June 09, 2003

The problem with Netflix

Netflix
As I am an obsessive movie fan, and have no tolerance for Blockbuster, I am naturally a subscriber to Netflix. By and large I'm very pleased with the service, but the fact of the matter is that their site is really poorly structured, and desperately needs an overhaul.

Case in point: I just spent far too long trying to find Die Another Day so I could add it to my queue. If you know the name of the movie you're looking for it's quite easy, but in this case I was drawing a blank, since let's face it -- all those Bond names run together after a while. So I did a search for "007" and came up with squat. Same with "Bond". So I figured I'd check their "Netflix 100" list of most rented movies, and it was nowhere to be found, as apparently they only refresh this list twice a month. Eventually I found what I was looking for by consulting the IMDB, which pulls up the last few Bond flicks when using "bond" as a search term. You have to wonder what kind of database Netflix is running that a simple "most popular titles" list can only be rendered semi-monthly.

But I have other problems with their site as well...their "collections" lists that are supposed to provide movie suggestions based on single themes, often have a totally random collection of movies. Take their "70's Cinema" list for example. Now, when I hear that I expect to see movies from major directors of the era, like Coppola, Scorscese, Altman and so on. And there are some of those movies in there. But there's also stuff like Logan's Run and Piranha, which may have been released in the 70's, but really shouldn't be on that list. Or at least, if you are going to put them on the list, remember to put The Godfather in there as well. Having Frogs but no Godfather is a serious oversight.

Of course, I complain about these things, but considering how lousy the alternative is, I won't be dropping Netflix any time soon.

Posted by jason at June 9, 2003 03:42 PM | TrackBack | Read more: Movies

Comments

I pull up Blockbuster.com in one window, Netflix in the other, and use Blockbuster to figure out what movies to add to my Netflix queue. It's annoying, but it works :)

Posted by: Stef at June 9, 2003 04:52 PM

Netflix delays updating their "popular" movies or their new releases because the demand for those movies would overwhelm supply. Therefore, it is definitely a good idea to use another service like Blockbuster.com to look up what the biggest new titles are.

Posted by: Knox Thomas at August 15, 2003 01:32 PM

I've loved Netflix for over a year. Until recently, I could drop a DVD in the mail and expect another in approximately one week. Now, it's taking them one week to receive and process my movie, then another 3 or more days to get it to me. One of the last movies I shipped back took a week to show up as received and now they're estimating I will receive the next six days later! I'm considering my options while I wait it out. I've notified customer service and they have not responded. If it doesn't get better, I may get Showtime, Cinemax, and HBO along with a Tivo unit so that I can watch movies anytime I want.

Posted by: Simon at November 11, 2003 09:14 AM

I recently joined Netflix and requested 3 movies on Friday. The was "sent" on the following Monday with expected delivery on Wednesday. I reported the 3 movies as missing on Friday only to have it arrived on Saturday. I watched the movies over the weekend and returned the Monday. Since these movies were reported missing Friday, Netflix automatically sent replacments on following Monday. THERE WAS NO WAY TO STOP DELIVERY. Anyways, the replacement came this Friday and I promptly returned them and cancel my account (before the 2 week trial was up).

TO MY SURPRISE, NETFLIX OFFER ME A 6 MONTHLY OFFER @ $14.95 DISCOUNTED PRICE. THEY MUST KNOW THEIR DELIVERY PROBLEM.

Posted by: MikeT at January 24, 2004 03:15 PM

Netflix is a tease! TV commerical mistated "in about 1 business day" you get the movie of your choice. It is more like 5 business days. There is no postmark on their envelope so whos to said when they actually sent it?

I suspect their big push is to get customers to update to the 8 movies subscriptions so.... they purposely slow down the deliveries.

Posted by: louie at January 27, 2004 12:52 PM

Just received Netflix Delivery Survey email.

After 3 postal days... my movie still has not arrive. SO.... they ought to revise their TV commericial "in about one business day, you'll receive 3 movies"

Yeah if we live in the perfect world and the U.S. post office make delivery as fast as FedEx overnight service. HAHAHA!

Posted by: Mike Taylor at February 21, 2004 11:50 PM

Return the 3 movies last weekend and still haven't got any movies this Friday. $%^&*(!!!!!

I did get an email with offer to upgrade to 8 movies. @#$%^&*(!!!!!!!

Posted by: Not a Fan at March 5, 2004 03:26 PM

I joined Netflix a few months ago. I was getting two day postal service from my main post office, but discovered that I received 1 day service at another post office. I could mail dvd's back on a Monday by noon and Tuesday at 6am netflix showed they had received them. New dvd's would be sent out the same day and I would have them in my mailbox by Wednesday at noon.

This was consistant for three months. Suddenly, I now have 5 to 7 day service. I suspect netflix is "controlling" the number of DVD's a person rents in a month. I read at some stock research site that netflix looses money due to postage costs if a customer rents more than 5 dvd's in a month. I was getting about 15, but that has stopped.

I'll send the three envelopes from 3 different post offices next time and see what happens. My gut feeling is we're being scammed though.

Posted by: Bogus at April 13, 2004 12:30 PM

Hey. I was also drawn to this website since I had a PROBLEM with NETFLIX.

I have been a good subscriber for a few years. But once in a while my DVDs would get lost in the mail and never arrive to me. I don't know if it is paranoia, but it seems my dvds would be lost whenever I have high rental acitivity. Lately I have been renting movies up to 17 dvds a month with the 5 out plan. I watch them as soon as I get them and return them the next day. and two dvds never arrived here even though they been sent almost two weeks ago....

I reported them as lost and they have put my account on hold because of my "record"

Is it just me here or does anyone else get the same thing?

Now here is a little something that I just can't figure out. Please bear with me.

As any good business man should know, that a good business should make at least 50% profit from total gross. So I am on the 5 dvd out plan which is 29.95. Lately I have been renting 17 dvds a month at the most.

Now let's see. Sending each DVD should cost about 49cents, which is first class rigid object standard rate. Going both ways it cost about a dollar. 17 dvds back and forth should cost about 17 dollars to send.

Now each envelope that the DVD comes in should cost a bit too. Since they are printed specifically for whatever address, they have adhesive, and an extra strip. Let's just say they cost is about 5 cents each. 17 dvds comes to 85 cents.

Now on their end, there is a person hired who takes out the DVD, inspects it and then scan the bar code and then put it on some kind of a computer system which puts it back in it's right place. Then the computer has to go pick up my next dvd and then put that in the mail also. People need to be paid to inspect and upkeep the system. Let's just say it cost about a dollar a month to do it for 17 DVDs going in and out.

Now there are extra costs such as upkeeping the website, obtaining these DVDs, cost to replace DVDs, cleaning DVDs. Cost to market the company and advertisments. Let's just really keep this low and say it cost about a dollar per month for one person.

Any thing else I am missing?

Now let's add this all up.

17.00 + 85 cents + 1.00 + 1.00 = about 20 bucks.

Wow, that profit margin looks to be just about 30 percent as opposed to 50 percent. And this is a very conservative estimate.

How could Netflix be making money then? Well simple. If you think about it, most people who rent dvds won't rent more than 6 to 7 dvds a month. And that's on a really good month. Renting 8 dvds means you have to watch 2 every week. For most families, that's practically a chore. It means you have to watch one during the weekday and then one on the weekend. Most people who get back from a full day of work or school does not want to sit down for two hours to watch a movie. More ever a movie that they were in the mood to see a week ago when they were on the website, but not right now. And it assumes that they immdeiately mail the DVD back as soon as they are done with it. If they slow down at all for a week or so, they'll get in just about 6 or 7 dvds.

This should cost no more than 8 dollars each month, and even less if they got out for the weekend, or just put off mailing them for a few days. Still leaving Netflix with a profit margin of about 12 bucks. That's over 50%

How do we combat people like me if you were netflix? Simple, when you hire programers, just tell them to add in a few simple lines of code for the computer systems. They can be even encrypted so no one can see them. All they have to do is slow down some dvds when people's rental activity spike into bad profit areas. Make a simple "mistake", and say you send out a dvd online but not actually send them out. This way, that person is dramatically slowed down. Their access to 5 could be down to 3, or 3 down to 2. And since most people don't really spike into bad profit areas, no one should complain. Everyone is happy except for me.

What netflix should do is drop advertising the fake "unlimited rentals" slogan or at least put fine prints on the bottom that says "only if you rent less than what we want you to rent!"

As for me? There is no alternative yet, so I am stuck with their monopoly and must now be careful with how much I actually rent each month.

Agree? Interested? let me know.

Xiao

Posted by: Xiao Niu at April 28, 2004 09:50 PM


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