Netflix Regains 600,000 U.S. Subscribers
nytimes.com
nytimes.com
> "You are never as smart or dumb as they say," Hastings said in a Wednesday interview.
This is exactly why I bought. Everybody and their mother was jumping all over themselves to talk about how stupid Netflix was. I figured the stock was pummeled about as low as it could go because at the end of the day Netflix has amazing infrastructure and product assets (I say this as a direct competitor). It's certainly the case that they are being squeezed mercilessly between price expectations of customers and profit expectations of the content cartels, but at the same time, Internet streaming is an irresistible force and no one is positioned better to capitalize on it than Netflix.
I find that amazing, because it means Netflix has the same distribution power as a major cable TV provider.
I was looking into this just last night, actually. I'm not with Comcast, I'm not even American actually, but I wanted to add a couple channels to our account and I went looking at pricing. For the basic crappy channels - the first 20 or so, I think - I was $25. Our roommate, by which I mean by would-be brother-in-law, controls the account so I don't know how much it all comes to, but looking at the different packages, I'd say it's got to be at least $80-100, not factoring in any discounts for bundling with internet and all that.
Not entirely true. I'm part of a growing number of people that have cable tv who don't actually use cable tv. Let me explain. Once I explained to Comcast that my household no longer watches cable tv and that I'd rather spend the money I used to spend on cable tv for faster internet (up to 50 mbs). They in turn explained to me that if I have super basic cable plan for $9.99 / month, they would give me a $15 discount off my entire monthly bill. So for a $5 monthly discount, Comcast gets to keep me as a ghost cable tv subscriber.
You're paying negative $5 for cable, but how many other people are doing that. I don't know the going rate for Comcast cable, so I'll use the $25 basic service fee from Eastlink in Canada (my service) as the exemplar.
Assume there are only two possible monthly payments for Comcast. You can get the basic service for $25 or you can get the "they quit the service but we're keeping them on the books" service for $-5. Given these prices, you would need to have 3.4 subscribers at the latter price for every one subscriber at the former price before Comcast and Netflix would be making equal money off subscriptions alone. I seriously doubt 77% of Comcast subscribers are ghosts like you, so I stand by my argument that Netflix is massively financially outgunned by Comcast.
I don't disagree but time is not on Comcast's side. Anyone who went to college in the 90s and younger is a huge threat to cable tv.
If netflix cost exactly the same thing as cable I would happily pay because they distributes content in a way that is convenient for me and they don't run commercials to subsidize their income at the cost of my enjoyment.
But their catalog will inevitably expand.
It's incredible how one comes to love something that works so consistently and dependably.
I wish it let you split out recommendations based on users, with the option of "recommended for the whole account." I like Sci-Fi, and I've watched a fair amount of it on my Netflix account, including 10/11 Star Trek movies, but the last time I went into the Sci-Fi section, it was recommending me random kids shows and things I'd clearly not like.
This is because my girlfriend uses it a lot and has watched a lot of older, especially teen (nostalgia), shows. To quote from A Christmas Story, Netflix "labor[s] under the delusion that I [am] not only perpetually 4 years old, but also a girl."
Not knocking their engine, just a random anecdote.
Didn't Netflix run a competition once for people to come up with a better recommendation engine a while ago? Maybe that's why it's so good. Crowdsourcing.
The same thing goes for the "recently watched" list on Watch Instantly, which mixes together shows watched by any user on any device.
There's a British movie on Netflix, at least in Canada, called Cashback. It was a really decent movie, but it was really poorly marketed. The cover art is a woman frozen in a state of undress (with the title obscuring her bare breasts), and the description of the plot talked of a bored employee at a grocery store with the ability to freeze time who used the frozen time to undress customers and sketch them nude.
I was curious, as many men would be, but I didn't want to watch it because I didn't really want that to be the first thing on screen in the "recently watched" list when my girlfriend turned on Netflix.
In fact, I only ever watched it because Netflix later recommended it to me as "mind bending", which seemed like an odd description of the boob-filled teenage sex romp it seemed to be. I looked it up on Amazon and discovered the real plot, and decided to watch it anyway.
The frozen time nude artistry was mostly contained to a single throwaway scene (the time freezing was also initially presented as a time-passing fantasy rather than a real ability, though the film does play fast and loose with that line as the movie progresses), but it still made me hesitate because of the "recently watched" list.
I have no idea how I'll get away with watching Barbarella.
They advise against sharing accounts. I understand this is not really enforcable and no one really cares, but it's the only way the recommendation engine works well.
If they tried to suggest it, I'd think they're off their collective rockers.
Now, I understand that Netflix would prefer that everyone have their own separate Netflix account, and that adding this feature might be looked down on as promoting the use of a single account for multiple people, but that doesn't make it a bad feature.
They need to understand that most people don't see the need for having multiple accounts. How often do you really find that two people want to watch two movies at once? When that does occur, how often is it such a high priority that nether party is willing to wait until the other is done to watch their movie?
Adding accounts results in significantly diminished returns right away. The second account is only of use when two people want to watch something at once, which I've never found to be a serious problem. Adding a third or fourth account is absolutely ridiculous[1].
[1] It's ridiculous now, but if Netflix ever becomes a serious provider of new TV, supplanting the current cable TV structure with an a la carte, on demand model, then I'd gladly maintain multiple accounts. When that day comes, they could allow roaming profiles, allowing a new account to start using the viewing history/recommendations of a named profile on another account.
> Q : Can I watch movies instantly on more than one PC or Netflix-ready device?
> A : Your account can have up to six unique authorized devices activated and associated with it at any given time, including personal computers and Netflix-ready devices; however, you may only watch on one device at a time.
I've heard that there's nothing stopping you from starting a second stream, but that it can cut off at any time when the system notices, and that they're enforcing it more now than they used to. YMMV in the USA or UK.
While you might find it user hostile, I, personally, don't see anything really wrong with only allowing one stream per account. I doubt you can't understand why it's being done either.
You have to assume that most people watch a lot more movies via streaming than they did with DVD-Only, both because you don't have the lag time between sending movies back and getting new ones (you just choose a movie and watch it), and because you can't watch a movie then delay the next one by procrastinating/forgetting to send it back (you finish one movie and the next is instantly available without user action). Because of this, there are likely fewer ghost/inactive accounts silently collecting their monthly charge, and content producers probably demand additional funds using the additional viewings as a negotiating tool. Adding additional accounts per household both adds revenue, which is additional funding for content licenses and original productions, and drops the view/account metric, which couldn't hurt when negotiating with content producers.
We never had a combined service in Canada. The only DVD-by-mail service I've heard of up here is Zip.ca. I looked into them recently and discovered they also have a streaming service now, but I'm much more interested in the service of theirs that was impetus for that search, which was their "redbox"-like DVD/BluRay kiosk I just found at my local grocery store.
I've often heard people speak online about these kiosks, but there weren't any near my current apartment until recently (either that, or I've just never known it was there since it's on the opposite side of the store from the self-serve checkout machines). $1 per movie is a wonderful price point for new releases, though between Christmas present movies and Netflix I haven't really been inclined to use it yet.
Not that I have children, but this seems like there's got to be some sort of statistical indicator about this if they know how to look at it.
BTW, I have had no luck in talking my wife into dropping Directv, even with Netflix, Hulu+, and a good 7 screen movie theater near our house. Wish me luck :-)
I'd pay for double accounts, but Netflix apparently won't take my money.
But, alas, that's gone. Now Netflix thinks I'm fond of gritty survivalist Dora-The-Explorer romantic comedies featuring Barbie.
I never actually done this, but I see it all the time.