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Comments on news posted 2011-09-19 08:55:54: Last week Netflix acknowledged that the company's decision to split apart their DVD rental and streaming tiers -- and impose a massive rate hike in the process -- resulted in them losing a million more subscribers than previously predicted. ..

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88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to thedragonmas

Member

to thedragonmas

Re: Netflix betting on future Hollywood may not let them have

said by thedragonmas:

yeah, no discount, if i bundle video, internet, phone, thru my cable company, guess what? i get a discount. so instead of charging me $16 for dvd and streaming, how about, oh i dont know, $10 for 1 dvd and streaming, now thats a nice discount that would get me to keep both... oh, but wait.........

Excuse me but as I said show me where you renting 6, 8 or 10 DVDs a month for $2 is profitable for Netflix? Which part of this is too hard for you to get?

you pay $50 or more to your cable company for crap on TV which is mostly commericials. I bet if Netflix could get those 24 million to pay $30 a month you'd have a shitload of newer content on Netflix but people woud bitch about the price.

crazediamond
Maybe you shouldn't be so proud?
Premium Member
join:2002-01-19
Brooklyn, NY

crazediamond to steven s

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to steven s

Re: Groan......gotta keep track of two accounts, now?

my streaming went from 8 to 8
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to NPGMBR

Member

to NPGMBR

Re: Netflix betting on future Hollywood may not let them have

said by NPGMBR:

You have to keep in mind that this move means that Netflix (Qwikster) will be purchasing fewer DVDs. Consumers have not gotten used to the idea of not buying them so the Studios will lose out.

Yep Hollywood doesn't get that if Netflix and RedBox went out of business they'd be losing the 2 largest buyers of DVDs. If they think DVD sales are bad now......
jfmezei
Premium Member
join:2007-01-03
Pointe-Claire, QC

jfmezei

Premium Member

Acceess to rights is the key

Remember that Netflix just lost access to a big library of content from Starz (sp?).

By splitting the 2, it allows Netflix to wage a war on one side to get rights without affecting the other side's access to content.

My new sony vcr allows me to rent sony pictures at $5.99 a shot. Great integration with internet connected vcrs (ok, it is a blue ray player bit I still call it a vcr

But Sony would rather I do business with them directly at a higher price than do business with Netflix.

Netflix did manage to build its brand before hollywood woke up and saw it as a threath. Same with YouTube. I am betting they are planning to survive long enough until Hollywood begins to accept and support this.

What is likely to happen though is that while Hollywood will reluctantly agree to a reduction of their profit margins, they will probably force Netflix to raise prices.

Hollywood doesn't want to kill off DVD/BD sales even though they will go the way of teh CD. People will only buy blue rays for movies that are worth keeping (big stuff like star wars, avatar etc).

yongar
join:2000-12-08
Virginia Beach, VA

yongar to crazediamond

Member

to crazediamond

Re: Groan......gotta keep track of two accounts, now?

me too.
I may get a new Qwikster account for PS3 games.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to steven s

Member

to steven s

Re: Netflix betting on future Hollywood may not let them have

said by steven s:

said by 88615298:

mythical 60% price hike.

What?

Well all the haters said "All netflix cusomers got a 60% price hike"

let's examine that.

41% have streaming only. No price hike
9% have DVD only no stream. Got a price REDUCTION.

That's 50% right there.

Of the 50% that had both streaming and DVD how many had the 1 DVD at a time plan? Maybe half at most. That is the ONLY plan where the price was raised 60%. HUGE difference between ALL and 25%.

mod_wastrel
anonome
join:2008-03-28

mod_wastrel to steven s

Member

to steven s

Re: Groan......gotta keep track of two accounts, now?

DVD accounts went from getting streaming free (for a long time) to having to pay for it (like everyone else who just wanted streaming), plus getting a $2 fee reduction for DVDs.
ArizonaSteve
join:2004-01-31
Apache Junction, AZ

ArizonaSteve

Member

It's a scam to make us subscribe twice!

Hey Reed,
How about making more movies available for streaming?
Every movie I look for says it's only available on DVD!!!!
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to spewak

Member

to spewak

Re: Netflix not so smart?

said by spewak:

You keep rehashing the Netflix CEO's rantings! Look where it has put them. They split the company. Their stock nosedived. The Industry wants to kill Netflix. If you and Reed don't see that yet, it is back to Business 101 for the lot of ya!

So renting 8 DVDs a month per customer for $2 is a viable business solution. Yeah ok business guru.

Stick nosedived because investors are morons.
ksharp250
join:2010-09-24
Middletown, PA

ksharp250

Member

Im actually ok with it

I actually accept the 'apology' even though they are not calling it that in the email I got. It explains to me anyway very clearly what they intend to do and why they did. Now, had they said all of this prior to the price change announcement, how many people would be fired up by that and touting 60% price hike complaints. I suspect that had you been told why the price is going that way and that the company is splitting and for that offering video game rentals now as well with the DVD mailing business model..youd be ok with the change. I am. Not enough to re-sign for a combo disc and streaming I am pure streaming..

That said...they have a long way to go on streaming side to win me over on it being worth the $8 a month. And the second they start getting big name content back if that price starts inching up more and more...im out. But the loss of Starz was the closest thing to somewhat relevant content they had going for them.

My point is this. If Netflix is to survive as a streaming service, I need more than Japanese cartoons, tired old low rated TV series (for the most part), horrible weak-sauce B movies and documentaries no one cares about. I dont care if I have to wait 60 days etc like others, but get me relevant AAA content....still for only $8-10 a month. Or Im out. Period. Not paying $25-45 a month just to get what everyone wants and dreams for Netflix to be (which is the price the industry would love)
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to jfmezei

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to jfmezei

Re: Acceess to rights is the key

said by jfmezei:

Remember that Netflix just lost access to a big library of content from Starz (sp?).

They haven't lost anything from Starz. Starz content is still on Netflix until February. Before then Netflix will write a nice big check to Starz and everything will be kosher.
88615298

88615298 (banned) to ArizonaSteve

Member

to ArizonaSteve

Re: It's a scam to make us subscribe twice!

said by ArizonaSteve:

Hey Reed,
How about making more movies available for streaming?
Every movie I look for says it's only available on DVD!!!!

blame the studios not Netflix. This will require MUCH more money from Netflix. Money they could only get by raising prcies. Prices people are now bitching about. You can't have it both ways.

David
Premium Member
join:2002-05-30
Granite City, IL

David

Premium Member

now they should pick up

Redbox for the win, or redbox can pick them up.

The video store of the future.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

said by David:

Redbox for the win, or redbox can pick them up.

The video store of the future.

who cares. Netflix doesn't care about DVDs. Only 9% of their customers are on DVD only plans. Let them go to Redbox. Saves Netflix money they can use for streaming.

Uncle Paul
join:2003-02-04
USA

Uncle Paul to FFH5

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to FFH5

Re: Netflix betting on future Hollywood may not let them have

Until I can get the same release dates on streaming that I can on DVD, then it's going to be DVD rentals for me. I'm interested in seeing new content, not last year's movies or B movie flops.

Then there's this whole I like Bluray movies and streaming in 1080p/24 with DTS is a killa on the caps these days.

All streaming is right now is a means to fill the gaps and catch up on old TV series.
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to ksharp250

Member

to ksharp250

Re: Im actually ok with it

said by ksharp250:

My point is this. If Netflix is to survive as a streaming service, I need more than Japanese cartoons, tired old low rated TV series (for the most part), horrible weak-sauce B movies and documentaries no one cares about. I dont care if I have to wait 60 days etc like others, but get me relevant AAA content....still for only $8-10 a month. Or Im out. Period. Not paying $25-45 a month just to get what everyone wants and dreams for Netflix to be (which is the price the industry would love)

you're not getting newer movies for $8-$10 a month it isn't happening. That is fantasy talk. You want movies 60 days after DVD release and Netflix only charge $10 a month max. Well let's do math. $10 X 24 million X 12 months is $2.88 billion a year. That is not enough money to pay the studios to get movies 60 days after DVD release.

Hell Starz wanted $300 mil per year for their movies which are a year old at least AND they only wanted it to be for customers that had BOTH the streams and DVD package. Which meant streaming only customers like me would have been left out of the cold. Should Netflix have made this deal? I'm glad they didn't. As I said this is for movies that have been out a year or more. Imagine what 60 day old movies would cost.
amungus
Premium Member
join:2004-11-26
America

amungus

Premium Member

don't care

I only ever signed up for Netflix in order to get streaming. Sure, I tried blu-ray for an extra buck, but I still mostly kept discs for weeks/months at a time because I didn't care.

If they can ever get more content, it'd be nice. They've been at this for years, and still have a rather limited selection.

In comparison, Rhapsody and Spotify have a large swath of music available to stream. The comparison with Netflix and online movie selection is not worth making at this point.

There really is no sensible reason to keep perpetuating physical releases or DRM encumbered iTunes/Amazon/etc. purchases as the ONLY way to watch movies at home. I'm not counting "on demand" because that obviously has its place as well. More people would 'rent' (stream) more often, and there would be more profit in the long run. Hopefully someday, the studios, the producers, and the ISPs "get it."

For now, we're left with capped internet service that has NO reason to exist, fearful greedy studios, and a company (Netflix) that is trying to sell people something they want to pay for, but can only get a taste of.

Oh well, while they're spinning things off/restructuring, can somebody please tell them that their website is rather terrible
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned)

Member

Blame the correct people

blame the content holders not Netflix for all of this

Starz wanted $300 mil per year for their movies which are a year old at least AND they only wanted it to be for customers that had BOTH the streaming and DVD packages.

Netflix offered $250 mil and wanted everyone to have access. Now even if Starz took the $250 mil that's $220 mil per year increase over what Netflix is currently paying. Now where is Netflix going to get an extra $220 mil a year without increasing pricing somehwere? And this is just for Starz this doens't even mention their other deals that are soon to expire and newer deals Netflix wants to do.

Now Netflix can take the $250 mil they wer going to give Starz and put it to getting content from somewhere else. So fuck Starz. But NOOOOOOOOOOOOOO everyone wants to blame Netflix. Starz gets a free pass even though THEY are being greedy assholes.
ggultra2764
join:2007-09-13
Cambridge, NY

ggultra2764

Member

This seems too sudden...

Netflix just hiked up their price rates for dual DVD/ streaming service and separated both into separate packages. And just when customers were getting used to this, now they're making them separate providers? Confusion, much?

TechyDad
Premium Member
join:2001-07-13
USA

TechyDad to 88615298

Premium Member

to 88615298

Re: Netflix not so smart?

What you're ignoring is that, before the split, Netflix used their DVD service to negotiate with studios. They agreed to a 30 day DVD waiting period and, in return, got more streaming titles (and reduced DVD prices).

Now what will they use to negotiate with the studios who see any streaming as a threat to DVD sales?
TechyDad

TechyDad to wings10

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to wings10

Re: What about others

They can only do so much against DVD rentals. Like it or not, companies don't need to get approval to rent DVDs. However, RedBox and Netflix made deals to get reduced DVD pricing (and more streaming selection in Netflix's case). If the studios said "You need to wait 2 years before you can rent a DVD", they would be laughed at.

With Netflix Streaming, however, studios get to approve just what is and isn't streamed. Netflix just can't toss all movies/TV shows on streaming. They need to ink deals to allow certain content to go online. If a deal falls apart (see: Starz), then previously streamed content would disappear. If the studios decide to only give Netflix garbage content and/or raise their price demands, then Netflix is going to have to wind up charging users a ton of money for poor content.

Before the split, Netflix had a hedge against the studios. After it, they've placed themselves right in the studios' hands. History says that, when in a position like that, the studios tend to squeeze as hard as possible.
TechyDad

TechyDad to SysOp

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to SysOp

Re: Call it what ever you want I'll still be a customer

The foulmothed pothead who owns the Twitter handle might care: »gizmodo.com/5841636
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to TechyDad

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to TechyDad

Re: Netflix not so smart?

said by TechyDad:

What you're ignoring is that, before the split, Netflix used their DVD service to negotiate with studios. They agreed to a 30 day DVD waiting period and, in return, got more streaming titles (and reduced DVD prices).

Now what will they use to negotiate with the studios who see any streaming as a threat to DVD sales?

Streaming isn't the threat for newer movies. Not yet anyways. It's Netflix and Redbox allwoing DVD rentals for $1 or less. Back when video stores existed and charged $5 for a DVD some people said "heck for another $10 I can own the thing". Also the studios made more money from videos stores that charged $5 than when Netflix/Redbox charges $1.
88615298

88615298 (banned) to spewak

Member

to spewak
said by spewak:

said by jims2321:

The biggest reason I think Netflix is going to suffer is that their streaming side lacks current content. This alone will hurt their bottom line. Then the inability to stream if the user is a dvd subscriber. This really is going to impact their business.

To add:
I don't think that their streaming content will get better anytime soon. People will realize that $8 is a waste for the same old rehashed content.

Netflix was ready to give Starz $250 mil a year for a new deal. That $250 mil will buy a lot of content from someone else. And not all of Netflix content is old. Heck I just watched the Expendables and The Fighter on Netflix streaming and no it's wasn't Starz Play either. It was regular Netflix and in HD unlike Starz movies.

thedragonmas
Premium Member
join:2007-12-28
Albany, GA
Netgear R6300 v2
ARRIS SB6180

thedragonmas to 88615298

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to 88615298

Re: Netflix betting on future Hollywood may not let them have

said by 88615298:

said by thedragonmas:

yeah, no discount, if i bundle video, internet, phone, thru my cable company, guess what? i get a discount. so instead of charging me $16 for dvd and streaming, how about, oh i dont know, $10 for 1 dvd and streaming, now thats a nice discount that would get me to keep both... oh, but wait.........

Excuse me but as I said show me where you renting 6, 8 or 10 DVDs a month for $2 is profitable for Netflix? Which part of this is too hard for you to get?

you pay $50 or more to your cable company for crap on TV which is mostly commericials. I bet if Netflix could get those 24 million to pay $30 a month you'd have a shitload of newer content on Netflix but people woud bitch about the price.

based on all of your posts netflix can do no wrong, even when pointed out your wrong on your facts. your welcome to that opinion. im just pointing out a fact as to WHY people "Went ape" over the so called "bundle" and i dont care if it was just $6, its still a 60% jump and frankly you can justify it all you want, it was uncalled for, and netflix treated their customers like crap over it, maybe, MAYBE if they didnt take the attitude they did no where near the same amount of people would have jumped. but they did, and no amount of "where sorry but oh wait no where not oh and heres what where doing to screw up now" is going to change it...

oh and as to your direct attack, not hard to get at all, what part of a 60% price hike, and no discount for bundling isnt going to get those customers back and no amount of amount of BS arguments by shills going to change my mind to that fact. do you not get?
88615298 (banned)
join:2004-07-28
West Tenness

88615298 (banned) to jfmezei

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to jfmezei

Re: Acceess to rights is the key

Hollywood tried to kill off the VCR. Which is why I find this all ironic. Hollywood thinks Netflix is killing off their home video business, but if Hollywood had won and killed off the VCR their home video business wouldn't have ever existed anyways.

Hollywood always thinks some new technology is going to kill their business. First TV then cable TV, then the VCR and EVERYTIME it has done the exact opposite. You'd think after 65 years they would have learned by now.

Unlike back then however if Hollywood think holding onto their content will make people buy DVD they are mistaken. Give people less options and they'll just use torrents and such. Apparently Hollywood wants to turn a whole generation in pirates instead of paying customers. Something the music industry learned far too late and still hasn't recovered from. Hey Hollywood SOMETHING > NOTHING. Simple math.
PastTense
join:2011-07-06
united state

PastTense to ggultra2764

Member

to ggultra2764

Re: This seems too sudden...

Why didn't they announce these two changes (the rate change and the name change) at the same time? It would have been more understandable.
ksharp250
join:2010-09-24
Middletown, PA

ksharp250 to 88615298

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to 88615298

Re: Blame the correct people

said by 88615298:

blame the content holders not Netflix for all of this

Now Netflix can take the $250 mil they wer going to give Starz and put it to getting content from somewhere else. So fuck Starz. But NOOOOOOOOOOOOOO everyone wants to blame Netflix. Starz gets a free pass even though THEY are being greedy assholes.

Apologies if my previous post didnt make that clear, but yes, I agree. This is where my anger has been for years. Netflix was something great that has to get ruined and will probably die because of them.

dcurrey
Premium Member
join:2004-06-29
Mason, OH

dcurrey to PastTense

Premium Member

to PastTense

Re: This seems too sudden...

They got a larger backlash than expected. Stock is taking a beating. Need to spin off one of them to please stockholders. Look for Qwister to be totally separate company in future.

TechyDad
Premium Member
join:2001-07-13
USA

1 recommendation

TechyDad to 88615298

Premium Member

to 88615298

Re: Netflix not so smart?

The problem is that the studios *do* see streaming as a threat. They don't want people to be able to pay $8 a month and watch unlimited movies/TV shows. They want people to pay $15 (or more) to get the DVD.

They've consistently held back on allowing Netflix to stream recent titles. The Starz deal was a bit of a loophole that Netflix exploited. The studios hated it but couldn't do much about it. When the Starz deal ends, Netflix will need to ask the studios individually to allow them to stream recent movies. When that happens, Netflix will be at the studios' mercy as to what they get allowed to stream and at what price.
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