Newsweek on the Netflix & Blockbuster Battle

Brian Braiker from Newsweek spoke with both sides of the Netflix & Blockbuster battle (and even a couple of Hacking Netflix readers) for the story: And the Envelope Goes to ...

“I used to be a Netflix fanatic,” says one Woodbridge, Ill., Blockbuster employee. “I could never get a new release. With Blockbuster I don’t have to wait four, five or six weeks for something I want to see now.” Still, others love Netflix for the convenience and their otherwise stellar customer service. “The interface is good, it’s easy to add things to the queue, easy to reorder things,” says Erica Klein of Minneapolis. “Every once in a blue moon I would go to a Blockbuster store—always an unpleasant experience.”

Joe Corey, a Raleigh, N.C., movie buff subscribes to both Netflix and Blockbuster. When he heard his Total Access services were being scaled back, he says it felt like “Blockbuster was telling me ‘please don’t stay a member'.” But he says he anticipated the de facto price hike, which is why he kept his pre-existing Netflix account. “In the nine months since I joined Total Access, over 200 titles have been mailed to me. That’s 200 titles that I returned to the store and got a freebie off of. It worked out to about 36 cents per DVD, which means they lost a fortune on me just on postage fees.”

Comments

One glaring error here:

"Until on-demand becomes more in-demand, though, Blockbuster has a few kinks to iron out. Movies streaming online at Movielink, for example, do not have all the special features that customers have come to expect with their DVDs. Those on Netflix's Watch Now do. "

Netflix' Watch Now service does NOT include DVD extras, just the movies. I don't know where he got that idea.

[frank]

One question I have is, what is the real definition of throttling? Newsweek says it is "delaying the shipment of in-demand titles to heavy renters".

I thought it was delaying shipment of ANYTHING to heavy renters. I see both BB and Netflix allocate new releases to lighter renters. I see only Netflix as slowing the shipment of anything. With BB I was always going to get SOMETHING. With NETFLIX I could wait a few days to get anything. Except I just rejoined so I am new- they are quick as a whip!

These are two different things and I think we may need a new word!

[gir]

I find it interesting that the definition of throttling has changed with time. First it was a secret cap on number of rentals. Then it was a secret 'delay my shipments' flag on your account. Now there doesn't seem to be a definition at all, just a synonym: delay = throttling.

[J]

The throttling on my end isn't too bad right now. But I'm a teacher and school has started back, so I only watch one movie in a week, if that. I just hate that throttling basically becomes about how many rents you have in a given month or two month period. Right now, Netflix is getting good business from me because I'm only getting maybe four movies a month tops on the two out plan. But during the summer, when I can watch more, I get throttled very heavily and it's frustrating. Seems to me they should take into account those seven or eight months when my rentals are very slow instead of punsihing me for the three or four that are higher than normal.

[Scribe1964]

"But during the summer, when I can watch more, I get throttled very heavily and it's frustrating."

Why not just change your plan during these periods? I change my plan all the time.

As for throttling, the only time I even suspected it was a few months back for about two weeks. I wasn't returning DVDs any faster, BUT I had gotten into the habit of rating them before they were returned. I believe this may have triggered the throttling. Then again, maybe they were short-handed at my local DC.

[calig]

"Why not just change your plan during these periods? I change my plan all the time."

I tried that once when I boosted myself from 3 out to 6 and I ended up getting almost the same amount at the end of the month.

It really didn't benefit me other then I had a few more at the house at once. But the wait slowed everything down to just a little over the 3 out was overall.

[Edward R Murrow]

The article is just a re-hash of what we all debate week after week here on this website.

Brian Braiker from Newsweek missed what would have been an even more interesting story and that would have been to interview this guy who worked for Netflix for 4 years, got fired and is losing his house:

"I've been fired! Netflix Red and Stainless Coffee Cup
Bobble head not included unless there's bid over $10000.

Winning bid: US $6.50

I was unceremoniously let go from my manager job of 4 years at Netflix and now my wife say's all my Netflix memorabilia must exit our house. Up for this auction is a red, black, and stainless beverage cup that I received at one of our annual manager meetings. ... It has never been used and is from a smoke free and a now up up for sale home. Only $357000 will get you a 3800sf, 5 bed, 3.5 bath, 3 car garage and 3/4 acre corner lot in exciting Olive Branch, MS."

You know the guy must have been doing something right if he was employed there for 4 years. Since it's a hot job market, anyone that's any good at what they do can steer clear of employers like Netflix.

You mean somebody got fired??!! From a company??!! That does business????!!!!! Stop the presses! Now THAT is some serious news.

[Edward R Murrow]

Yo, man-up and at least sign your correspondence. Your lip gloss is poppin'.

[corey3rd]

The manager guy who got fired at NF wasn't in a creative role. his jobs is to make sure the machine works at a certain level. The DVDs are checked in at a rate and they pump them back out to the post office at the same level.

Remember that everbody can get canned - no matter how wonderful you think the company is.

It was fun to see my quote. But he did leave out the part that I'm letting my Blockbuster account lapse in digust to them jerking with the program so soon. But I rode the wave till it died.