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Throttled by Netflix


Playaa

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thought you guys might be interested in my recent letter to Netflix. I am pretty unhappy about this...but I am definitely following through and will be cancelling my account today. Here's the letter I wrote them:

To date I have convinced 6 households to join Netflix. I wouldn't have done that if I wasn't satisfied with Netflix. In fact, I was extatic about Netflix. The service was impeccable, the prices were great and the DVD selection was astounding. Of course, that all ended when I decided to give Netflix more of my money. Apparently, Netflix believes that me giving them more of my money means that I deserve worse treatment and a worse product.

I joined Netflix using their 2 week trial with the intention of never paying them money, only using the service to get a few specific DVD's I wanted to watch. After those 2 weeks I completely changed my mind. I signed up, happily, with their 2 DVD's at a time plan. For a year I had that plan and consistently received 2 DVD's every 3 days. I eventually cancelled that account due to lack of time for watching movies. I later moved to a different house 30 minutes away. I got another Netflix account there and for 4 months I was, again, incredibly happy with the 2 DVD's at a time plan. So happy that I decided to up my account to 4 DVD's at a time (Unlimited a month supposedly).

For the first few weeks of the new plan, everything worked just the same. I always had a DVD to watch, unlike the 2 DVD's plan; which was the exact reason I had upgraded my account. After those happy few weeks I started to notice (for the first time ever) that DVD's in my Queue were showing wait times, varying from "short wait" to "long wait". That had never happened before with any movie, but it wasn't a big deal. Then my shipments started passing by the first few choices in my selection for my next DVD, even though they would say: "available now". Again, this wasn't a huge problem, just a slight annoyance. Last week, however, was the straw that broke the camels back. For the 3rd time in a month I received a DVD for a television show out of order (received disk 3 before recieving disk 2), even though they were in my queue in the proper order. I was even ok with this since, according to Netflix, both disks had shipped on the same day. I assumed the 2nd disk would arrive the next day. 5 days later and I still have 1 disk in my possession even though Netflix recieved my last disk 5 days ago. With my 2 accounts combined, I have used Netflix for a year and a half. In all that time, no more than 4 disks took longer than 2 days to ship to my house from my local Netflix facility.

I was once incredibly satisfied with my Netflix service. Now I am sorely disappointed. I actually didn't believe the rumors of "throttling" by Netflix. Now that I find myself the victim of being in the minority of people who rent more than 11-13 films a month, I fully believe the truth of throttling.

As of today, I will cancel my Netflix account and move over to Blockbuster. I will do everything in my power to convince those 6 households to do the same. I realize that $100 a month isn't a huge deal to a corporation like Netflix, but I am doing everything I can as a consumer to show my disappointment with the product. I find the business practice of alienating the minority to add a few cents to the profits to be despicable and underhanded. If enough consumers feel the same way and do everything in their power to show it, then maybe Netflix will actually listen.

 

Sincerely,

James Wright

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the system works fine as long as you are a normal subscriber.

Me...I am a young guy who has no friends in his town (they've all gone to college while I went with the "career" thing)...so I spend every weeknight at home...I tend to watch 1 to 2 movies a night...so basically I am less profitable for Netflix than someone who watches 2 movies a week. I am the minority.

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They did a story on this on CNN today. Seems that it is actually intentional on their part to slow service to those that get more movies at a lower cost for the consumer. Shady business if you ask me.

 

Ya I remember the article on CNN. A customer was upset because he had the 'unlimited rental pass,' but they flagged his account because they said he "rented too much."

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The issue that they are trying to combat is the people who get the dvds, burn them and then send them back the next day.

 

 

That is one of the biggest reasons right there. My old roommate used to do that religously. He would get them, burn them, and send them back the next day. It worked great for him for the longest time, unfortunately, and then they started "taking longer" to get to his house. I loved my netflix subscription but i have seen the flaws and agree with you. Its just too bad that it isnt easier to get some kind of a corrective action out of them. They may not care about the one or two leaving but eventually thier plans will backfire on them. The letter was good btw.

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Rumor has it they actually changed their agreement liscence to now state that heavy renters may see delayed shipments or second/third choice rentals before 1st choise.

 

it's definitely not rumor...it's right there in the license agreement...I read it right before I cancelled my subscription

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The pirating may be a side issue, and the rate at which killz was saying his roommated copied the videos and sent in for new ones adds to the major issue (at least from what I've heard is the major issue) which is shrinking profit margins. I don't subscribe to netflix, but from reading the news (so take it for what its worth) and from what I hear its all about profit. The guy that the CNN article was about was paying I think $20 a month. I believe, from memory, that to ship the DVDs its what like 75 cents each way? Netflix pays the shipping, so it doesn't take a degree in mathematics to figure out that netflix is only going to want you to rent 3 or 4 a month versus 10+.

 

EX.

Lets use $20/mth for the service and say 1000 subscribers as an example.....

Normal Renter (4/mth)

$20 - (4 rentals x $0.75 x 2 <each way>) = $14 Let's incorporate $4 pp as overhead = $10 / mth pp profit

$10 x 1000 subscribers = $10,000 / mth profit

 

Heavy Renter (10/mth)

$20 - (10 x $0.75 x 2 <each way>) = $5 - $4 oh = $1 /mth pp profit

$1 x 1000 subscribers = $1000 / mth profit

 

 

Not that I'm saying what they are doing is right or that I condone the throttling, but as a business, which kind of renter would you rather have?

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The pirating may be a side issue, and the rate at which killz was saying his roommated copied the videos and sent in for new ones adds to the major issue (at least from what I've heard is the major issue) which is shrinking profit margins.

 

 

Copying DVD's that's apauling!!!!

 

 

*runs and hids his "backed up" dvd's*

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Good Read

 

^^ The link above is about how Apple and the Ipod might work with Blockbuster in renting movies.

You would rent the movie on the ipod and connect it up to your tv to watch it.

 

Maybe this might be something little BB could add on to the retals for those who switched over :)

 

neat. A friend of mine has the new video Ipod and he showed me how to upload full DVDs onto it.

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Just wait for Blockbuster to follow the same path... They will have the same reason as well. And if it works for Netflix, why wouldn't it work for them?

 

That said, my wife and I have had Blockbuster's service for a month on a free account and have only had one problem with a DVD that we never received. Reported it, and it was there a day later.

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J, Blockbuster already says they do the same thing...and honestly, if I didn't watch so many movies I wouldn't use either service...but renting movies, even at a dollar apiece from my local rental place...I'd spend more than $20 a month for sure...sad isn't it?

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Just starting Blockbuster yesterday....but from what I know it depends on what kind of user you are. I tend to go thru alot of DVDs so my queue with netflix had 13 DVDs with various 'WAIT' stages. So as long as I didnt want to rent any NEW movies, Netflix was fine. With 3 DVD plan I averaged around 12-16 movies a month.

 

I just signed up for Blockbuster and all of my top movies were 'AVAILABLE' with them. Now to see how quickly they check-in and ship back out.

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Mini, so far Blockbuster has been just as fast as Netflix.

 

Mags...if you rent alot I'd say Blockbuster solely for the ability to get 1 movie a week from their stores...if you just rent and watch maybe 1 or 2 movies a week...Netflix

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Member
thats really intresting.. I-Pod-movie-rentals.. and then you hook it up to your TV.

 

intresting tell me more

 

NuT-=0

 

no...that's illegal...don't do it.

 

*edit*

in fact, not only is that illegal...that is the entire reason that paying customers like myself get screwed by Netflix...because of paying customers who cheat the system like that.

Edited by Playaa/Pselus
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