Netflix Subscribers Beating Hasty Retreat

[marmar]

from 24/7WallStreet:



Netflix Subscribers Beating Hasty Retreat
Posted: September 20, 2011 at 1:27 pm


It does not appear that CEO Reid Hastings’ ‘mea culpa’ for mis-communicating the recent changes in the operations of Netflix Inc. (NASDAQ: NFLX) will quell the anger caused by the announcement that the company is splitting its DVD-rental and streaming video businesses. It’s not the unnecessary split as much as it is the 60% price hike that is sending subscribers looking elsewhere for their movie fix.

Media research firm Frank N. Magid Associates Inc. surveyed both subscribers and non-subscribers to the Netflix services just prior to Netflix’s price hike announcement. A full 9% of current responders said they would cancel their subscriptions instead of switching to the new Netflix pricing plan and another 7% said they would cancel their subscriptions for reasons unrelated to the price change. Another 14% are “seriously considering” cancellation.

That’s 30% of Netflix subscribers who have cancelled, will cancel, or are likely to cancel. The chief beneficiary of the cancellations appears to be Coinstar, Inc. (NASDAQ: CSTR), operator of the ubiquitous Redbox $1/rental machines. Magid’s research indicates that 60% of Netflix subscribers already use the Redbox machines, and 30% of these subscribers plan to use Redbox more because of the Netflix price hike.

According to the Magid research, unhappy customers are primarily unhappy with the selection available from Netflix’s streaming service. When Netflix split its subscription fees to separate streaming and DVD services, the streaming-only subscription price was set at $7.99/month and the cheapest DVD-service price was set at an additional $7.99/month. Before the price hike a combined subscription cost $9.99/month. ...........(more)

The complete piece is at: http://247wallst.com/2011/09/20/netflix-subscribers-beating-hasty-retreat-nflx-cstr/#ixzz1YWa0YWTL

[trueblue2007]

1. WE ARE CANCELLING AT THE END OF THE MONTH. Will put $$ towards HBO

[ixion]

2. Yep, canceling my account as well...

they can take their price hike and shove it.

[orpupilofnature57]

4. Likewise

[SharonAnn]

Not me. I'm keeping the DVD portion to watch TV series that I can't get elsewhere.

I never did watch many newer movies, anyway.

And I don' use streaming at this time. And there will be "caps" on that anyway in the near future.

Give me the "old-time DVDs". Especially the TV series that I didn't get to watch in real-time and the older or less popular movies, including foreign movies.

[Scout]

26. same here. i only watched one program on streaming ... so i switched to

DVD only, 3 at a time, unlimited per month. works great for me! so now i'm paying less, and only for the service i actually use.

not sure what all the whining was about with the price changes :shrug:

[LondonReign2]

29. Some people here seem to like the streaming service

but only about 20% of the content I was interested in was available to stream in the first place. We switched over to DVD only, but we'll see how long Netflix--err, excuse Quixflix or whatever-- continues to offer DVD only.

Methinks Netflix CEO has made a "New Coke" sized mistake, without the ability to fix it like Coca Cola did.

[Logical]

47. I have DVD and streaming. Love them both and will keep them.

[JDPriestly]

64. We also have DVD and streaming and are quite happy.

But we don't subscribe to TV. The news coverage on TV is just abominable, and I do not want to give any financial support to it -- especially not to Fox News. When you subscribe to cable, part of your money goes to support Fox News. No thanks. Same for some of the other programming -- like Wolf Blitzer on CNN. Waste of time and money in my book.

[shanti]

58. when i get thru my streaming queue

i'll probably drop streaming as well. i get the 3 at a time too cause i never see first runs anymore.

[patrice]

3. AND the stream leaves quite a bit to be desired. nt

[trueblue2007]

22. the streaming is awful. i just called comcast and we get HBO FREE

for 3 months and then it is 10 bucks a month. we get starz as part of tv, phone and internet bundle

this is waaaaaaaaaaaaaaaaaaaay better than netflix

[patrice]

24. That bundle doesn't work for me, 'cause I'm never leaving CREDO. nt

[beac]

37. Happy CREDO customer here too (and always surprised more DUers aren't CREDOers too.)

We are also TV-free so no bundling option for us either way.

edited for typo

[patrice]

40. I have been with them ever since WALD days. Other telecoms have finally stopped calling me.

I always told them not to bother.

I love CREDO!

[beac]

50. I had Working Assets for a long time and then got rid of my landline and had

to use another company for cell service until CREDO covered my area. I think they are natonwide now, so every progressive should be a CREDO customer, IMO. :)

[shanti]

51. never heard of it before

:shrug:

[beac]

66. In a nutshell, it's a cell phone company that gives money to progressive causes

instead of the the GOP (like AT&T et al do) and they promote liberal activism too.

They will even buy you out of your old contract (up to $350!-- check them out here: http://www.credomobile.com/

FYI, here's an example of a recent "action network" campaign to keep Monsanto's new GMO-for-humans corn out of our supermarkets: http://www.credoaction.com/campaign/monsanto_sweet_corn/?rc=homepage

And here's their main action page: http://www.credoaction.com/ (Note that yo can sign their petitions w/out being member)

At the end of the year, members get to vote on the organizations that will receive CREDO donations.

It's a great company!


(here endeth the unpaid promo for CREDO-- I just really believe in what they are doing and am glad my cell phone fees aren't funding Michele Bachmann & the Tea Party. :) )

[shanti]

67. oh, ok

it used to be "working assets" didn't it? i remember having that a while ago....

[beac]

68. Yup, Working Assests became CREDO when they expanded to cell service. n/t

[montanacowboy]

5. Already cancelled my subscription

Redbox works a heck of a lot better and on $1/movie. When you have a good thing going why do you have to get piggish over it? there is just never enough money for some people...screw them

[Goblinmonger]

9. I like Redbox, but

their selection is complete horseshit next to Netflix.

[AllyCat]

16. I agree. We have no video store in our town, only Redbox and there is NOTHING there I want to see

Nothing old. Nothing retro. Nothing foreign. Just crap, straight-to-DVD stuff since anything new has already been rented.

We will continue to pay for streaming as there is quite a bit we watch and the kids watch (we have no TV), but will cancel the mail movie part.

[mainegreen]

6. I love netflix streaming.

Have no intention of cancelling.
Never signed up for the dvd. Unless it streams, I wont watch it, even if it limits my choices a bit.

[Earth_First]

7. The death of a once seemingly unstoppable entertainment service...

We will likely cancel and use Hulu+ and Redbox exclusively afterwards until something better comes along.

[RebelOne]

11. I use Hulu, but have not yet subscribed to Hulu+, but I likely will. n/t

[prairierose]

14. You do know that Murdoch owns a chunk of Hulu right? n/t

[barbtries]

20. no i did not know that.

so much for going premium, which i was seriously considering doing.

[Goblinmonger]

8. Good luck finding the same amount of selections

for the same price even with the price hike. I'm watching first season of Breaking Bad on streaming. That would be at least 4 rentals right there. Since I don't get DVDs, what I would have paid at the local video store for that rental (if they even had it) would nearly pay for 4 months of Netflix streaming.

[FSogol]

10. What is a local video store?

:shrug:

[RebelOne]

12. There aren't any. Even Blockbuster has closed in my neighborhood. n/t

[FSogol]

13. Same here. That entire business is gone. n/t

[Goblinmonger]

17. We have a chain here in Wisconsin.

Guess that doesn't exist everywhere. Now I feel special living in Wisconsin (that will go away again quickly, I'm sure)

[Safetykitten]

15. The selection of movies is getting worse on Netflix...Redbox looks much better.

[Goblinmonger]

18. Redbox

will never have the selection of Netflix. The licensing problems for both will get worked out IMHO, but having to have a physical dvd like redbox will limit what they can do streaming.

[Lydia Leftcoast]

21. The selection of movies would have to get down to 50 before it made Redbox look good

I've never used Redbox, but I've looked at what it offers from week to week: the same movies that I could have seen at the multiplex. Except that I haven't been to a multiplex movie literally for years.

[patrice]

25. That's my criticism. I could put up with streaming issues for good movies. But there's lots of

trash in Netflix stream.

[Liberal_in_LA]

32. but you have to stand outside 7/11 or Ralphs. Not with Netflix now but

liked getting the DVD in mail

[JVS]

52. Redbox sucks. Netflix is becoming just as bad.

[Codeine]

55. For current blockbuster releases, sure.

How many Korean suspense films or early Soviet classics are in the Redbox kiosk?

[barbtries]

19. i kept the streaming.

considering Hulu premium, but for now i just endure the commercials. don't watch tv, only on my computer. no cable and never again.

[Abq_Sarah]

48. Same here

I got rid of the DVD service and will keep the streaming.

[ZombieHorde]

23. Netflix is awesome. My household streams from Netflix almost everyday.

There are lots of cool kids' shows, and my wife and I have been watch TV shows on it.

[Marrah_G]

27. I'm canceling the deliveries, but keeping the streaming for now since I have no cable.

[workinclasszero]

28. Canceled Netflix

Back to redbox.

Your greed and arrogance have undone you Netflix.

Too bad, so sad. :nopity:

[Ruby the Liberal]

30. I did some research on options last night and will be closing my account as well.

It wasn't the 60% hike. $6 isn't an issue for a month's worth of videos - in fact, that is a great deal at twice the price.

My problem was the 2 websites, 2 databases, 2 bills. It was that PITA that had me searching for options.

I am Amazon Prime, and found out that a huge chunk of their titles can be viewed for free because of my shipping plan. Things unavailable on Netflix that were in my queue for mail are available NOW on Amazon (Bridesmaids, Roger & Me, Collapse - just to name 3 I tagged last night).

The other thing I noticed was that in checking new releases, Amazon has a month jump on Netflix. I can stream a movie as of tonight (today was the release, apparently) that will only be available on DVD at Netflix October 19 - and that doesn't mean that I get it right away as Netflix weighs their mailout by the volume of transactions you do with the company (more DVDs, the lower in the queue you go and the higher lower volume users get in said line).

I released all of my queue and will be bidding adios to Netflix/Quickster. If their service improves in the coming months, I can always go back.

I wish them well. Great concept, but maybe it is time for someone else to take the reins of the industry for a while.

[stubertmcfly]

36. Ditto

I suppose talking about money is all the rage right now but for me, the biggest turd in this announcement is the multiple site management debacle. Even with the price hike, Netflix is a good value and offered a variety of packages to suit most any budget/consumption need. Splitting the site into two is what is making me shop for other services. One of the dumber business decisions of recent memory. This Oatmeal comic captures it:
TheOatmeal.

[Ruby the Liberal]

42. Friendster, indeed. LOL!

[AllyCat]

43. Except for Amazon's DREADFUL human/worker rights record, I might do what you are doing

[Ruby the Liberal]

44. My Prime account renews in August.

Perhaps there will be a better option by then.

[Contrary1]

31. Keeping the streaming only...

I am finding a lot of older TV series I missed the first time around.

For those of you who enjoy the Upstairs/Downstairs type British offerings, I highly recommend Downton Abbey.

[dixiegrrrrl]

34. Downton Abbey is great!!!!!

Waiting to get the rest of it.

[Lydia Leftcoast]

33. I just picked some TV series (old or foreign) from my DVD queue and searched them on Amazon

Most of them are NOT available for streaming. The ones that are cost between $2.99 and 7.99 (that's right, $7.99) per episode.

I hate what Netflix is doing, but they're still the most economical game in town if your tastes are broader than this year's hits.

[astral]

57. Speaking of Amazon, what's wrong with Amazon Prime?

I think the unlimited streaming from them is pretty nice as a freebie for having Amazon Prime which is $70 per year. I am on a 30-day free trial of Amazon Prime, and I can cancel it or keep it. So far it works real good.

[Lydia Leftcoast]

59. Nothing wrong with it, but it doesn't have the things I want to see

and it still charges for many of the ones it does have.

[kstewart33]

35. I'm staying with Netflix.

Even with their new pricing, it's still a bargain.

I don't have the time to pick up and return DVDs anywhere.

Streaming has been fine for us - excellent with TV series that you can't get anywhere else, documentaries and at least some movies. My teenage girls love it.

We've been with them since they launched in '99 and we're staying put.

[shanti]

53. exactly

what you said. it's worth it for me. until it becomes not worth it, i'll keep it. i am thinking of cutting off my dish network though. it seems to be continually rising.

[Starbucks Anarchist]

38. I don't see the big deal.

You still get unlimited streaming and a set amount of DVDs out at a time for relatively little money. It's a great deal.

[Skip Intro]

46. I agree. nt

[in_cog_ni_to]

39. We LOVE Netflix streaming! They have a GREAT selection of old classic movies.

We have hundreds of movies in our queue. I would much rather stream than watch DVDs.

[gulliver]

41. That "Mea Culpa" was slimy and stupid.

It was nothing more than an announcement of further annoying changes disguised as an apology. It was an extremely offensive and stupid thing to do.

[Skip Intro]

45. I love the service, worth every penny, imho. I left Dish months ago, cut my tv bill by nine-tenths

by switching to over the air programming and Neflix, and haven't looked back since.

NF is the best deal out there, but I feel for their customer service reps. This company must have the whiniest clientele of any business on the planet.

[shanti]

54. edited

i found my answer :-)

[L. Coyote]

49. Cancelling effective time of price hike. Everyone should for at least a month or

longer just to give them some negative feedback.

[Codeine]

56. Netflix kicks ass.

People whine WAY too much.

[LynneSin]

60. I cancelled. I understand the reason for the price hikes but don't sugarcoat it like I'm stupid

I found the email they sent out beyond insulting.

I had read about some of the impending costs Netflix would have to take on to continue their streaming service. But when I got their assinine letter they pussyfooted around the reason reason for the hike but instead blew smoke up our asses like we couldn't add 2 numbers together and recognize a price hike.

[Supply Side Jesus]

61. I'm not happy with the split

I love Netflix and did not mind the price hike, too much. I believe it's worth it. But splitting the service and having to have 2 accounts.... I don't know. I'm find this to be a turn off and will seriously consider cancelling it.

[kstewart33]

69. I wouldn't.

Nobody beats Netflix for what you get for the price. No premier cable channel like HBO can compete. Amazon is not a $$$ alternative.

Splitting the businesses is a very smart business decision. It will simplify running the businesses and they'll better be able to develop a strategy for each and improve profits.

[Supply Side Jesus]

73. ya,I'll proly wait and see how they do it

hope they figure a smooth software integration...

[lonestarnot]

62. Tee hee. Shove it whiney butt. Take the money and run people.

[JDPriestly]

63. I love Netflix. I can think of two explanations offhand for the sudden

grab at customers' billfolds. First, it may be that they have settled some sort of legal challenge about the way they distribute movies. Second, they may now have some very GREEDY, GREEDY investors. If it is the second, then maybe pausing your subscription will teach some GREEDY, GREEDY investors a lesson. But if Netflix needs to raise its prices due to a legal challenge that is quite private, then their services are worth a little more money for us. We don't subscribe to cable. We don't watch much TV or Netflix, but Netflix is just perfect for us.

And by the way, this evening we watched Thirteen Conversations About One Thing -- and it was fantastic in our view. We love our Netflix.

[Obamanaut]

65. We have dial-up, so splitting DVD/streaming such that we get DVD

three-at-a-time is less expensive for us - same number of DVDs, less money.

[marions ghost]

70. I've given up on rental movies

the industry's in a mess. Netflix :thumbsdown:

[librechik]

71. I have 300+ items in my instant queue--netflix is great for what I want

and I don't miss the popular movies (stupid) or Disney( bizarre and creepy) If they come out with something good like Up or Tangled, I buy the DVD. It's difficult for me to find something on DVD at netflix that I like, really, except for the old British TV.

I had signed on this month to continue my DVD delivery, so don't know what will happen next.

[closeupready]

72. Ever the contrarian, I only recently started subscribing, and was

only interested in streaming. I think the selection is not terrific, but it's okay, and also they have interesting TV shows, like Alfred Hitchcock Presents or Kolchak, so I think it's worth $7.99/mo.