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Los Gatos, Calif.-based Netflix didn't publicly acknowledge it differentiates among customers until revising its "terms of use" in January 2005 — four months after a San Francisco subscriber filed a class-action lawsuit alleging that the company had deceptively promised one-day delivery of most DVDs.

"In determining priority for shipping and inventory allocation, we give priority to those members who receive the fewest DVDs through our service," Netflix's revised policy now reads. The statement specifically warns that heavy renters are more likely to encounter shipping delays and less likely to immediately be sent their top choices.

yahoo


Ive been pretty happy with netflix, some months i get more movies that others, recently i think ive been 'throttled' as im still waiting to see 40 yr old virgin and finally got Madagascar this week for my daughter. Ive had no problems with shipping, just getting the newer movies can be a wait. Plus ive got alot of older movies id like to see it doesnt bother me much. Thought the article was an interesting read.

 

[Teddman]

OK, OK... It may be a new article, but news of this practice and subscriber reactions is as old as the hills. Even Blockbuster Online admits the same of its service in the newest commercials (something like "some heavy subscribers may experience different service or limits on service").

 

[Jagwire1141]

so netflix was trolling?

 

[GilloD]

Netflix has been awful ever since Christmas. I usually get 2-3 day turnaround, my last disc was NINE days. On top of that, they shipped me a movie SIXTEEN places down my queue when the other 15 were, allegedly, 'Available Now'.

Shrug. They still got my vote, but there's been some shady actions.

 

[Phoenix]

They would do better being honest with their customers and putting up a table that says:

1-5 movies/month: 1-2 day delivery
5-10 movies/month: 3-5 day delivery
10+ movies/month: 7+ day delivery

That way people would know they are going to be screwed and how bad up front and wouldn't have this expectation going in. What NetFlix is doing now is just creating a breeding ground and business/marketing plan for their next competitor.

 

[Christoff Yurievich]

wouldn't it make more sense to make those people happy instead of pissing them off so they go to another service? (other than the fact there really isn't another service)

 

[BlackMage]

wouldn't it make more sense to make those people happy instead of pissing them off so they go to another service? (other than the fact there really isn't another service)

www.blockbuster.com - 1 free in-store rental a week, what?

 

[Soybean]

wouldn't it make more sense to make those people happy instead of pissing them off so they go to another service? (other than the fact there really isn't another service)

Well, if they're not profitable customers, I can see why Netflix wouldn't care (although it does create bad buzz).

 

[Asbel]

www.blockbuster.com - 1 free in-store rental a week, what?

That is brilliant marketing. Who drives to BB for just one movie? Expect Netflix to fight back.

 

[emomoonbase]

Who the fuck cares, netflix is still a damn good deal. I mean all I have to do is sit on my ass!

 

[Teddman]

I don't know how attractive that Blockbuster deal truly is. Half the appeal of these web rental services is NOT having to go to a store. Plus, the movies you rent free from Blockbusters have due dates, late fees, and essentially require two trips to the store when you factor the return... It's a wolf in sheep's clothing.

They've been offering a free movie a month for the last year and Netflix was still growing at a faster pace than Blockbuster Online.

 

[Phoenix]

Well, if they're not profitable customers, I can see why Netflix wouldn't care (although it does create bad buzz).

And that my friend is why Blockbuster is where they are today and Netflix can quite easily find itself in the same position in less than 5 years - holding out their hand begging customers to come back.

 

[Lhadatt]

And that my friend is why Blockbuster is where they are today and Netflix can quite easily find itself in the same position in less than 5 years - holding out their hand begging customers to come back.

Exactly. Treat all customers like gold.

Now, they could probably cross-market additional offers to those heavy renters for the possibility that they'll bite and generate additional revenue. They could easily use their database for profiling and identifying customers ripe for different offers.

 

[The Take Out Bandit]

And that my friend is why Blockbuster is where they are today and Netflix can quite easily find itself in the same position in less than 5 years - holding out their hand begging customers to come back.

Is it really that simple?

I thought increases in pricing, reduced rental periods, and poor selection are what did Blockbuster in. In my experience it was always something like this . . .

Go to Blockbuster to rent a movie - can't find the one I'm interested in, but god damn there's a billion copies of the latest Adam Sandler flick, of Matrix movie! WOW!

The same goes for video games, only replace Adam Sandler flicks with a billion copies of Ready 2 Rumble 2 Boxing.

So far Netflix has been good to me. I suppose a lot of the bitching arises from folks just being oblivious to the pick-up times of their post office. I get two movies a week, which is more than enough for my schedule, and if I drop them in the mail Monday morning - I'll have two new movies by Wednesday.

Overall it's a huge savings for me which is the most important part.

 

[Phoenix]

Is it really that simple?

Actually it is. Video on demand and secure downloadable/expirable content will move in next and destroy the mail market. Its just the way of things.

I thought increases in pricing, reduced rental periods, and poor selection are what did Blockbuster in. In my experience it was always something like this . . .

What you just described was a crappy customer experience and that is something that people are starting to complain about with Netflix. You can treat a customer like shit only so long as you control the high ground in the market. Once you lose that, you can expect your customers to leave in number and not look back, many not returning even if you improve. People left cable in droves for satellite because the customer experience was poor. As technology with broadband and the like opens the door for video over IP in a reasonable way, the paradigm will shift again. In content delivery, technology change is the most disruptive factor in the business model.

The same goes for video games, only replace Adam Sandler flicks with a billion copies of Ready 2 Rumble 2 Boxing.

This may very well be the last generation that doesn't do online content delivery.

So far Netflix has been good to me. I suppose a lot of the bitching arises from folks just being oblivious to the pick-up times of their post office.

Blaming the customer is never a winning proposition in a business plan People don't want to know when their post office picks up the mail any more than they want to go to Blockbuster and drop off a movie. When you are offering a service of convenience, you have to be convenient. These are luxury services. Nobody 'needs' these services so rapid and sustained loss of market share is possible as soon as someone comes along with a better customer experience.

 

[Nerevar]

What you just described was a crappy customer experience and that is something that people are starting to complain about with Netflix. You can treat a customer like shit only so long as you control the high ground in the market. Once you lose that, you can expect your customers to leave in number and not look back, many not returning even if you improve. People left cable in droves for satellite because the customer experience was poor. As technology with broadband and the like opens the door for video over IP in a reasonable way, the paradigm will shift again. In content delivery, technology change is the most disruptive factor in the business model.

wait, what? People left cable for satellite because they got a shitload more channels at a relatively better value, that's it. The "customer experience" of dealing with a satellite company (Dish or DirecTV) is roughly equal to dealing with a cable service rep, i.e. getting a bleach enema while your toes are set on fire.

 

[The Take Out Bandit]

I'd love to see a movie equivalent of iTunes Music Store. Although my Internet connection may or may not be here tomorrow, so mailing is a safer option for me.

I'm afraid DRM and format jousting contests will screw this up for the consumer though.

I'm the wacky exception to the rule as I don't even have cable, much less satellite TV. I live under a rock.

People don't want to know when their post office picks up the mail any more than they want to go to Blockbuster and drop off a movie.

That's because people are f'ing lazy. I'd say that's a condition worth curing. Note: Not defending Netflix here, just arguing for the betterment of society.

My tune will probably change once I find a nice rock in the desert to live under.

 

[Phoenix]

wait, what? People left cable for satellite because they got a shitload more channels at a relatively better value, that's it. The "customer experience" of dealing with a satellite company (Dish or DirecTV) is roughly equal to dealing with a cable service rep, i.e. getting a bleach enema while your toes are set on fire.

The "customer experience" is not customer service.

 

[Space Age Playboy]

Is it true that Satellites don't work so great in the rain, or is that cable company BS?

I'm thinking of switching but not if the reception sucks in the rain.

 

[Synth_floyd]

I was "anti-throttled" when I did a Blockbuster trial. I noticed one movie that I wanted went from "short wait" to "shipped" in about a day when it was high on my queue. Coincidence? I think not. The moral of the story is only get the trials for these services and never actually pay money for them.

 

[suaveric]

QUOTE=Space Age Playboy]Is it true that Satellites don't work so great in the rain, or is that cable company BS?

I'm thinking of switching but not if the reception sucks in the rain.[/QUOTE]

Heavy rain and/or snow can effect satellite, yes. But it's generally temporary (5-15 minutes).

 

[Nerevar]

The "customer experience" is not customer service.

I still fail to see how the "customer experience" is any better. Maybe it's because I've always lived in an urban market ....

 

[Hitokage]

Is it true that Satellites don't work so great in the rain, or is that cable company BS?

I'm thinking of switching but not if the reception sucks in the rain.

It's really during strong thunderstorms that it's a problem. Normal rain doesn't do anything.

 

[suaveric]

It's really during strong thunderstorms that it's a problem. Normal rain doesn't do anything.

I've had it go out during snow storms as well, but it is only when the largest clouds are right over your house.

 

[Tain]

don't know how attractive that Blockbuster deal truly is. Half the appeal of these web rental services is NOT having to go to a store. Plus, the movies you rent free from Blockbusters have due dates, late fees, and essentially require two trips to the store when you factor the return... It's a wolf in sheep's clothing.

I don't have it myself, but one free game rental a week ain't bad alongside movies, from what I can tell with my girlfriend.

 

[Teddman]

Actually it is. Video on demand and secure downloadable/expirable content will move in next and destroy the mail market. Its just the way of things.

I can see the DVD-by-mail services hanging on for quite awhile though. I predict it'll be over a decade before downloadable services like On Demand will be able to offer the breadth of selection that Netflix does, which will become their key feature. And doesn't Netflix have some kind of investment in Video On Demand tech?

 

[Mairu]

I don't have it myself, but one free game rental a week ain't bad alongside movies, from what I can tell with my girlfriend.

It's only movies. When they started the online, it was two coupons a month for movies or games... after they realized how much of a bargain it was to use the coupons for games they changed it for all new subscribers to two coupons a month for only movies. Now it's one coupon a week

 

[echoshifting]

I can see the DVD-by-mail services hanging on for quite awhile though. I predict it'll be over a decade before downloadable services like On Demand will be able to offer the breadth of selection that Netflix does, which will become their key feature. And doesn't Netflix have some kind of investment in Video On Demand tech?

There have long been rumors of a Tivo/Netflix alliance to deliver content in this kind of fashion. I expect that it will probably happen in one way or another before too long here. Netflix hasn't forgotten ALL of the lessons of Blockbuster.

Of course....I also expect throttling to carry over right into that kind of delivery.

 

[Saurus]

My queue top ten:

Very Long Wait
Very Long Wait
Very Long Wait
Very Long Wait
Short Wait
Long Wait
Long Wait
Short Wait
Very Long Wait
Very Long Wait

 

[Wellington]

Damn I just signed up for netflix last night with the one at a time, unlimited per month deal. After having read the horror stories in here, I just changed it to two at a time, since really what I will be doing is viewing and sending back pretty much within a day or two. Say it ain't so, GAF.

Ah well, I am excited about the service. I'm not a huge movie guy nor do I buy a lot of DVDs but I am often cursing at the ol' tv.yahoo.com since there is nothing on (until baseball season starts that is!).

 

[mrklaw]

Actually it is. Video on demand and secure downloadable/expirable content will move in next and destroy the mail market. Its just the way of things.

.

sky satellite TV in the UK is already shipping its PVRs with half the HDD storage reserved for 'push VOD' services.

When their HD service launches in the next couple of months, they will only have two box office (PPV) channels. Most likely these will be automatically recorded during periods when you aren't using both tuners (eg just watching live, or overnight)

so when you want to watch a PPV movie, its right there for instant starting.

To do the equivalent 'almost VOD', requires approximately 5-8 channels per movie, each with staggered starts.

 

[Flynn]

www.blockbuster.com - 1 free in-store rental a week, what?

In-store selection at Blockbuster sucks, unless you like watching Leprechaun movies.

 

[Dr_Cogent]

The original link is bogus. Does someone have the real link?

 

[Ponn]

It's only movies. When they started the online, it was two coupons a month for movies or games... after they realized how much of a bargain it was to use the coupons for games they changed it for all new subscribers to two coupons a month for only movies. Now it's one coupon a week

New subscribers. Current subscribers were given a choice to keep the ultimate two coupons or go with the borked 4 coupons. I just used my coupon the other day for a game. Which is nice because they are up to almost 8 bucks a rental now here.

Is it true that Satellites don't work so great in the rain, or is that cable company BS?

I'm thinking of switching but not if the reception sucks in the rain

Use to sell those damn DirecTV's at Blockbuster. My sister hates me for selling her's because its always going in and out from rain and a tree outside. There Customer Service and Installation was absolutely fucking horrible too. This poor guy I sold one too called me up at the store and was complaining because they came out, laid wire all over the place, dug up his yard and had holes in his wall where they were trying to run wiring for the boxes to rooms and get a pole up for the dish. He said they left it like that and he hadn't seen them for a week. I was on the phone with Customer Service for the poor guy for 3 days having to re-expain the situation over and over to each new rep and them always saying they were going to take care of it and nothing happening. They finally got out there and finished the job half ass and the guy was so pissed. A month later he got like a 300 dollar bill for the installation work they did and he flipped out. I got bitched out pretty bad since I sold him the thing and I was the only person in front of him but I washed my hands of DirecTV at that point and refused to sell one ever again. My district manager learned to not even bug me about it and left me alone from the subject. Suffice to say Blockbuster soon after just dropped pushing selling it and I have a strong feeling they regretted getting involved.

 

[Dr_Cogent]

I knew something was up with those fucks. Everything was spritely and quick when I first signed up, but over time, it all started slowing down. Throttling is definitely for real IMO.

Those fucking bastards. Maybe once GRAW hits and Oblivion, I cancel those fuckers.

 

[Duck of Death]

In-store selection at Blockbuster sucks, unless you like watching Leprechaun movies.

And what is wrong with Leprechaun movies1?

 

[Saurus]

Netflix was great at first. Had a turnaround time of a couple days, got all the new releases on the tuesday they released. Now it's just awful as far as new releases are concerned. I've actually went to blockbuster a few times recently and rented movies that have been sitting on the top of my queue for a month +. Got pissed a few weeks ago and actually deleted everything that was just "filler" leaving my top ten "long wait" list and they didn't send anything until I added more crap old movies/tv shows/documentaries/anime I really had no desire to watch right away. Thinking about trying blockbuster.com

 

[Dr_Cogent]

Netflix was great at first. Had a turnaround time of a couple days, got all the new releases on the tuesday they released. Now it's just awful as far as new releases are concerned. I've actually went to blockbuster a few times recently and rented movies that have been sitting on the top of my queue for a month +. Got pissed a few weeks ago and actually deleted everything that was just "filler" leaving my top ten "long wait" list and they didn't send anything until I added more crap old movies/tv shows/documentaries/anime I really had no desire to watch right away. Thinking about trying blockbuster.com

Hell, the movies I rent aren't even new releases. They probably just hate the fact that as soon as I get movies, I watch them and return them - so they are throttling me as well.

It makes me so damn angry every time I think about it.

 

[AniHawk]

We've had 40 Year Old Virgin on the queue since before it was out and we still have it listed as a long wait. Being throttled sucks. You'd think that you'd want to get movies to the people that rotate them out faster since you know they'll be back sooner, but .... meh

 

[Dr_Cogent]

Blockbuster claims they do not throttle

Also, they sent me an email saying they got back Secret Window from me. I sent that back months ago, but I am figuring they did this on purpose in order to get me back. In the email it said this:

Coming soon... a brand-new BLOCKBUSTER Online. We're adding great new features like enhanced search, drag and drop selection, personalized recommendations and an enhanced star rating system that lets you be the critic. Look for more information - -- and your sneak preview invitation! - - later this Spring.

I'll be checking them out in the spring then.

Competition FTW!

Throttling FTL!

 

[Teddman]

If you want a new release you think is going to be popular, send a movie back the Friday or Saturday before the DVD comes out. Make sure the new release is #1 in your queue and Netflix will actually send it out to you on MONDAY, when they get your latest return. This almost always works.

That way you get it on Tuesday right on the release date. With popular movies, if you don't do this you may have to wait a month or more.

 

[Dr_Cogent]

Also, I think anyone who is a Netflix sub should contact them through their web page and tell them that you are not happy with throttling. The more negative feedback they get, the better.

 

[Saurus]

If you want a new release you think is going to be popular, send a movie back the Friday or Saturday before the DVD comes out. Make sure the new release is #1 in your queue and Netflix will actually send it out to you on MONDAY, when they get your latest return. This almost always works.

'In determining priority for shipping and inventory allocation, we give priority to those members who receive the fewest DVDs through our service,'' Netflix's revised policy reads. It warns that heavy renters are more likely to have delays and less likely to get top choices.'
http://www.suntimes.com/output/movies/cst-nws-flix12.html

Doesn't really matter when you return them if you're classified as a "heavy renter".

 

[Flynn]

'In determining priority for shipping and inventory allocation, we give priority to those members who receive the fewest DVDs through our service,'' Netflix's revised policy reads. It warns that heavy renters are more likely to have delays and less likely to get top choices.'
http://www.suntimes.com/output/movies/cst-nws-flix12.html

Doesn't really matter when you return them if you're classified as a "heavy renter".

The idea that a business can deliver two kinds of service for the same price troubles me a little. I predict a sucessful class action suit and the unveiling of tiered pricing services.

 

[Dr_Cogent]

It's so fucking blatant, you can see it right here.

Two movies shipped today, but apparently the USPS is going to take their sweet ass time on John Q. WTF? Assholes!

 

[Wellington]

It's so fucking blatant, you can see it right here.

Two movies shipped today, but apparently the USPS is going to take their sweet ass time on John Q. WTF? Assholes!

Delivery Speed

We utilize a nationwide network of local distribution centers to send and receive DVDs you have selected to rent through the U.S. Postal Service. We have located these centers in such a manner as to provide fast and efficient delivery to our subscribers. Based on performance data from the U.S. Postal Service and our own analysis, we have determined that the large majority of our subscribers are able to receive their movies in about one business day following our shipment of the requested movie from their local distribution center. Please note that not all deliveries will be from your local distribution center. The delivery times you encounter will vary based on a number of factors (See "Allocation, Delivery and Return of Rented DVDs" below). We will send you an e-mail letting you know when we have received a returned movie, and we will also send you another e-mail letting you know when we have shipped your next DVD, including the anticipated time of delivery.

Relax. Though I am helping you fight the good fight by sending an email about throttling.

 

[Dr_Cogent]

Relax. Though I am helping you fight the good fight by sending an email about throttling.

Ah, interesting. I thought everything came from the Lansing, MI outlet that I am near.

Thanks for the heads up and for the good fight email.

 

[Wellington]

-----Original Message-----
From: wellington
Sent: Tuesday, March 07, 2006 4:18:25 PM
To: customerservice@netflix.com
Subject: Shipping and Receiving DVDs

Subject: I am afraid of throttling.
"In determining priority for shipping and inventory allocation, we give priority to those members who receive the fewest DVDs through our service. As a result, those subscribers who receive the most movies may experience that (i) the shipment of their next available DVD occurs at least one business day following return of their previously viewed movie, (ii) delivery takes longer, as the shipments may not be processed from their local distribution center and (iii) they receive movies lower in their queue more often than our other subscribers."

I just signed up for the service and in my trial period I would like to test the service and see how quickly/not quickly the thing works. That being the case, the first two or three movies I may return right away after I see them. Don't throttle me, I will be sure to pace myself once my subscription officially starts.

Dear Wellington,

Thanks for your message.

We appreciate you taking the time to provide your feedback and comments regarding our shipping process. By prioritizing in this way, we help assure a balanced experience for all our members. Please let us know if our company meets your needs while giving us a try!

If you have any further questions or concerns, please feel free to contact us.

Thanks,
Megan,
Netflix Customer Service .

:lol! Damn those slippery snakes!