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Bye bye Netflix

jonKranked

Detective Dookie
Nov 10, 2005
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some VERY good points, most of which hadn't crossed my mind - in bold for tl;dr

It's an obvious point, but it's the one that matters: DVDs are becoming obsolete. But there's no mass extinction event to point to; it's a lugubrious death, a slothlike shuffling off. Some people will be renting DVDs by mail for years and years after it makes any sense, just like some people still have Aol email accounts and buy full-size camcorders and watch Grey's Anatomy. So why not keep making money off those people for as long as you can?

Think of it like this: sometimes you need to amputate, and sometime's it's better to quarantine. The DVD industry has the sniffles now, and Netflix is putting it into a hyperbaric bubble before it devolves into something terminal—and brings down its strapping young streaming lad with it.

There are two main benefits to cordoning off the mail service in the Qwikster ghetto. First, it keeps streaming customers shielded from the inevitable DVD price increases that will come with fewer subscribers and ever-increasing postal rates. And—maybe more importantly—Netflix is able to limit the constant reminders of all the movies that you can't add to your Instant queue. Streaming customers won't be able to see DVD availabilities any more, which means you won't get that feeling that you're staring at an unattainable ocean of truffles and bonbons with nothing but a Werther's Original in your hand.

There's also this point raised by Bill Gurley today: Netflix has this whole time been paying studios for streaming rights based on its total number of streaming subscribers, including those with streaming + DVD plans that never watched a movie online. By partitioning streaming and mail-order, Netflix can hand studios a more accurate picture of how many people are downloading their content—which will hopefully mean more favorable studio deals, and more options for your queue.
http://gizmodo.com/5841675/why-netflix-just-cut-itself-in-half
 

dante

Unabomber
Feb 13, 2004
8,807
9
looking for classic NE singletrack
JK's article said:
Netflix has this whole time been paying studios for streaming rights based on its total number of streaming subscribers, including those with streaming + DVD plans that never watched a movie online. By partitioning streaming and mail-order, Netflix can hand studios a more accurate picture of how many people are downloading their content—which will hopefully mean more favorable studio deals, and more options for your queue.
They seriously couldn't have done that before? They have all of that information, and if they can't get a decent deal with a studio now, what makes anyone think that they'll be able to get that deal in the future? They know exactly who's watching what and how often. Just because subscribers had DVDs lumped into the service as well, that doesn't change the fact that Netflix knew that 147 people had streamed Switchblade Sisters (1975) and yet Netflix had to pay paying $xxxxxx/year for that right (guessing). If Netflix couldn't negotiate a better deal before, they're going to be just as screwed now.
 

jonKranked

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Nov 10, 2005
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They seriously couldn't have done that before? They have all of that information, and if they can't get a decent deal with a studio now, what makes anyone think that they'll be able to get that deal in the future? They know exactly who's watching what and how often. Just because subscribers had DVDs lumped into the service as well, that doesn't change the fact that Netflix knew that 147 people had streamed Switchblade Sisters (1975) and yet Netflix had to pay paying $xxxxxx/year for that right (guessing). If Netflix couldn't negotiate a better deal before, they're going to be just as screwed now.
the studios would argue that they still had access to the service, despite not actually using it. this way, that argument is null.
 

loco-gringo

Crusading Clamp Monkey
Sep 27, 2006
8,887
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Deep in the heart of TEXAS
Nice...so now I have two companies to do the same thing I was getting with one. Thanks for making life easier than it needs to be. :rolleyes:

When AT&T would separate mobile and home service and then merge, and then split, I finally got tired of separate billing on something that was already seamless and dumped them all together.

Once I'm done streaming "Flashpoint", Netflix can kiss my ass.

Life needn't be so complicated.
 

Sandwich

Pig my fish!
Staff member
May 23, 2002
22,002
7,243
borcester rhymes
now that we're buying a house, I watch a lot of HGTV. Why is it so canadian, eh? Everybody on that show is canadian, hey. They even have two canadian guys picking out america's next top handyman guy. I don't get it.
 

Silver

find me a tampon
Jul 20, 2002
10,840
1
Orange County, CA
If Netflix couldn't negotiate a better deal before, they're going to be just as screwed now.
This.

This is a company basically build on IT, and they can't pull out the data they need without splitting the company up? That's total bull****. They are either incompetent or lying their asses off while they try to cash out.
 

jonKranked

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Nov 10, 2005
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This.

This is a company basically build on IT, and they can't pull out the data they need without splitting the company up? That's total bull****. They are either incompetent or lying their asses off while they try to cash out.
did you not see my previous post on this? it has nothing to do with their ability to pull and present the data. It's because the studios (content providers) don't care about how many people USE the service, but about how many people have ACCESS to the service (regardless of whether or not they're using it).
 

IH8Rice

I'm Mr. Negative! I Fail!
Aug 2, 2008
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494
Im over here now
did you not see my previous post on this? it has nothing to do with their ability to pull and present the data. It's because the studios (content providers) don't care about how many people USE the service, but about how many people have ACCESS to the service (regardless of whether or not they're using it).
yep. and with this info, theyll have better info to negotiate with
 

Silver

find me a tampon
Jul 20, 2002
10,840
1
Orange County, CA
did you not see my previous post on this? it has nothing to do with their ability to pull and present the data. It's because the studios (content providers) don't care about how many people USE the service, but about how many people have ACCESS to the service (regardless of whether or not they're using it).
Sure, but that's the inability of Netflix to negotiate with an obstinate partner, like Dante pointed out.

That's not going to change, the studios are going to come up with some other reason to not license. Sony will probably come out with their own proprietary streaming piece of **** that only works on the PS3.
 

jonKranked

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Nov 10, 2005
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Sure, but that's the inability of Netflix to negotiate with an obstinate partner, like Dante pointed out.
all things considered, they do pretty well against the studios given they carved the path for this business model.


That's not going to change, the studios are going to come up with some other reason to not license. Sony will probably come out with their own proprietary streaming piece of **** that only works on the PS3.
so you have used qrocity
 

Silver

find me a tampon
Jul 20, 2002
10,840
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Orange County, CA
so you have used qrocity
No, I'm just familiar with Sony's horrific business ideas.

20-25 years ago, Sony was THE solid consumer electronics brand. If you wanted fancy and still Japanese, you went Denon or Pioneer, but Sony was like Toyota. Every house had something Sony, almost like Apple now.

The big problem with Sony vs. Apple is that when Sony does something proprietary, it sucks donkey balls from a user perspective...
 

jonKranked

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Nov 10, 2005
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No, I'm just familiar with Sony's horrific business ideas.

20-25 years ago, Sony was THE solid consumer electronics brand. If you wanted fancy and still Japanese, you went Denon or Pioneer, but Sony was like Toyota. Every house had something Sony, almost like Apple now.

The big problem with Sony vs. Apple is that when Sony does something proprietary, it sucks donkey balls from a user perspective...
memory stick anyone?


all things aside, i really do love my PS3.
 

Silver

find me a tampon
Jul 20, 2002
10,840
1
Orange County, CA
MS didnt stink. it was just another memory format that didnt survive. CF is going that way now too
Yeah, but CF had a really good run. MS, not so much.

Actually, now that I think about it, Olympus can lick my taint with their stupid xD cards too. Thank God they didn't saddle their new (and sweet) little mirrorless ones with that.
 

IH8Rice

I'm Mr. Negative! I Fail!
Aug 2, 2008
24,524
494
Im over here now
It was proprietary but it offered no advantage to the end-user. You can't do much worse than that.
its as proprietary as SD, XD or CF is/was...it was just only used by Sony and one other comapny IIRC. you were still able to put any type of file on it just like the other cards.
 
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OGRipper

back alley ripper
Feb 3, 2004
10,744
1,255
NORCAL is the hizzle
I terminated my account a while back, just got a nice note (i.e., mass email) from the CEO, and sent this reply:

Dear Reed:

Thanks for your kind note, but you've lost me as a customer. You may see your new approach as a beneficial change for the future. What your (former) customer sees is a price increase, more complication, and less integration.

I am one of those people who kept their account and paid automatically every month even though I sometimes had nothing in my line up and no movies at home. For $10 a month I was willing to let it be even though I knew that from time to time I was wasting a bit of cash. However, the news of your misguided approach was enough to convince my procrastinating butt to terminate my account. So, not only are you not getting your increased rates from me, you are not even getting the $10 a month that was apparently not enough for you and your greedy colleagues.

Best wishes!
 

jonKranked

Detective Dookie
Nov 10, 2005
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I terminated my account a while back, just got a nice note (i.e., mass email) from the CEO, and sent this reply:

Dear Reed:

Thanks for your kind note, but you've lost me as a customer. You may see your new approach as a beneficial change for the future. What your (former) customer sees is a price increase, more complication, and less integration.

I am one of those people who kept their account and paid automatically every month even though I sometimes had nothing in my line up and no movieIs at home. For $10 a month I was willing to let it be even though I knew that from time to time I was wasting a bit of cash. However, the news of your misguided approach was enough to convince my procrastinating butt to terminate my account. So, not only are you not getting your increased rates from me, you are not even getting the $10 a month that was apparently not enough for you and your greedy colleagues.

Best wishes!
Greedy colleagues? :rofl: try greedy studios chief
 

Bicyclist

Turbo Monkey
Apr 4, 2004
10,152
2
SB
I terminated my account a while back, just got a nice note (i.e., mass email) from the CEO, and sent this reply:

Dear Reed:

Thanks for your kind note, but you've lost me as a customer. You may see your new approach as a beneficial change for the future. What your (former) customer sees is a price increase, more complication, and less integration.

I am one of those people who kept their account and paid automatically every month even though I sometimes had nothing in my line up and no movies at home. For $10 a month I was willing to let it be even though I knew that from time to time I was wasting a bit of cash. However, the news of your misguided approach was enough to convince my procrastinating butt to terminate my account. So, not only are you not getting your increased rates from me, you are not even getting the $10 a month that was apparently not enough for you and your greedy colleagues.

Best wishes!
Reply to all?
 

-BB-

I broke all the rules, but somehow still became mo
Sep 6, 2001
4,254
28
Livin it up in the O.C.
Glad this thread came up. I went on and noticed that my rates are going up in a few days. Lowered my pkg from 3 disks to 2 disks. I'll now be getting the 2 for about the same price I used to get three.

Silly... It isn't like I'm a big movie watcher, so I'll still have the same number of movies sent in per month.
 

dante

Unabomber
Feb 13, 2004
8,807
9
looking for classic NE singletrack
So you buying NFLX? It could be considered quite cheap if you're predicting explosive growth... ;)

edit: From the smartmoney article I linked to earlier (although that was when the stock price was ~209, as opposed to 169 where it is now):
if i was going to buy, now would be the time. furthermore, they're also starting to produce their own content that will only be available on streaming.
If it was a deal at 169, is it even *more* of a deal at 122? :)