.  It seems that you're going to be sorely disappointed when you don't find any.  There's no "moral high ground" in a discussion about Netflix pricing.  If you're trying to find some sort of high ground, you're just being a douche instead.

You stay classy.
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« Reply #63 on: July 13, 2011, 05:15:59 PM »

Quote from: pr0ner on July 13, 2011, 04:58:28 PM

Quote from: CeeKay on July 13, 2011, 04:40:52 PM

it may not be 1000% increase in licensing costs, but it's probably going to be a lot:

Quote
Pachter predicts Netflix's streaming content licensing costs will rise from $180 million in 2010 to a whopping $1.98 billion in 2012.

That's a 1000% increase, CeeKay.   icon_razz

That's only a prediction though, so it 'may not be 1000%'. Even if it's not that it's going to be a lot.
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« Reply #64 on: July 13, 2011, 05:22:27 PM »

Poll results:

http://www.businessinsider.com/netflix-poll-results-2011-7
http://www.geekwire.com/2011/poll-time-dump-netflix

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« Reply #65 on: July 13, 2011, 05:22:34 PM »

Quote from: Blackadar on July 13, 2011, 04:10:33 PM


If you want to play NetNanny, please come on over and search my PC for any illegal movies.  It seems that you're going to be sorely disappointed when you don't find any.  There's no "moral high ground" in a discussion about Netflix pricing.  If you're trying to find some sort of high ground, you're just being a douche instead.

What if I searched for illegal TV shows? Just curious.
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« Reply #66 on: July 13, 2011, 05:39:35 PM »

Quote from: Teggy on July 13, 2011, 05:22:34 PM

Quote from: Blackadar on July 13, 2011, 04:10:33 PM


If you want to play NetNanny, please come on over and search my PC for any illegal movies.  It seems that you're going to be sorely disappointed when you don't find any.  There's no "moral high ground" in a discussion about Netflix pricing.  If you're trying to find some sort of high ground, you're just being a douche instead.

What if I searched for illegal TV shows? Just curious.

What if I searched for "Elderly Love:  Gum on Over!" or "So Many Housepets, So Little Time"?
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« Reply #67 on: July 13, 2011, 05:53:23 PM »

Quote from: pr0ner on July 13, 2011, 05:00:50 PM

You stay classy.

If you're going to act like a snarky asshole, don't be surprised when someone treats you like one.
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« Reply #68 on: July 13, 2011, 05:55:55 PM »

Quote from: Blackadar on July 13, 2011, 05:53:23 PM

Quote from: pr0ner on July 13, 2011, 05:00:50 PM

You stay classy.

If you're going to act like a snarky asshole, don't be surprised when someone treats you like one.

What happened to "if the douche fits, wear it"? 

As I said, you stay classy.
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« Reply #69 on: July 13, 2011, 06:04:38 PM »

Quote from: pr0ner on July 13, 2011, 05:55:55 PM

Quote from: Blackadar on July 13, 2011, 05:53:23 PM

Quote from: pr0ner on July 13, 2011, 05:00:50 PM

You stay classy.

If you're going to act like a snarky asshole, don't be surprised when someone treats you like one.

What happened to "if the douche fits, wear it"? 

As I said, you stay classy.

What are you on about now?

I'll stay classy and you stay snarky.  Let us know how that works out for you.
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« Reply #70 on: July 13, 2011, 06:06:39 PM »

Girls, girls, girls...can we just agree that we'll probably never know how Isaac the bartender on The Love Boat was able to seemingly get to any wet bar on that ship within a matter of seconds?

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« Reply #71 on: July 13, 2011, 06:16:49 PM »

Quote from: hepcat on July 13, 2011, 06:06:39 PM

Girls, girls, girls...can we just agree that we'll probably never know how Isaac the bartender on The Love Boat was able to seemingly get to any wet bar on that ship within a matter of seconds?



I thought it was the girls that Issac was getting wet.
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« Reply #72 on: July 14, 2011, 11:56:00 AM »

I'm in the (apparently very) small minority when I'm kinda happy about this. I watch tons of streaming on the XBox 360 (I probably average an hour a day) and rarely ever use DVDs (I think so far this year I've got maybe 4). I probably should have switch to streaming only a long time ago, but I held on to the DVD for $2 a month because it wasn't much money even if I rarely used it. It could be that they're trying to get people like me to drop the DVDs to lower costs.

My plan is $8/month to Netflix for streaming only, then use Zune for rentals. We already get Doctor Who via Zune and I've been happy with the quality there so far (Silly U-Verse and no BBC HD).

I think when its all said and done and people do a serious evaluation (not the RAGE QUIT! like now) they'll pick DVD or Streaming and call it a day. I'm pretty confident that at least part of the problem was the way they presented it. From the sounds of things, most people feel that the DVDs worth the $8 and the streaming was the $2 'extra', which is the opposite of how they said it. I think if they would have said they're splitting off the streaming (and it was the $2 extra not DVDs) because licensing costs were going to skyrocket and they have new and exciting things in the works there would be a lot less outrage. I think the lack of the bundle deal is for the same reason above, they want people to pick one or the other for when they are negotiating licensing deals.
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« Reply #73 on: July 14, 2011, 03:20:13 PM »

Quote from: pr0ner on July 13, 2011, 02:58:31 PM


Besides, I can back up my point.

Quote
Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didnít anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering. Reflecting our confidence that DVDs by mail is a long-term business for us, we are also establishing a separate and distinct management team solely focused on DVDs by mail, led by Andy Rendich, our Chief Service and Operations Officer and an 11 year veteran of Netflix.

Can you?

Umm actually that quote helps make my point. Netflix overestimated how fast DVD sales were slowing and needed to respond to it. The fact still is Netflix wants to phase out physical media and be a streaming only service.
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« Reply #74 on: July 14, 2011, 03:28:45 PM »

Quote from: Jumangi on July 14, 2011, 03:20:13 PM

Quote from: pr0ner on July 13, 2011, 02:58:31 PM


Besides, I can back up my point.

Quote
Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didnít anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering. Reflecting our confidence that DVDs by mail is a long-term business for us, we are also establishing a separate and distinct management team solely focused on DVDs by mail, led by Andy Rendich, our Chief Service and Operations Officer and an 11 year veteran of Netflix.

Can you?

Umm actually that quote helps make my point. Netflix overestimated how fast DVD sales were slowing and needed to respond to it. The fact still is Netflix wants to phase out physical media and be a streaming only service.

I'm not even in this argument and I can tell you that the quote does not in any way help make your point.
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« Reply #75 on: July 14, 2011, 03:44:46 PM »

I also don't want to fan the flames, but that doesn't really support you.   icon_confused

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« Reply #76 on: July 14, 2011, 04:28:22 PM »

Quote from: Bullwinkle on July 14, 2011, 03:28:45 PM

Quote from: Jumangi on July 14, 2011, 03:20:13 PM

Quote from: pr0ner on July 13, 2011, 02:58:31 PM


Besides, I can back up my point.

Quote
Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didnít anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering. Reflecting our confidence that DVDs by mail is a long-term business for us, we are also establishing a separate and distinct management team solely focused on DVDs by mail, led by Andy Rendich, our Chief Service and Operations Officer and an 11 year veteran of Netflix.

Can you?

Umm actually that quote helps make my point. Netflix overestimated how fast DVD sales were slowing and needed to respond to it. The fact still is Netflix wants to phase out physical media and be a streaming only service.

I'm not even in this argument and I can tell you that the quote does not in any way help make your point.

Yeah, I'm with Bullwinkle here.

If netflix got rid of discs, they would die fast. Americans are impatient and want to see the big ticket movies now, not in 1-6 months when it hits streaming, if ever. If you're right though, Blockbuster is in for a comeback as netflix commits suicide.
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« Reply #77 on: July 14, 2011, 05:35:39 PM »

Quote from: Bullwinkle on July 14, 2011, 03:28:45 PM

I'm not even in this argument and I can tell you that the quote does not in any way help make your point.

Actually, it does if you know of the past quotes from Netflix themselves.  The original point was that Netflix wanted to be a streaming company and not a DVD delivery company.  It probably would have been easier to just post the direct quote from Netflix's CEO that backs that up:

Quote
Netflix now considers itself a ďstreaming company which also offers DVDs by mail,Ē according to CEO Reed Hastings in the management commentary that accompanies its third-quarter earnings release.

Quote
We are very proud to announce that by every measure we are now a streaming company, which also offers DVD-by-mail. In Q4, weíll spend more on streaming content than DVD content, and weíll deliver many more hours of entertainment via streaming than on DVD. More impressively, a majority of our subs will watch more content streamed from Netflix than delivered by us on DVD. DVD-by-mail shipments are still growing, but streaming for us is much larger and growing much faster.

http://gigaom.com/video/netflix-ceo-we-are-now-a-streaming-company/

But let's look at that paragraph again, and play the bolding game.

Quote
Last November when we launched our $7.99 unlimited streaming plan, DVDs by mail was treated as a $2 add on to our unlimited streaming plan. At the time, we didnít anticipate offering DVD only plans. Since then we have realized that there is still a very large continuing demand for DVDs both from our existing members as well as non-members. Given the long life we think DVDs by mail will have, treating DVDs as a $2 add on to our unlimited streaming plan neither makes great financial sense nor satisfies people who just want DVDs. Creating an unlimited DVDs by mail plan (no streaming) at our lowest price ever, $7.99, does make sense and will ensure a long life for our DVDs by mail offering. Reflecting our confidence that DVDs by mail is a long-term business for us, we are also establishing a separate and distinct management team solely focused on DVDs by mail, led by Andy Rendich, our Chief Service and Operations Officer and an 11 year veteran of Netflix.

In other words, is this a major modification of their corporate direction given from their own CEO less than a year ago.  They screwed up and either misjudged the market or are finding out that they're not likely going to be allowed to stream enough new content to move away from physical DVDs anytime soon.
« Last Edit: July 14, 2011, 05:37:34 PM by Blackadar » Logged

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« Reply #78 on: July 21, 2011, 03:54:19 PM »

Well Blockbuster just upped the ante for mail service discs.  They have a 2 disc plan for $14.99 a month, that includes blurays and game rentals at no additional charge.  So you can have a game out as long as you need and still get movies coming in.  Since I have 2 Blockbuster stores within 3 miles of my house and you can also do in store exchanges,  this looks like my new service.  Hell, my 1 disc service from netflix is already $12 ( including the bs bluray upcharge ) So its $3 more to add the extra disc and get gaming access.  I really dont watch the streaming on NF that much and I also have amazon prime already so it looks like Im done with Netflix.
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« Reply #79 on: July 21, 2011, 04:02:50 PM »

Quote from: rshetts2 on July 21, 2011, 03:54:19 PM

Well Blockbuster just upped the ante for mail service discs.  They have a 2 disc plan for $14.99 a month, that includes blurays and game rentals at no additional charge.  So you can have a game out as long as you need and still get movies coming in.  Since I have 2 Blockbuster stores within 3 miles of my house and you can also do in store exchanges,  this looks like my new service.  Hell, my 1 disc service from netflix is already $12 ( including the bs bluray upcharge ) So its $3 more to add the extra disc and get gaming access.  I really dont watch the streaming on NF that much and I also have amazon prime already so it looks like Im done with Netflix.

damn, gonna have to check them out.  they closed the local store though, so I won't bother with the in-store exchanges.  I do see new games don't seem to be readily available until a few months later for monthly subscribers unless you want to pay an extra fee though.
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