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Can't keep a good company down.*

4.2 million. That's above expectations, isn't it?

[* I know that'll probably garner some cat calls from the peanut gallery, but hey, I think NetFlix *is* a good company. And no, I'm not an investor - it's kind of sad I feel I even have to make that disclaimer here.]

"Churn declined to a record low 4.0%, despite the efforts of some commenters on this blog. ;-)"

Take THAT manuel!

Rusty Ramrod

I like both NF and Blockbuster, but these numbers must have been massaged like a greenhorn grunt on his first leave.

"Churn declined to a record low 4.0%, despite the efforts of some commenters on this blog. ;-)"


I personally know about a dozen people who tried NetFlix. All 12 dropped it within a year for varying reasons, so for that group the churn was 100%.
My guess is the real numbers are more in the 20-30% range. Maybe they just left off a 0?

Mike

More customers NF gets, the worse the service becomes :(

You have to hand it to Hastings and his management team. If you listen to the Earnings call, the Netflix boys are focused, no obsessed, with hitting their quarterly earnings numbers. And they have the formula down for making the numbers. If expenses go up in one area, cut something else by the same amount. The unsaid something is DVD shipments to the customers. None of the analysts on these calls must be Netflix customers, because there is never a question about throttling or the lawsuit.

Chilling comment by one of the Netflix suits on the call. Their strategic goal is drive all the brick and mortar video stores out of business. They call this the "tipping" point. Thats when Netflix prices will rise substantially, and customers will have no other viable choices for DVD rental.

CJ

Once Netflix has buried the brick and mortar stores, they will follow good monopolistic pricing theory - that is change their pricing structure to both a monthly subcription fee (varying by number out at time) and a per rental fee. You'll pay based both on belonging, and how much you use the service. This pricing scheme is certainly more fair than the current "throttling" (to control costs). Additionally it allows revenue stability, thus profit maximization.

You're all paranoid. Sad, really.

You're all paranoid. Sad, really.

netflixfan

I love it. Rahrahrah.

Hey Netflix suits. No need to wait. I'd sign up for a flat fee per movie option right now. Get with it.

Back in 1999, NetFlix was a pay-per-rental model. I believe the price was $3.95 (or maybe $4.95), and I believe you had to mail the disk back within 7 days.

If that appeals to you, hey, you're welcome to it. Personally I really, really like a service with no due dates.

anonymouse

These numbers won't last if they continue to piss of their customer base. See the comments in the "New Release Hack" from the guy who came up with the hack in the first place.

Perhaps. Depends on how many customers are pissed off. I personally don't agree with the reasoning. IMO NetFlix provides a good service at an affordable price, but not to a fault. You shouldn't expect to get 15 disks a month AND every new movie on the day of release.

I guess if we see a significant slow down in subscriber growth or a spike in churn, that'll be a sign that customers are bailing. So far the trend indicates otherwise.

A flat fee option doesn't have to have a due date. A plan that charges a monthly subscriber fee of $9.99 and then adds $1.29 per rental is the equivalent of the 8-out plan profit-wise and would meet the needs of many heavy users, while at the same time preserving the all-important Netflix gross margin.

The flat fee plus rental fee idea above is brilliant. Netflix needs to test it somewhere ASAP.

You don't get it. The $1.29 per movie rental fee would have to be per movie per month, otherwise someone could keep out 30 movies beyond the first month for only $9.99. Still most people wouldn't keep their movies beyond a week. Netflix would have to keep track of how long you held each movie, and charge an extra fee when you went over 30 days.

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