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Netflix Hopes You Don't Notice Fake Audience, Higher Prices
Americans too 'self-absorbed' to notice they'll be paying more

Yesterday Netflix launched their streaming video service in Canada, though the launch was soured by the realization that the company hired actors to wander around in the crowd pretending to be enthusiastic. In much the same way Netflix hoped nobody would notice that they were using a hired audience, Hollywood Reporter notes how Netflix hopes their U.S. customers won't notice that Canadians are not only getting the option of streaming only service, they're getting the service at lower cost.

quote:
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Hastings: We want to provide an incredible value for Canadians, and it's the lowest price we have anywhere in the world for unlimited screenings. And anyone can try it for free for a month. It's pretty addictive.

THR: Are you concerned that American Netflix subscribers will look north and ask for the same discount Canadians get at $7.99?

Hastings: How much has it been your experience that Americans follow what happens in the world? It's something we'll monitor, but Americans are somewhat self-absorbed.
For the record we (and a large number of our readers, judging from how many people submitted this story) noticed. Meanwhile, Canadian ISPs are busily hoping the press and public doesn't notice how the industry's ridiculous low caps and high per gigabyte overages make Netflix streaming HD video (instead of watching traditional TV) an expensive and punitive affair.
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GeekJedi
RF is Good For You
Premium Member
join:2001-06-21
Mukwonago, WI

GeekJedi

Premium Member

He's wrong

We're not "somewhat" self-absorbed, we're completely self-absorbed.

footballdude
Premium Member
join:2002-08-13
Imperial, MO

footballdude

Premium Member

Re: He's wrong

Doesn't matter.

In this connected world, somebody was bound to notice sooner or later and put it on their facebook page or on their blog. Twenty seconds later it will be known around the world.

You'd think an internet content provider like Netflix would figure that out at some point.

TuxRaiderPen
A Warm Embrace
join:2009-06-02
Outer Rim

TuxRaiderPen

Member

Cheaper?

Despite possibly costing less, it will end up costing much more once they (the unwitting consumer), hit the caps and enjoy those beautiful overage charges.

pfak
Premium Member
join:2002-12-29
Vancouver, BC

pfak

Premium Member

Re: Cheaper?

What overage charges? I'm on Shaw and I don't see any of these so called overage charges you speak of.

Oh right, Canada is a large country with many different ISP's! Sorry for not falling for your generalization.

TuxRaiderPen
A Warm Embrace
join:2009-06-02
Outer Rim

1 edit

TuxRaiderPen

Member

Re: Cheaper?

Try reading the AUP, specifically:

"Shaw reserves the right to set specific limits for Bandwidth Usage and charge for excessive Bandwidth Usage for residential Services at any time"

Then please explain what I'm generalizing.

»www.shaw.ca/en-ca/AboutS ··· t.htm#q8

pfak
Premium Member
join:2002-12-29
Vancouver, BC

pfak

Premium Member

But do they? No, they do not.
arthur5005
join:2006-03-06
Canada

arthur5005

Member

Re: Cheaper?

I have to give it to Shaw & Telus, they are the only two incumbent ISPs in Canada that I know of, who don't impose 'punitive' internet overages of throttling.

I was out east for 5 years, and that region is a disaster. Videotron will immediately charge you $50 for going over (I call it the 'Online-HD-Tax'), I've been told Rogger$ has a similar structure in-place. And lastly, there's Bell...

You could compile all of Bell's actions over the last decade into a colossal book of a horror stories, sure to put kids around a campfire into a near catatonic state. Disclosing to them that these were in-fact true stories would risk irreparable damage to their psyche and strip them of any of their remaining innocence.

This is why we don't have Bell services in our household. We think of the children.

TuxRaiderPen
A Warm Embrace
join:2009-06-02
Outer Rim

TuxRaiderPen to pfak

Member

to pfak
Sounds like your generalizing...
Crookshanks
join:2008-02-04
Binghamton, NY

Crookshanks to TuxRaiderPen

Member

to TuxRaiderPen
How is that the fault of Netflix?

If anything, Netflix offering their streaming service will serve as a great example of how absurd it is to have low caps in this day and age.

TuxRaiderPen
A Warm Embrace
join:2009-06-02
Outer Rim

TuxRaiderPen

Member

Re: Cheaper?

I'm not saying it is Netflix's fault... only that I feel sorry that the average Canadian sub will have to foot the bill...

Sabre
Di relung hatiku bernyanyi bidadari
join:2005-05-17

1 recommendation

Sabre

Member

*facepalm*

Sure, Americans are self-absorbed. I say that (and many less charitable things) all the time.

But I'm not a CEO.

You don't say that to customers (directly or indirectly). The fact is he pretty much said to Americans "we're offering this somewhere else and you're too stupid to notice or care." It may be true, but you don't say it out loud.

I'll say about Reed Hastings what I've said about Bobby Kotick - they're in desperate need of a PR department to keep them from shoving feet into their mouths. Why was he allowed to get away with saying this?
tired_runner
Premium Member
join:2000-08-25
CT

tired_runner

Premium Member

Re: *facepalm*

Netflix is popular enough for him not to care, especially at the price point of his most popular service tier.

Who are consumers kidding? Not everyone is willing to drive over to a Redbox for their DVD entertainment needs.
hottboiinnc4
ME
join:2003-10-15
Cleveland, OH

1 edit

hottboiinnc4

Member

Re: *facepalm*

5 minute walk around trip and soon RedBox will be streaming as well! Good bye NF!

Also is RB i get 8cent movies.

Caddyroger
Premium Member
join:2001-06-11
To the west

Caddyroger

Premium Member

Re: *facepalm*

I agree with you Redbox is a joke
Expand your moderator at work
talz13
join:2006-03-15
Avon, OH

talz13 to hottboiinnc4

Member

to hottboiinnc4

Re: *facepalm*

said by hottboiinnc4:

Also is RB i get 8cent movies.
How does that work? I'm always paying $1.00 + tax!

Exodus
Your Daddy
Premium Member
join:2001-11-26
Earth

Exodus

Premium Member

I'm Cancelling!

THIS IS AN OUTRAGE.

Just kidding. I love Netflix. Americans are idiots. You're only offended because he's right.
tired_runner
Premium Member
join:2000-08-25
CT

tired_runner

Premium Member

Re: I'm Cancelling!

I actually laughed when I read Karl's entire synapsis of this news, that CEO is spot on.

However, I hope he's not relying on that perception to jack up rates in the US. I will drop them like a habit if need be.

DC Denton
Premium Member
join:2002-06-25
Huntsville, AL

DC Denton to Exodus

Premium Member

to Exodus
Now now archy, you are an american also afiak actually....

But yes, Netflix is awesome. Yep few dollars more then our neighbors, but im still enjoying this 50mbit/35mbit piple line

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

finally

some honesty from a corporate guy.

this is new.
mr weather
Premium Member
join:2002-02-27
Mississauga, ON

1 recommendation

mr weather

Premium Member

Re: finally

We're paying less but we're also getting less. The amount of content we have is a fraction of what the US service offers.

sabersaw
Premium Member
join:2001-08-21
Dayton, OH

sabersaw

Premium Member

Re: finally

said by mr weather:

We're paying less but we're also getting less. The amount of content we have is a fraction of what the US service offers.
do CRTC content rules apply to streaming media?

travisc
join:2001-11-09
Uxbridge, ON

travisc

Member

Re: finally

No, Netflix hasn't purchased enough Canadian rights yet, so their selection looks like ass.

thender
Screen tycoon
Premium Member
join:2009-01-01
Brooklyn, NY

thender to ArrayList

Premium Member

to ArrayList
Everyone hates the canned responses from corporate representatives, but when someone actually says what they think they get crucified for it.

So enjoy your canned responses.

ArrayList
DevOps
Premium Member
join:2005-03-19
Mullica Hill, NJ

ArrayList

Premium Member

Re: finally

wow i just got why they call them canned.

like canned food. they are cheap and useless

Thaler
Premium Member
join:2004-02-02
Los Angeles, CA

Thaler

Premium Member

He's Kinda Right

I do think Americans will pick up on this as it circulates (some) of the media...but we're not gonna do anything about it. We love us some Netflix...so...what're we going to do? Stage a sit-in until we get a matching price?

They're charging what they feel the market will bear here in the states...and I'm fine with that.
Storage_Guy
join:2006-04-30
Benton Harbor, MI

Storage_Guy

Member

He has a valid point...

how many Americans do you know read publications from other countries or follow what happens around the world? Watching CNN or Fox news does not count.

jmn1207
Premium Member
join:2000-07-19
Sterling, VA

jmn1207

Premium Member

Re: He has a valid point...

I are not a idiot!

That's it, I'm burning my Strange Brew VHS tape in protest, ya hosers!

Subaru
1-3-2-4
Premium Member
join:2001-05-31
Greenwich, CT

1 edit

Subaru to Storage_Guy

Premium Member

to Storage_Guy
said by Storage_Guy:

how many Americans do you know read publications from other countries or follow what happens around the world? Watching CNN or Fox news does not count.
I do but I know hardly anyone else that does.. I do like to know what's going on in world events AWAY from home.

I go to work and ask did you hear about such and such and they are always like hmmm I've never heard anything about it.
Storage_Guy
join:2006-04-30
Benton Harbor, MI

Storage_Guy

Member

Re: He has a valid point...

I know what you mean. There is a lady in my office that did not know what the BBC was until about a month ago.

Subaru
1-3-2-4
Premium Member
join:2001-05-31
Greenwich, CT

Subaru

Premium Member

Re: He has a valid point...

wow.. that's sad... the sad thing is they only know when it's so big it has to hit all the news outlets here.

too many damn people here wrapped up in the lives of Hollywood stars.. (for what reason I don't know)
scross
join:2002-09-13
USA

scross to Subaru

Member

to Subaru
said by Subaru:

I do but I know hardly anyone else that does.. I do like to know what's going on in world events AWAY from home.
I do, too, because the internet makes this trivially easy to do. Plus it's amazing what objective truths about America get published overseas, while our own domestic news sources are either all quoting the same Wall Street party line, or are obsessed with whatever Lady Gaga or whoever is doing today. And I rarely watch TV, so whenever I hear someone get all worked up about something stupid they saw on Faux News, I usually just say "WTF are you talking about?" Which I guess to them makes me look like the ignorant one.

You do have to watch for self-serving spin, though, where an overseas outlet is spinning something (usually anti-American) to their own domestic audience. These are usually easy to spot, though. I won't name names, but most of you wouldn't be too surprised at who these publications are.

Subaru
1-3-2-4
Premium Member
join:2001-05-31
Greenwich, CT

Subaru

Premium Member

Re: He has a valid point...

hey you don't happen to have a link to this news site that has online English version of the newspapers online do you?

I lost the link when a hard drive went bad but it had newspapers for lik 40 different countries.
scross
join:2002-09-13
USA

scross

Member

Re: He has a valid point...

I had no particular site in mind, but Google search immediately brought these up:

»www.world-newspapers.com/
»www.thebigproject.co.uk/news/
»www.inkdrop.net/dave/news.html

I've seen some remarkably prescient and accurate things about America printed in such publications as, for example, the Financial Times of London, and Der Spiegel out of Germany. Also, believe it or not, from Rolling Stone magazine in the U.S., which has no Wall Street connections - all of this while the U.S. press was spewing just massive amounts of BS.

AB57
Premium Member
join:2006-04-04
equatorial

AB57 to Storage_Guy

Premium Member

to Storage_Guy
said by Storage_Guy:

how many Americans do you know read publications from other countries or follow what happens around the world?
There are other countries?
SilentMan
join:2002-07-15
New York, NY

SilentMan to Storage_Guy

Member

to Storage_Guy
said by Storage_Guy:

how many Americans do you know read publications from other countries or follow what happens around the world? Watching CNN or Fox news does not count.
Haha! It's not only NOT following what happens around the world; Most can't find, say, New Jersey on a map!

There is a business saying that it is almost like an axiom: "No One has ever gone broke underestimating the intelligence of the American people!"
scross
join:2002-09-13
USA

1 edit

scross

Member

Re: He has a valid point...

said by SilentMan:

Haha! It's not only NOT following what happens around the world; Most can't find, say, New Jersey on a map!

There is a business saying that it is almost like an axiom: "No One has ever gone broke underestimating the intelligence of the American people!"
A true story, supposedly:

Order taker: "And to what state will we be shipping this order, sir?"
Sir: "To New Mexico."
Order taker: "I'm sorry, sir, but we can only ship to states within the U.S. border." Click!

(Sigh)

For me personally, reading foreign publications is less about finding out what's going on in the rest of the world (although it can serve as an excellent "early warning system" for future events and opportunities at home), than it is about finding an objective, outsider's take on events in America. These aren't always un-biased, of course, but they can be excellent at times.

As far as the "underestimating the intelligence" comment goes, I would argue that this is what helped make little Billy Gates one of the world's richest men (if in fact this is not a paid myth, as so many things about him are). Some would argue that Steve Jobs has now learned how to milk this philosophy quite well, too.
JackTruong
join:2005-03-29
Waterloo, ON

JackTruong

Member

Not equal.

You're comparing apples to oranges if you think that the offering in Canada is anywhere close to what Netflix offers for the USA. For the roughly $1 difference, Netflix USA gets so much more content. If anything, Canadians are getting getting ripped off for $7.99.
thor793
join:2005-09-10
Schaumburg, IL

1 edit

thor793

Member

Re: Not equal.

bah nevermind...stupid exchange rates.

BillRoland
Premium Member
join:2001-01-21
Ocala, FL

BillRoland

Premium Member

He's wrong

Americans may be somewhat self absorbed (its not a bad thing) when it comes to world events, but they love a bargain. That's why they'll lament the demise of the "mom and pop" stores, while gleefully shopping at Wal-Mart. When it comes to deals, you can bet they'll notice.

Mr Anon
@k12.il.us

Mr Anon

Anon

What?

So I didn't read the article but from the post here are you really saying they are trying to make it an issue that I pay $1 USD more and get unlimited 1 disc at a time? Disc rentals for $1... okay.

•••

YogiYahooeys
join:2004-08-17
Evansville, IN

YogiYahooeys

Member

Really?

I can't actually believe that a CEO of a major company would be so stupid as to openly insult his customer base. I personally have no problem with the price disparity considering that I actually receive something (physical disc delivery) for the extra that I am paying, but I do take issue with being called "self-absorbed." Even worse, if I were an investor in the company, I would have serious concerns about the future of a company whose CEO is so clearly unprofessional and clueless. It's not about whether Americans are self-absorbed; it's about actually calling them self-absorbed. The truth is irrelevant. If this story has any legs, it's the type of thing that could harm perception and affect the company's stock...

Duramax08
To The Moon
Premium Member
join:2008-08-03
San Antonio, TX

Duramax08

Premium Member

So that means

Everyone should call in and ask for the canada price
thor793
join:2005-09-10
Schaumburg, IL

1 edit

thor793

Member

Re: So that means

ah nevermind...forgot about the exchange rate...

so what...europeans complain all the time about getting ripped off with US games getting priced the same across the pond.

buddahbless
join:2005-03-21
Premium

buddahbless

Member

The good, the bad & the ugly !

for whats its worth IM AMERICAN BUT I'VE LIVED ON BOTH SIDES OF THE BORDER. Hears the break down for both sides of the border...

Canada
Got netfix= THE GOOD
Got caps= THE BAD
many canucks wont even think/remember of the cap until the rogers bills comes and theirs and extra few $100 on the bill because of there eagerness to watch movies at home for $8 and not pay for Rogers on demand movies.= THE UGLY

USA
we can get movies by snail mail or online for just $2 more= THE GOOD.
No stand alone option for streaming content only which im sure 50% of netfilx users would switch to if possible=THE BAD.
Even if Netfilx gets enough complaints and launches a package for streaming only service I can see it being the same price as what Canada is offered @ $7.99 USD. = THE REAL UGLY

FOR anyone that missed the last part at today's exchange rate 7.99 USD is equal to $8.27 CAD. so we will still be paying more for the streaming only service....

The real Gotcha

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

88615298 (banned)

Member

Re: The good, the bad & the ugly !

said by buddahbless:

for whats its worth IM AMERICAN BUT I'VE LIVED ON BOTH SIDES OF THE BORDER. Hears the break down for both sides of the border...

Canada
Got netfix= THE GOOD
Got caps= THE BAD
many canucks wont even think/remember of the cap until the rogers bills comes and theirs and extra few $100 on the bill because of there eagerness to watch movies at home for $8 and not pay for Rogers on demand movies.= THE UGLY
But in the end it's actually a good thing. People don't really complain about cap because many don't know how much a GB is. Once they realize doing BASIC things on the internet will cost HUNDREDS $$$ extra they will DEMAND higher caps and they WILL get them.
amungus
Premium Member
join:2004-11-26
America

amungus

Premium Member

kill silverlight

Wow, that is pretty wild news...

I do not mind the ~$10 I pay (+$1 for blu-ray, +tax), but the actors being hired? Lameness.

Please, just let WMV streams happen on PCs again. I do not like silverlight. It plays like crap in Media Center. It plays like crap on older machines. It plays like crap on some newer machines. It fails in so many ways, and people don't care for it - especially those who were fortunate enough to see PRE-silverlight streams.

Heck, anyone with an XBOX can compare even SD streams to those on a PC. The differences are obvious, and I notice, as do the hundreds of users who've posted to their blog(s).

Go ahead and charge Canadians less, and prop yourselves up with fake happy people, but for the love of movies, please ditch Silverlight.

Go with a format other than WMV for all I care, as long as it isn't
-flash
-silverlight

Open formats could support "protection" if that's what they're worried about. Encrypt the files, done. Lower bitrates to save bandwidth? Also easily done, and WAAAAY BETTER with open formats. VP8, for example, would probably rock... and would work for other operating systems. ...As if that was the primary reason for moving away from WMV anyway...

Netflix loses on Silverlight. I would have canceled over this were it not for the quality streams on my XBOX.

Not renewing my 'live' subscription either - I'll be going with PS3 streaming, thanks much, even if it means updating to the "No more Linux" firmware BS... If that quality sucks, goodbye Netflix unless they change their tune on choice of codec for streams.

Oh, and good luck with those silly caps up there. Totally lame that providers are so stingy as to render services like this useless. ...Here's your internet! ...Except that you might as well not be able to enjoy much of it

Hopefully ISPs stop this madness of insanely small caps someday. I feel sorry for the folks up north with such small caps, and now this chance to stream...

••••••

skuv
@rr.com

skuv

Anon

So...

The Netflix CEO is so self-absorbed himself that he forgot that for $8.99 that US users get a 1 disc at a time unilimited rental and more streaming content.

The streaming content available for Canada really sucks compared to the US selection.

So why did he even bring this up in the first place?
macaholic
Premium Member
join:2003-08-31
Jackson Heights, NY

macaholic

Premium Member

regarding

On your last statement... I'm sure if someone finds a way of paying these Canadian telcos a fee per customer.. they can prioritize and lift the cap on netflix traffic. like they do on their own internal stuff.

I'm sure somehow the cost it will be passed down to the customer ...

buddahbless
join:2005-03-21
Premium

buddahbless

Member

Re: regarding

that would be the logical thing to do....TOO BAD THIS IS ROGERS AND BELL WE SPEAK OF.

These 2 companies will find any way to stifle competition.
the reply I can say Id expect to get from them is.." ya we have a way for u to watch netflix as much as you want Pay our already ridiculous overage fees, sorry no other option will be available."

I had/tried Rogers and Bell ISP while I was living in Toronto Canada, got fed up and went to Acanac!

cpsycho
join:2008-06-03
Treadeu Land

cpsycho

Member

WTF??????

They are using silverlight? WTF... Well count me out.

pkarlos_76
join:2004-08-24
Edmonton, AB

pkarlos_76

Member

Re: WTF??????

said by cpsycho:

They are using silverlight? WTF... Well count me out.
oh plzzzzzzzzzz like you care....

cpsycho
join:2008-06-03
Treadeu Land

cpsycho

Member

Re: WTF??????

yes... yes I do care.

Hilroyy
join:2004-06-22

Hilroyy

Member

Nothing but crap

7.99 to watch 10 year old movies and tv shows, no thanks. Nothing but crap available, I cant imagine them doing any sort of business up here with the content they are offering.

obeythelaw
Premium Member
join:2003-04-16
Warren, NJ

obeythelaw

Premium Member

Re: Nothing but crap

i agree. netflix is an awesome service and i love streaming but for my 8.99 i would need to be able to get the new releases too. it's bad enough that my directv gets some new releases before netflix has them available. their streaming service is great but to watch old "classics" and movies from a few years ago would not do it for me. if they offered up their new releases for streaming, that's a different story.
mkam
Premium Member
join:2010-02-22
Beeton, ON

mkam to Hilroyy

Premium Member

to Hilroyy
Signed up for the free account - probably won't last the weekend. I like the classics. Started checking on some I haven't seen in a while ie In the Heat of the Night (1967). Not available. Typed in ten movies - not a single one available. They won't last long up here - my local mom and pop video store has a better selection.

Silvanos
It's a new Silvanos experience
Premium Member
join:2002-10-07
Tonawanda, NY

Silvanos

Premium Member

What is this...

Canada he's speaking of? Is it near Alabama?

DrZEUS
join:2004-01-13
Mississauga, ON

DrZEUS

Member

Re: What is this...

said by Silvanos:

Canada he's speaking of? Is it near Alabama?
nope its just north of your armpit!
aboyer
Premium Member
join:2010-09-05
Cleveland, OH

aboyer

Premium Member

a dollar more?? wow americans are getting ripped off...

... introductory deals are nothing new. and $1 a month is nothing to brag about. How much tax is added to that $7.99 ? curious
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