Per the article is it fair to “throttle” (ie slow deliveries to) very heavy Netflix users?
The link’s busted, so I can’t see if Netflix is really doing this, or if it’s just some customers’ perceptions. If they are, and it’s spelled out in their rental agreement, then yes, it’s completely fair.
The problem was that it initially was not spelled out in their renter’s agreement. Only after it came to light did they change the agreement.
Sure it’s fair. It just now isn’t as good a deal for high-volume renters. In which case, they should all cancel their subscriptions. If the economic impact of that is great enough, then Netflix will amend their practices again. If not, too bad for the renters. I like the idea of Netflix, but honestly, I don’t get around to watching even 2 DVDs a month. Netflix isn’t geared up to meet my needs. Neither is it geared up to meet the needs of these renters.
Here’s a thought: Offer a third tier of service, so you could keep FOUR videos at a time, for a higher monthly fee. Problem solved. Netflix already tried to appeal to people who didn’t want to spend the full amount monthly with their two-DVDs-at-a-time service. Now they have an opportunity to offer a more expensive service to that niche of voracious renters.
Ah. Then yes, that’s hardly sporting. Makes perfect sense, though.
Netflix already has plans that go up to 8 DVDs at a time. That doesn’t necessarily help with throttling back people who are frequent renters, although the pricing scale makes me think that they could afford to send DVDs at normal speed to the higher-paying members.
Looks like this is the link the OP intended to make.
Besides the fact that they didn’t acknowledge the practice originally, the problem is that they still advertise “unlimited” rentals, which really isn’t true. They’re still trying to keep their throttling practice kind of buried and hidden. If they’d be more upfront about it, I think they’d get less negative reaction.
I’ve actually written to Netflix, complaining that they no longer send a DVD on the same day that they receive one, which was the case until about 6 months ago (I’ve been a subscriber for 2 years). I would have respected it if they told me that it was not their policy to indulge the voracity of high-volume renters, but instead I got a song and dance about the next DVD on my queue not being available immediately. Like season one disk two of Hogan’s Heroes is in enormously high demand.
But… I still get more bang for my buck than I would renting from a store in town, so I’m not willing to give up my subscription. Plus, when I was getting 5 at a time at instant turnaround I watched pretty much everything I could think of, and now my queue is mostly new releases and weirdo obscurities that I never get around to watching anyway, like Calamari Wrestlers.
ZJ
Have they changed their practice of not making movies available to ‘fast renters’ that are available to ‘new renters’? That’s one of the reasons I no longer hold a subscription.
I would bet good money that they’re throttling people because of piracy. Here’s an example: Get three DVDs from Netflix, which you copy immediately (takes 2-3 hours, max). Send the DVDs back and get 3 more in 3-4 days. Repeat.
I don’t blame them for throttling people back.
–FCOD
I think your on the money with this. The only people I know who actually subscribe to Netflix are people with DVD burners who decided this is the cheapest way to create a DVD library. Otherwise who else does nothing all day but watch movies day in and day out.
But how do they differentiate between pirates and people like myself, who, in trying to get the most bang out of my subscription, actually watch the movies as soon as I get them (4-5 hours, max) and send them back?
They don’t, apparently. That’s why I no longer hold a subscription either.
They have subscriptions up to 6 at a time if I remember correctly. They go as low as 1 at a time. 1 at a time is only $9.99 per month.
Jim
The Canadian counterpart zip.ca has just started a “free shipping threshold.” Details vary, but with my plan after 11 DVDs in a month it will cost $2.49 shipping per DVD.
Obviously there is no way to do this. They’re just taking the bet that most people won’t actually watch the movies immediately and send them back the next day.
–FCOD
I was sort of coming to the conclusion that they were doing this. When I first signed up I lived in KC this was the time frame of disks sent:
Monday- Email “Your movie is sent out, expected arrival: Wed”
Tuesday- Movie is in the mail.
Wednesday- Put movie in mail to send back
Thursday- Recieved movie notice in email
Friday- New movie shipped
Saturday- recieved new movie
When I moved to Columbia, Mo, It initiall went like this:
Monday- Sent out movie, expected arrival- Wed
Thursday- Movie recieved
Friday- Returned movie
Monday- Recieved movie notice in email
Tuesday- New movie shipped
Friday- Recieved new movie
I complained and suddenly it was back to normal. Somehow they fixed the delayed shipping problem, and it was looking like before. One day to recieve it, one day to ship it.
Now, however, it looks like this:
Monday- Sent Movie Notice- estimated arrival- Wed.
Tuesday- Recieved movie
Wed- Sent movie back
Saturday- Recieved movie, sending next movie today
Monday- Recieved movie.
Somehow, they get the movie to me in one day, but it takes them 3 days to process the movie once it is recieved. I am about ready to complain about it again, but if it is a policy now, there probably isn’t a point to complaining.
My understanding is that it costs netflix $0.78 for each movie to be mailed to and from a customer. If this is true then once a person (under the $17.99 plan) has ordered their 24th movie, netflix is taking a loss. You don’t stay in business too long by taking losses. I think it is perfectly reasonable for them to slow down service when their profit is at risk.
I generally rent 12-15 movies a month and have never experienced any slowdown in service. Considering what Blockbuster charges, not including late fees and their crap selection, I still think Netflix is a great deal.
I agree with this observation, as well.
Easy. Computer modeling. If you have a good understanding of the data you’re looking at, it’s not hard to interpret it. Of course, it’s not 100% accurate, but I’ll bet this is what they do, and their accruacy rate is pretty damn good.
If Agent 99 has a 3-at-a-time sub, and turns them around in less than a day, all at once, every time, there’s a pretty good chance he’s copying them. From there you extrapolate.
**Netflix “hogs” throttled- Is this fair? **
Fair? From a business standpoint: Yes. From a renter standpoint? It’s akin to Credit Card companies raising your interest rate, so: Yes. Is it legal? Sure. Does it suck? You bet. What can you do about it? Well, there’s always Blockbuster Online.
Dude, you need to get “Get Smart” high on your Queue. Agent 99 was definitely not a he. 
Jim {unfortunately Get Smart is not available on NetFlix yet}