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September 27, 2011: "The Great Netflix Customer Rebellion" 
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Gaffer

Joined: Tue Jul 13, 2010 1:08 pm
Posts: 28
Post Re: September 27, 2011: "The Great Netflix Customer Rebellion"
While I don't want to vindicate Netflix completely, my understanding is that the studios have been jacking up the prices on streaming. A few years ago when Netflix really started booming nobody had yet recognized the profitability of streaming video, but now it's obvious and the studios want their piece of the pie.


Thu Sep 29, 2011 9:32 pm
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Post Re: September 27, 2011: "The Great Netflix Customer Rebellion"
If the future of movie watching is definitely non-physical (still don't see it) then how about, for a start, trying a system like that used by Steam?

With Steam, you purchase a game which is then added to your 'library'. You can then download/install and uninstall the game as many time as you like, from any computer on which you have the Steam client installed.

This deals with the obvious but lesser mentioned issue of our digital age whereby people allow their computers/hard drives to overheat, break and lose the content therein.

amirite?

(disclaimer: I've NEVER used iTunes (and don't intend to start) so I don't know if purchasing songs this way has a similar guarantee or not)


Fri Sep 30, 2011 10:13 am
Post Re: September 27, 2011: "The Great Netflix Customer Rebellion"
botdx wrote:
While I don't want to vindicate Netflix completely, my understanding is that the studios have been jacking up the prices on streaming. A few years ago when Netflix really started booming nobody had yet recognized the profitability of streaming video, but now it's obvious and the studios want their piece of the pie.


Exactly. When costs rise for a business, that's passed on to the consumer. That's how this crazy economic system we have works. Netflix's cost to the consumer went up by 60%. Their costs for streaming licensing rights went up by over 600%! I think the rise in price is more than justified in this instance, and frankly, complaining about it shows a gross misunderstanding of how virtually any business operates. PR is needed in cases like these because the majority of people don't take the time to figure out what is actually going on. It's easier to blame the guy on the front lines than it is to actually think about what's happening.

Netflix price increase bad! Why price increase? Does not compute! Netflix price increase bad! Me hate Netflix!

Now, if you want to complain about the quality of the titles available to stream, which James is, that's fine. Personally, I use it for older films, foreign films, mainstream stuffed I missed from a few years ago, and TV shows. It works for me. If someone is using the streaming service as their primary avenue to watch movies, they likely will be disappointed in the selection. There just isn't enough new, mainstream stuff for the average person. Still, if you watch one movie a week, it's worth the $8 a month, I think. Also, like Ken pointed out, now that they've split the DVD and streaming services into 2 separate companies, it's likely they'll concentrate on buffing up the selection.


Fri Sep 30, 2011 10:33 am
Second Unit Director

Joined: Wed Aug 03, 2011 10:11 pm
Posts: 432
Post Re: September 27, 2011: "The Great Netflix Customer Rebellion"
The question I was wondering if Netflix is bad because of their bad business model or is it the studios who are part of the problem.I was wondering why none of the major studioes haven't started up an affordable streaming service yet.This excerpt from Film School Rejects article "6 things the Film Industry Does Not Want You to Know About "seems to me an interesting point if the content holders are strangling the customer on purpose.

If you’re like many millions of other Netflix customers, you were probably pissed off when they jacked up their prices last month, effectively doubling the cost of some people’s subscriptions. And before that, you were probably annoyed when they started putting out their DVDs 28 days after they went on sale. And maybe you’re mad now that they’re losing their contract with Starz because they had an argument about money.
It’s almost like Netflix got tired of making money or something. Why do they keep doing all this stupid stuff? Well, simply put, it’s not really their fault. You see, film studios aren’t the biggest fans of things like Netflix, Redbox, or Hulu. You know, those things that allow you to pick and choose what you want to watch when you want to watch it for a reasonable, affordable price. The reason is that it eats into their sales of DVDs and pay-per-view rentals, for which they get a much higher cut of the profit. As DVD sales drop, movie studios panic.
So, instead of adapting their business model to a format that consumers obviously prefer, they’d rather try to turn back the clock and take away the distribution methods people love and enjoy. That means demanding more money from Netflix to lease their movies, ever-increasing delays between a DVD’s release and its availability out of Redbox machines, and putting Hulu, a service created by the content creators themselves, up on the auction block when it ended up being too successful. The Time Warner CEO has even taken to blasting Netflix in the press for the last year, describing them as a “fading star.” You’d fade, too, if someone wrapped their hands around your throat.


Fri Sep 30, 2011 4:32 pm
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Post Re: September 27, 2011: "The Great Netflix Customer Rebellion"
News has it that Amazon has the inside track to buy Hulu.


Fri Sep 30, 2011 8:27 pm
Producer
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Joined: Tue Jun 30, 2009 1:35 am
Posts: 2116
Post Re: September 27, 2011: "The Great Netflix Customer Rebellion"
I kept both services, and always thought of the instant streaming as a perk, not the main service. I like the DVD service better anyway because I like to watch old films, including silents and foreign films that aren't likely to be streamed. Besides, there are a lot of movies that just don't look good on a computer monitor.

_________________
Evil does not wear a bonnet!--Mr. Tinkles


Fri Sep 30, 2011 11:38 pm
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Post Re: September 27, 2011: "The Great Netflix Customer Rebellion"
http://www.nytimes.com/2011/09/26/business/media/netflix-secures-streaming-deal-with-dreamworks.html

^ anyone read that?

Netflix has purchased exclusive rights for all upcoming Dreamworks Animation titles (beginning 2013). That means no Dreamworks Animation on cable. Only streaming. What does Netflix pay. $30 Million. PER MOVIE.

That's right. Netflix will pay $30 Million for every Dreamworks animated feature. That's a heck of a gamble. Especially since the deal starts in 2013. That might not seem like a long time, but Netflix has reportedly lost half its value in the last few months. Who knows what will happen by then especially in light of other studios attempting to launch their own streaming service or negotiating aggressively over streaming costs.

James Berardinelli wrote:
Vexer wrote:
James Berardinelli wrote:
Unless I'm mistaken, Amazon Prime uses flash for their streaming service - can't play it on an iPad. Major disadvantage.

Most people don't like watching films on an iPad anyways(too damn small) so that dosen't seem like a big deal.


You'd be surprised. 80% of iPad owners say that they regularly/sometimes watch movies on their iPad. It's a terrible way to watch visually sumptuous films, but it's okay for small, independent productions and TV shows. I use it that way when I don't feel like trudging down to my basement home theater.


80% of a (so far) statistically negligible number is still a statistically negligible number. The most recent figures I could find (April) say that the iPad accounts for about 1% of web traffic and about 0.63% of Netflix's traffic.

To put this into perspective: Linux accounts for about 0.80% (or about 80% of 1%) of web traffic. You can't stream Netflix through Linux. You can, however, stream Amazon Prime through Linux. I don't hear too many people saying that this is a major disadvantage for Netflix.

I grant that iPad traffic will continue to grow but currently it represents a mere drop in the streaming bucket.


Fri Sep 30, 2011 11:44 pm
Post Re: September 27, 2011: "The Great Netflix Customer Rebellion"
30 million per movie, damn! Talk about counting your chickens before they hatch, if they end up making similar deals with other studios and end up paying similar amounts in the 20-25 million dollar range, they could very well soon be filing for bankruptcy.


Fri Sep 30, 2011 11:48 pm
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