The Long Tail blog has taken a close look at DVD rental patterns, and has some interesting information about the percentage of rentals from the top 100 at Blockbuster & Netflix.
Blockbuster: The top 100 titles account for 69.4% of sales. Netflix: The top 100 titles account for 38.8% of sales.
Which is just what we would expect. Netflix's demand curve really is much less hit-centric than Blockbuster's. The top 100, which are the majority of sales offline, are the minority of sales online. Which is exactly what Long Tail economics would predict. Phew.
Let the throttling complaints begin!
It's been my experience that I do rent more movies out of the top 100 since I started NetFlix. First, I can find them. Second, they find some for me (I do occasionally rent from their recommendations). Third, they show me information on what my friends are watching and how they've rated movies. I like my friends, they often have good taste. There's lots of other factors too, but I'm sure you could use your imagination.
Add it all up and it's a long tail indeed. I would be interested in seeing if there is a similar discrepancy between BB B&M and BB Online, or if people renting from BB Online are renting mostly top 100 titles as well.
Posted by: danb | April 21, 2006 at 09:45 AM
Netflix's demand curve isn't less hit-centric. They just don't buy enough to meet demand. BBO does. So, with Netflix, you have throttling and new releases are reserved for trial, new, and light users. This isn't an advantage. It's a huge defect. BB get more copies of new releases, because those are what most people want. (Only a tiny percentage of Netflix and BBO members are cinephiles looking for Kurosawa or Bergman or Godard films. The rest want new release titles. And NF doesn't even deny the fact. In deed, they brag about it and try to brainwash people into thinking it's an advantage of their service. WRONG.
Good service means giving customers what they want. Bad service means trying to influence customers and brainwash them. Customers also want special edition movies, but Netflix refuses to get them as a rule. So much for customer satisfaction...
Posted by: NetflixShill | April 21, 2006 at 04:23 PM
> So much for customer satisfaction...
Certain people are immune to satisfaction.
Posted by: Aron | April 22, 2006 at 01:47 PM
NetflixShill derides the process of influencing and brainwashing movie customers. Yet a movie becomes a hit because the Hollywood film industry (not Netflix) devotes its money to brainwashing and influencing its cusomers. Consider how the DaVinci Code is currently being hyped prior to its May opening. Hollywood is surely to trying to guarantee that this movie will become a "hit", first by filling theatres and then by renting the DVD.
Posted by: Flushed | April 24, 2006 at 09:50 AM
It seems unlikely that such a large discrepancy in the renting behavior of Netflix and Blockbuster users can be accounted for simply by throttling and the liquidity of new releases.
It's safe to assume that the Blockbuster Online user is more likely to have been a recent in-store renter - many of whom make selections solely within the New Release section that dominates the layout of the store.
The Netflix user, who've been renting online for a longer period of time, is more likely to have a deeper interest in building a larger queue of a greater mix of titles.
Posted by: DH_Peerflix | April 24, 2006 at 03:23 PM
Or of joining NetFlix in the first place because they want something that stores don't offer.
Posted by: gir | April 24, 2006 at 04:20 PM