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Netflix 'Overreaction' to Massive Stock Losses?

Discussion in 'Google TV News' started by alphawave7, Sep 19, 2011.

  1. alphawave7

    alphawave7 Moderator Staff Member

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  2. stuberman

    stuberman Member

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    Since their price hikes they have lost 600,000 customers (out of 24 million).
    As of tonight they can add me to that list - although instead of cancelling my subscription I put it on 'hold' and set reactivation for the maximum 90 days.
    I am giving them a chance to fix the disaster they created before cancelling.
     
  3. Maconsultant

    Maconsultant Member

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    Why..? Just cancel and be done with it. Let them understand customers make the company.

    Now if everyone else would just wake up and see that this same philosophy works across all business models and industries.

    Companies need your (The Customers) money to function, without it they will go the way of the dinosaur. I say they will change or dry up.. personally I'd like to see them dry up..

    Sent from my Nexus S using Tapatalk
     
    Last edited: Sep 19, 2011
  4. revenge8

    revenge8 New Member

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    i cant begin to state how dumb this is. netflix is just like every other greedy company, who will become bankrupt due to its own misdoings. Way to confuse and anger customers. This is just going to lead to a spike in pirating, due to the frustration customers face. I am a customer and i have already minimized my account and this is just the thing to make me angry enough to cancel. See ya netflix.. hello piratebay.
     
  5. Maconsultant

    Maconsultant Member

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    All paying customers should cancel Netflix, Hulu and any other company that tries to fleece them.

    CUSTOMERS MAKE AND BREAK COMPANIES.!

    Sent from my Nexus S using Tapatalk
     
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  6. eferz

    eferz Well-Known Member

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    From a customer perspective this blows. I enjoyed the combination of both services since streaming allowed me to enjoy content at will. However, the bulk of the instantly watchable content was not up to date movies. So, I used their DVD rental services to fill in that gap, and then used the streaming service while waiting for the next DVD.

    From a business perspective, it's the smartest thing they done to protect the Netflix brand. It is clear that the content providers are demanding more than just compensation for their content but that they want to enforce exclusivity. By splitting the services into two separate business models, they are protecting their newely diverged services from affecting the deals from the other service. This will reduce the leverage the content owners will have over either services.

    Additionally, this will allow them to simplify their individual business model and revenue reinvestment by allowing the customer to decide (via participation or lack thereof) what is more important to them. Before hand the two blended services were acting more like a crutch for one another. Now that the two services are acting independently, they will need to step up their game in order to stay competitive in either market. I suspect in the short-term they will suffer a bit but in the long run it will allow them to prosper.

    Of course, this news make little difference to me since I've already downgraded to Netflix's streaming only service and went with Blockbuster for the DVD rental service. One might even say that I saw this coming.
     
    Last edited: Sep 19, 2011
  7. Rickaren

    Rickaren New Member Staff Member

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    Netflix: We're Sorry, But Not THAT Sorry

    [​IMG]



    Washington, D.C. (September 19, 2011) -- Netflix CEO Reed Hastings took to his company's blog last night to apologize for his company's decision to change its pricing structure for renting discs and streaming videos.

    "I messed up," Hastings wrote. "I owe everyone an explanation."

    However, in his mea culpa, Hastings points out that Netflix is not changing that new pricing structure that may have already led to perhaps one million subscribers ending their membership. Starting this month, Netflix no longer offers a $9.99-a-month plan allowing subscribers to stream videos and rent one DVD at a time. Instead, you now have to pay $15.98 a month to keep the combination of the unlimited streaming option and the one DVD at a time rental plan

    Instead of abandoning the new pricing plan, Hastings said the company will begin calling its DVD/Blu-ray disc rental service "Qwikster" and the name "Netflix" will refer to its streaming business. Qwikster will have its own web site, Qwikster.com. (The site will be launched in the next few weeks, Hastings said, adding that Qwikster and Netflix will appear as separate charges on customer credit cards.)

    In addition, the company will add a video games upgrade option to Qwikster for people who want to rent Wii, PS3 or XBox 360 games.

    "Members have been asking for video games for many years, and now that DVD by mail has its own team, we are finally getting it done.," Hastings writes.

    So what exactly is Hastings apologizing for? The Netflix executive says he didn't clearly communicate to his customers why the company was changing its pricing structure.

    "When Netflix is evolving rapidly, however, I need to be extra-communicative. This is the key thing I got wrong," Hastings says. "In hindsight, I slid into arrogance based upon past success. We have done very well for a long time by steadily improving our service, without doing much CEO communication. Inside Netflix I say, "Actions speak louder than words," and we should just keep improving our service.

    "But now I see that given the huge changes we have been recently making, I should have personally given a full justification to our members of why we are separating DVD and streaming, and charging for both. It wouldn't have changed the price increase, but it would have been the right thing to do."

    Netflix is clearly feeling the heat of its decisions. Bloomberg News reports that
    Dish Network this week will unveil pricing for a new Blockbuster streaming movie service that will compete directly with Netflix.


    SOURCE
     
    Last edited: Sep 19, 2011
  8. HeatherA

    HeatherA New Member

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    I received the email from him this morning... all it did was leave me scratching my head. Funny thing is, just yesterday, I was considering staying with both streaming/DVD and dealing with the increase. This change just makes me want to cancel the DVD side which I am now going to do.
     
  9. ChrisG8

    ChrisG8 Well-Known Member

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    Which companies provide a streaming service like Netflix for less money?
     
  10. eferz

    eferz Well-Known Member

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    FYI, Blockbuster seems to have extended their plans.

    Legitimately, Crackle does. Albeit very limited content.

     
    Last edited: Sep 19, 2011
  11. Maconsultant

    Maconsultant Member

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    I am an Amazon prime member as I buy a ton of stuff from Amazon so the free movie streaming for prime members works for Me. I can understand Netflix needs to make more, but just not 6x% over night. They could have stretched the 6x% fee hike over the next year. But they deceided to do it over night. During a recession.! Ha. Ill say it again people need to wake up and remember that the cash they spend on things is a huge bargaining tool. If the company is not acting right or doing right by the customer base then don't spend a dime with them. They will change or as I said before they will go the way of the dinosaur.

    Sent from my Nexus S using Tapatalk
     
  12. ChrisG8

    ChrisG8 Well-Known Member

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    I like Crackle and Amazon Prime Instant Video but neither is comparable to Netflix in terms of selection, not even close. I assumed the correct answer to my question was nobody. Amazon Prime might get there in the future, although at the rate the Amazon selection is growing, it will be the very distant future.
     
  13. eferz

    eferz Well-Known Member

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    Ahh, but "selection" wasn't one of the qualifiers; just "less expensive streaming service". Crackle is free and Amazon Prime is $6.67 a month and both are legitimate answers to the original question.

    Had you wrote...
    Then it would have been nobody legitimate. You'd have to go into the deep seedy recesses of illegitimate services like uWatch or the BigU.

     
    Last edited by a moderator: Jul 30, 2014
  14. ChrisG8

    ChrisG8 Well-Known Member

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    Last edited: Sep 19, 2011
  15. eferz

    eferz Well-Known Member

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    I suppose that I made mistake of not assuming what you inferred by the question as opposed to the literal question.
     
  16. stuberman

    stuberman Member

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    I put the account on hold to deprive them of an income while I wait to see if they come to their senses. I doubt they will but I don't want to lose all of my queues (way too long) if they have a change of heart.
     
  17. Winkle

    Winkle New Member

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    doesnt it cost more to run 2 business's.. maybe they will split up and expand.. start to rent games ect.. and have a larger online selection..
    could be good becuase they both cant survive alone.. together it was a decent hook.. boo to Netflix!
     
  18. ChrisG8

    ChrisG8 Well-Known Member

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    Well, we can certainly disagree, I would assume you would respond to "What company offers a car like a Mercedes for less money?" with an answer of Kia. Kia would be an answer for what company offers a car for less money than Mercedes but you have ignored the like Mercedes qualifier. My question is no different, you ignored like Netflix and offered one of hundreds, maybe thousands of services that are less expensive, in fact, you offered a free service funded by advertising with commercials as an answer, hardly anything at all like Netflix.
     
  19. Rickaren

    Rickaren New Member Staff Member

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    Will Blockbuster Stream Past Netflix?

    By Swanni
    Washington, D.C. (September 21, 2011) -- The drama is building for Friday's press conference in which Blockbuster, under new owner Dish Network, is scheduled to unveil its plan to compete with the suddenly wobbly Netflix.

    Netflix, whose stock has plunged nearly 38 percent in the last week, is reeling due to the company's decision to change its pricing structure and separate its DVD and streaming divisions.

    The company says it will likely lose one million subscribers in the third quarter thanks to the pricing change and it could lose more in the fourth quarter.

    Meanwhile, Blockbuster is issuing invitations to its Friday press conference in San Francisco that says it will launch "the most comprehensive home entertainment package ever." The event is expected to focus on a new Blockbuster streaming plan since the invitation's title is,
    "A Stream Come True."

    Dish Network, which purchased Blockbuster in a bankruptcy auction earlier this year, is known for having a killer instinct when facing a struggling competitor. Over the years, the satcaster has suddenly lowered prices or launched counter programs to take advantage of a rival's difficulties.


    SOURCE
     
  20. Rickaren

    Rickaren New Member Staff Member

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    09/21/2011



    SOURCE
     

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