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February 13, 2006

Time for Netflix to axe ‘unlimited’ from vocabulary

customer adventures, movies — by TDavid @ 1:40 pm PST

The last few days this blog has been feeling the aftershocks from this slashdot article and this MSNBC article. As you’ll note, neither of these stories or a recent CNN article on the same subject actually link to this blog, so where is the traffic coming from?

To piggyback on the last entry, this isn’t necessarily a complaint on my part but rather a curiosity in what happens when mainstream media writes a story that interests their audience and leaves them wanting more of the man/woman on the street. Seems like a clear sign that people are using the web to seek out additional sources on subjects. This is the 2006 media reality where even if you aren’t referenced or linked by a mainstream publication you can still be found. Hopefully. Maybe.

The scenario normally is easy to sleuth. If you get slashdotted or digged or another site links you then a line in the referrer stats shows up with a big number next to it. Once we had a German newspaper prominently link a story here and the stats ballooned for the period the link was displayed. This traffic, unfortunately, tends to be very transitory. They come for the story they were interested and they rarely stay. This recent traffic surge, however, has been going on for a few days now and is holding longer than normal and is generating comments on this blog entry from June 26, 2005: Netflix Throttling?

In retrospect, my post itself is pretty weak, basically me just saying: hmm, I hadn’t yet experienced any throttling problems and wondered who else had? As it turns out, this is a really sensitive tooth with both new and seasoned Netflix customers and a lot of people had. At first there there were a couple links and a few comments, but nothing really significant started happening until recently, pretty much after the stories referenced above jammed a rusty knife in an open wound.

I’m not a Netflix customer any more, and it has nothing to do with this alleged throttling issues. Actually, I had the opposite problem of what Netflix customers are complaining about: we didn’t watch enough movies every month. We were the type of customer that Netflix likes. The slow acting movie watching kind who sit on a couple movies for an entire month and barely rack up any postage costs.

Since the news put the light back on Netflix comments have been pouring in, most of them legitimate from users all over complaining about Netflix and these alleged throttling activities. So many comments in fact that this post is well on its way to being the most popular commented thread on this blog ever. Read some of the comments in the Hmm post and you will see exactly what I’m talking about.

Netflix PR, why aren’t you in the trenches of this post commenting on the situation? These are your customers. They are upset and want — no, demand — some answers. Or is it that you can’t? Shouldn’t somebody from Netflix at least show up and say: This is ___ from Netflix and we cannot comment on this issue publically because of pending litigation?

Since there is comment moderation in place for new commenters I’m seeing these comments and they are not spam. Could this be the actions of rival PR agencies for Netflix competitors or are there really that many pissed off Netflix customers? The vast majority of them don’t contain any links in either the body or signature space and though I haven’t checked the IPs I doubt it’s the work of one person/organization using a bunch of assumed names. However, I suppose with a proxy server and some zombie machines it is possible. I should probably run some traces on the IPs and update this post when I get more time.

The blog entry for here is listed as #2-3 on Google: netflix throttling but that is sending about 50-100 hits a day, not exactly on the scale of the activity we’re actually seeing to that specific post. I also found it interesting that the Hmm blog post was above Slashdot and MSNBC, at least at the time of this writing but probably will be moved down now that I’ve linked to them and they didn’t link here.

These customers aren’t just leaving one and two sentence ‘Netflix sucks’ quips, they are going on and on and on. Also, it’s one thing to stop by and visit, but it’s quite another to run out a couple paragraphs worth of comment space. That’s expending time and energy. Care and concern. Customer dissatisfaction.

Now I’m curious if something else beyond these articles have happened recently to draw the return of the major media focus? I realize Netflix is in the midst of a class action lawsuit. Their use of the word “unlimited” rentals is definitely vexing. The restaurant business I once worked for had a buffet that was believed to be “all you can eat” but we were very careful not to actually use those words. I’m pretty sure the advertising never used that either. Some customers took those words very literally and if most people ate nothing but the big ticket items (shrimp, roast beef, etc) then this would definitely create profitability issues.

The same is true if most Netflix customers watched the movies the same day they received them and returned them the next day. If there were 3 movies and they returned 3, then had 2-3 days of mail back and forth time, it’s possible to watch 6 a week or 24 movies a month. That’s a whole lot of postage — if it actually worked that way — but some customers are alleging that this isn’t the case. They are saying processing delays happen around 11 rentals a month.

Beyond the pleasant traffic surge which I hope sticks around awhile, I don’t have any skin in this game, but I’m definitely curious as to what this means for Netflix and what they are doing about it. Have they removed the “unlimited” rentals stuff from their advertising? Will they be doing so soon? Will this be a crushing blow for Netflix and services like theirs? Maybe they can redefine themselves — and save the postage expenses and hassles — as a downloadable DVD service similar to what Vongo is trying to do?

Did this post make you go hmm?

F = please no more posts like thisD = not among your best stuffC = average postB = good post, I liked itA = great post, please create more like this (Hmm, no ratings yet)

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RSS Feed comments for this post 3 Comments »

  1. I appreciate this article and it’s deliberative tone. It’s astounding that Netflix has done so little to dispell the fury. Clearly they misled their subscriber base, their potential subscribers, and their competitors (though their competitors must have been aware that a throttle was required for profitablity).

    That’s enough to irk anyone. But what irks me a great deal more is that a whole lot of people cry foul when a business they give money to fouls its legalese and yet, these same people largely clam up and make excuses in the face of their government’s much broader misrepresentations. The government is a sort of organization that we all as citizens subscriber to. Why do we not hold our executives and representatives to this same standard of truth and accuracy?

    Comment by John Flournoy — February 14, 2006 @ 2:10 am PST

  2. It is good to see folks actively talking about NF.
    I appreciated seeing the article, but firmly believe that
    all the suit and publicity does nothing to change NF at all.

    I have used netflix on and off for several years now, and to
    be perfectly clear and utterly honest - though I am still a
    user - I utterly despise netflix.

    Then why do I keep using/paying them ?

    Sadly, there is no better alternative that I can find.
    I tried blockbuster - and compared to them NF is speedy and
    dependable - BB video rental service is bad beyond belief !!

    I also tried CafeDVD - and they are nice folks - but sadly
    they have only one shipping location on the opposite coast,
    and their selection is very limited - so using their service
    isn’t really that economical or desirable for me.

    I considered Intelliflix - but their selection is even
    smaller - so who cares if they are cheap ??

    Peerflix is a good enough idea, but I want to rent, not own !

    My theory:
    In keeping with the theme of corporate callousness and control,
    my belief is that nf has a hush-hush department that has a
    name like the ‘hate and spite department’.

    It probably works like this…keep in mind the point idea is
    like negative numbers !

    If you report late shipments, the system starts a H&S entry
    for your username….then:

    If you email them about things being wrong or too slow, the
    system assigns you a number of points based upon how many
    emails you have sent - the more emails, the higher the points.
    (maybe when they get really good at this they will also count
    the number of letters in ALL CAPS and !!!!’s too)

    If you call them for any reason, after they keep you on hold
    a while, the poor disinterested, underpaid staffer you speak
    with has instructions that the worse your complaint is, or
    the angrier you are - the more you are penalized.
    At the least, you get a batch of points - at the most your
    account is immediately flagged and everything stops !

    No matter which thing is in process, eventually your point
    count will get to the ‘flagged’ level and it all stops.

    Paying customers are flagged as often as needed to get them
    to either stop complaining - or to quit and bring their
    nasty selves over to blockbuster so nf can stay just as foul
    as ever !!

    At any event - NOTHING a paying customer can do is allowed to
    improve their service because nf operates exclusively on an
    operating plan of negative feedback - the more we bitch, the
    worse our service gets - and it is only good for the 1st month
    to get you hooked, no matter what you do !!

    Enjoy your DVDs !

    Comment by mark — March 1, 2006 @ 9:06 pm PST

  3. […] In the past, I’ve hypothesized that the DVD rental market would fragment into two pieces. The first would be people like myself who really want to watch unlimited longtail archived content and who were willing to give up access to new releases and spur of the moment rentals, in exchange for the luxury of not having to return a DVD to the video store. The second piece of this market will go to the video stores and more importantly the DVD kiosks which can provide consumers with instant gratification, if they don’t mind the limited selection and having to make a second trip back to return the DVD. Because of the vast differences between the rental styles, I didn’t feel like Netflix really had much to worry about from the DVD kiosks, but overnight everything has changed. […]

    Pingback by Davis Freeberg’s Digital Connection » Blog Archive » DVDExpress Revolutionizes The DVD Rental Industry Overnight — October 4, 2006 @ 11:01 pm PST


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