Netflix

[braumeister]

Are they short their own stock?

I think someone has figured it out!

 

[chinaco]

Netflix CEO Hastings in his blog yesterday here
To summarize

1) Sorry, I made a mistake. Please forgive me, it's my first.
2) We're gonna split in two businesses. One streaming, one dvd rental.
3) Dealing with two of us will be much better and easier for you the customer.

I don't buy it! I believe this is just the 2nd step in the execution of the plan. Too big of a move too quickly!

Step 1 - Get the billing separated and understand what it will look like (look before they leap).. then if it looks ok to do it now, announce the split.

They are trimming their business portfolio and getting rid of the less profitable (maybe today... definitely in the future) side of the business.

It seems that many TVs are built to support streaming.... not much different than cable ready TVs began being built years ago. With that platform and generation of younger people that want it... The writing is on the wall!

I think that DVDs for movies will go the way of 8-track tapes eventually. It may take another 10 years... but there is no doubt where it is headed... and it will be a drag on future performance and does not fit with the companies strategic vision... an internet streaming version of cable and satellite TV.

Apparently, from what I have read... the mail order business has the obvious overhead and will reduce the money available for the streaming side of the business (and it will only get worse).

I would expect the Qwickster to Quickly announce (pun intended) a price increase... back to the old levels! Well maybe not too quick... but within a year or so.

I would not be surprised if Netflix segments the streaming products also... and/or asks for a price increase (through some means).

 

[MichaelB]

Well, I became a Netflix customer in 1998 when they were still renting single dvds. When they introduced streaming I thought that added a lot to their offering. Now that they separate the two I see no reason to continue with a dvd rental. We watch few, have no need to see a dvd the moment it is released, and can easily follow T-Al's example and borrow the dvds in the local public library. So we just cancelled our mail rental subscription.

I felt there was lots of synergy between the mail dvd and streaming offerings and think it is a loss to separate them.

Saw this in my email today. Struck me as very strange. Why should I care that he 'made a mistake' if he isn't going to do anything for me (change the rates/conditions)?

Even worse, he seems to be saying the mistake was not what they did but that he didn't communicate it more effectively.

Maybe they fear the postal changes (rates, limited delivery days)

This has to be a key factor here.

 

[davemartin88]

Where we live, with our DSL internet service, the streaming option is just usable. Given this, we like the 2 DVD at a time service but won't be surprised if this option disappears in the not too distant future. Hoping the Qwikster continues to work out for us.

 

[pimpmyretirement]

I bet they sell the DVD business for the money needed to make their streaming content awesome, killing the DVD business in the process...

They need to figure out how to address the ISP bandwidth cap problem as well. More capital could certainly help that - maybe buying up some dark fiber?

The recent moves have been too boneheaded to be anything but the start of a brilliant strategy.

 

[harley]

I don't think bandwidth will be the problem, at least for a while. I think content (lack of) will keep streaming from being a giant killer for the dvd business. Currently the majority of the streamed offerings are crap, and I have read an awful lot about the content owners not wanting to give that much flexibility to customers. At least until they can figure out a more profitable way to do it. They like the pay-per-view concept a lot. Watch as much as you want for a single cost? Not so much.

 

[JOHNNIE36]

Read in the local paper this morning that Verizon will launch a movie streaming option of their own. Everything in our house is Verizon FIOS and with the Blue Ray player and Verizon streaming, I think we have all the bases covered. All this is a boon to DW. For the most part, I hate movies because I don't have the patience to sit still that long. Has to be something special to hold me that long. I mentioned some time ago, the last movie I saw at a theater was Titantic.

 

[W2R]

Read in the local paper this morning that Verizon will launch a movie streaming option of their own. Everything in our house is Verizon FIOS and with the Blue Ray player and Verizon streaming, I think we have all the bases covered. All this is a boon to DW. For the most part, I hate movies because I don't have the patience to sit still that long. Has to be something special to hold me that long. I mentioned some time ago, the last movie I saw at a theater was Titantic.

(emphasis mine) Johnnie, I am exactly the same way! I thought I was the only one who doesn't care to watch movies. I have the HBO and Showtime channels, and I haven't watched a single movie on either. I planned to join Netflix when I retired, until I realized that I just don't have the patience for movies. I have a DVD player and haven't even bothered to hook it up to the TV.

I do watch TV, but shorter shows for the most part.

 

[travelover]

............ the last movie I saw at a theater was Titantic.

Yea, well at least there was the suspense of wondering if the ship would sink.........

 

[REWahoo]

I thought I was the only one who doesn't care to watch movies. I have the HBO and Showtime channels, and I haven't watched a single movie on either. I planned to join Netflix when I retired, until I realized that I just don't have the patience for movies. I have a DVD player and haven't even bothered to hook it up to the TV.

I do watch TV, but shorter shows for the most part.

Sounds like you need to subscribe to the Short Attention Span Network...

 

[audreyh1]

Sounds like you need to subscribe to the Short Attention Span Network...

I confess, I have the same problem. I simply can't sit through something that lasts longer than 1 hour, and doesn't have "breaks" (i.e. commercials I can mute and ignore). I have trouble getting through my owned DVDs more than 1/2 hour at a time... Pretty bad!

I never subscribed to Netflix as it didn't match my lifestyle, so this is a fascinating thread to read. I have enjoyed streaming stuff though - I watch a lot of YouTube videos on my iPad or on TV via AppleTV.

Audrey

 

[ERD50]

For the most part, I hate movies because I don't have the patience to sit still that long.

Johnnie, I am exactly the same way!

I confess, I have the same problem. I simply can't sit through something that lasts longer than 1 hour, and doesn't have "breaks" (i.e. commercials I can mute and ignore). I have trouble getting through my owned DVDs more than 1/2 hour at a time... Pretty bad!

Audrey

I guess I'm not alone! Maybe we need a poll.


OTOH, if something captures my interest, I can easily sit through a long program. But I seldom decide that I want to sit down for 90 minutes to watch something. I'm the same way with books - magazine articles, short stories are great. And I sometimes 'get into' a long book, but it isn't something I do very often.

-ERD50

 

[W2R]

Sounds like you need to subscribe to the Short Attention Span Network...

That's the one for me. But I can play video games for hours. I guess I just find most movies to be boring and watching them is so very passive.

 

[Coolius]

I have been getting by with those $1 or $3 nightly rentals from the red kiosks at WalMart. Also go to the library from time to time to see what's new.

Works for us, since both of us do not watch many movies - maybe one or two a month, tops.

Sometimes, Craigslist and garage sales will have older DVDs for $1-$2, and could represent a nice value. I picked up a DVD of I, Robot just the other day for $1. have not watch it yet.

 

[audreyh1]

Yes, I think it's the passivity of just sitting and watching that gets to me, even if the content is top notch. And most content is NOT top notch.

I watch mostly Spanish language content now, and I think I prefer it simply because of the intellectual challenge/stimulation of comprehension in a 2nd language.

Audrey

 

[GregLee]

Sounds like you need to subscribe to the Short Attention Span Network...

Yes, so do I. However, it helps to have a DVR, since watching HBO over DirecTV, when my mind begins to wander, I can just press the Pause button on my remote, and go do something else for a while, or watch something else, then return and press Play to continue. DVRs are great for flibbertigibbets. I don't have enough bandwidth to stream good quality picture and sound, and don't have the incentive to buy more bandwidth, since I don't care to be chained to my TV screen, anyway. There's a bit of a war going on between TV watchers, on the one hand, and advertisers and content providers, on the other, who get more and more nervous as consumers gain more control over the programming they watch.

 

[pimpmyretirement]

I typically use netflix to stop me from getting distracted during a mundane computer task or while exercising. The content doesn't need to be great for that, just good enough. I've streamed every epidsode of Ice Road Truckers they offer, for instance.

 

[FIREd]

I don't have a short attention span, I am a multitasker!

Unless it's really good, I rarely devote my full attention to a movie.

 

[arebelspy]

I'm with the short attention span people, but my wife is not. She likes the long movies and such.

I thought it was more typical of my generation (younger than most here) to have the short attention span, but seems it's more common than I thought.

 

[tangomonster]

Yes, I think it's the passivity of just sitting and watching that gets to me, even if the content is top notch. And most content is NOT top notch.

I watch mostly Spanish language content now, and I think I prefer it simply because of the intellectual challenge/stimulation of comprehension in a 2nd language.

Audrey

This was so enjoyable for me to read because I truly thought I was the only one who wanted to do more than just stare at a screen (phone/computer/TV/movie) in my leisure time! Almost anything to me is more enjoyable than just sitting and vegging out. The computer doesn't seem as passive since I am actively surfing and writing. I just can't believe that anyone will say on their deathbed that they regret that they didn't watch more TV or even movies! That said, I must admit that I am a little jealous of people who are so easily entertained when I have to work harder to find interesting stuff to do/learn, etc.

 

[Chuckanut]

I will show Netflix what I think of them!

I will cancel my account which costs me a whopping $22 a month. Then I will start renting DVD's for a box at the local store. That will cost me about $8 a month. And the cost of gas to drive back and forth to the store about $4 a month. And my time, of course, which has no value - $0 month. Then, I will subscribe to another Internet streaming service. Actually 2 since no other single service can match what Netflix offers. That will be another $15 a month. So for $27 dollar a month and several hours a month of my valueless time, I will teach Netflix a lesson!!

 

[Focus]

So for $27 dollar a month and several hours a month of my valueless time, I will teach Netflix a lesson!!

Nice try. I just joined Redbox. It's on my way to a daily stop, so there's no extra gas or time involved. $1 a pop ($1.50 for Blu-rays), and it fulfills our wish to see the new movie releases that are not available via Netflix streaming. (What's more, Redbox gave me a free rental after my first one, and by signing up for text alerts I'll be getting a free rental monthly.)

And, in fact, Netflix has been taught a lesson by the astronomical number of cancellations and the resulting lower stock price. CEO Reed Hastings: "We've hurt our hard-earned reputation and stalled our domestic growth .... Our primary issue is many of our long-term members felt shocked by the pricing changes, and more of them have expressed that by canceling Netflix than we expected."

I was a big Netflix fan for years. No more.

 

[Chuckanut]

Of course, I was not serious. Redbox is fine, but does not have many of the titles that I am interested in.

Netflix as a stock was not a great deal, IMHO. But, as a company it was and is a good deal for many of us. Often we must realize that a great company may not make a great stock and visa-versa.

 

[Texas Proud]

Of course, I was not serious. Redbox is fine, but does not have many of the titles that I am interested in.

Netflix as a stock was not a great deal, IMHO. But, as a company it was and is a good deal for many of us. Often we must realize that a great company may not make a great stock and visa-versa.

Actually your post does make sense for some... their streaming seems to be good and cheaper than others...

I do not use them, nor ever have... but I do have a friend who does and they seem to be pretty good... he only used streaming so to him nothing has changed...

 

[RunningBum]

Of course, I was not serious. Redbox is fine, but does not have many of the titles that I am interested in.

Netflix as a stock was not a great deal, IMHO. But, as a company it was and is a good deal for many of us. Often we must realize that a great company may not make a great stock and visa-versa.

And it was a good deal and no longer is for many of us.