Netflix Price Increase Causes Bigger Subscriber Loss Than Expected

In psychology it's called transferen­ce - This is where someone does something to you that makes you angry and hurt and then you go out in the backyard and kick the dog. Instead of sending out a nasty little letter stating that in effect Netflix was doubling the price, they should have stepped back and carefully constructe­d a plan that explained what the media companies were doing to them and why they needed to raise prices.
Read the Article at HuffingtonPost

Starz's Netflix Contract To Expire February 2012, Taking Over 1,000 Movies With It

This is the time period where everyone gets crazy, uber-greed­y again and thinks they can do it on their own. Some marketing guy at Starz is trying to explain a monthly revenue model for a 1,000 movies. Sony has dropped seventh graders as their security programers and gone with trained squirrels. Microsoft is trying to show movies in Excel on a Smartphone running Win7. They all think they can do it better and make more money without Netflix or Apple or RedBox.

Read the Article at HuffingtonPost

How Netflix Alienated Its Customers And Became Less Popular Than Blockbuster In Two Weeks

If you look at the new Netflix price range it's not that unfair - take too long to explain why. However, how it was implemente­d was one of the worst fiascoes I think I've ever seen. This will be taught in colleges as what-never­-to-do. People at Netflix need to be fired.

If you're going to make such a dramatic change like this, you've got to implement it over eight months to year. And you better have a really spot-on migration plan. Really Netflix you send a letter .. a letter? I would have purchased some commercial time and put a video on the Netflix site from the CEO, saying simply -

We are at the mercy of the content providers and they have decided to drain us of our money. Over the next year, we will be forced to make tough choices but our commitment is to our customers. We will do everything we can to stabilize costs and monthly charges. However, because of the current environmen­t there will be changes.

Prepare your customers. Get the thought into their minds. And start pointing that finger of blame, so that when it hits, they're anger is at Fox and Sony and not at you. Also prepare a migration plan. There must be value added stuff you can give customer for choosing to stay. As I'm typing this, I've thought of about a dozen and half of them don't cost Netflix any more money.

Which brings me to my last point, Netflix if you ever find yourself in this situation again, for a few hundred bucks I can save you from ruining your reputation. Really, I've done this stuff before and I can help - I'm here to help and to heal.  Also, because I'm semi-retired, I'm cheap .. really cheap ... like let's talk free three year contract in exchange for saving company cheap. Just saying ..

Read the Article at HuffingtonPost

Netflix - So long and thanks for all the fish

If you're a member of Netflix, you probably received an email today similar to the one I did (shown below). I love how Netflix tries to make it sound like it's a good thing .. Hey your plan has split - like a stock and now you can choose - either get dvd's in the mail or you can stream them online. But wait there's more - if you don't do anything we'll charge your credit card for a new plan.

If Netflix were honest, here's how the email would read:

Dear Former Customer:

Shit runs down hill.

The old farts who run the movie studios (who have no understanding of technology and still think the internet runs in tubes) have decided that they want to grab ALL the money for themselves in DVD rentals. Although they have no inkling of how this works, nor do they have a distribution channel, these cheese-heads are squeezing us out by charging  exorbitant fees. You can expect similar things to happen to Itunes, Blockbuster, DirectTV, Hulu and Redbox. 

The reasonable price you used to pay has now been replaced with a horrible plan that either lets you get movies in the mail or watch a small selection on your computer - or you can choose to pay almost double for both.

We understand you're probably not reading this paragraph, because you're busy canceling your account. Netflix doesn't blame you; we would do the same thing.

However, because these companies don't have any consideration for customer loyalty or trust, you can be assured that they will screw up the deal. It won't be long before Sony and other content providers are back to infesting your computer, DVR, PlayStation, XBOX with rootkit viruses and have exposed you to every hacker east of Czechoslovakia. 

In the near future, your own equipment will spy on your every button press and snitching on any suspicious activity.  It wouldn't surprise us if they don't go after you with a den of lawyers and force your ISP to only allow access to 100 or so approved websites.

Therefore, our recommendation is to wait. It may take a year or so to completely ruin what's left of their tattered reputations but when that is through, we'll be back with lower price and better selections.

You are always welcome back.

Sincerely - Netflix.

*******

The real truth .. the fact of the matter jack .. is that many people will go back to just downloading the movies illegally. I do NOT endorse this is any fashion. But it's reality - when rentals get too expensive and the commercials are way too long - and the added protection crap becomes unbearable, it will happen.

LA Times - Netflix raising prices

The authentic letter from Netflix

Dish Buster

According to TechSpot, Dish Network purchased bankrupt Blockbuster for $228 million in cash. I have Dish as my cable provider. I love Dish's programming schedule and the variety of shows it offers. And no I have no financial interest nor do I get any discount from Dish.

I wonder what new services Dish is going to provide now that it owns Blockbuster? I can only imagine that they're going to provide a service that is similar to NetFlix. Dish also has agreements with Logittech and Google TV and has SlingBox technology .. so a fully integrated and searchable program provider may be on the way.

Dish might use Blockbuster's online content as a base for an online product to deliver movies, but competition is only getting tougher in this space.- TechSpot

In any case, I think this is a great move on Dish's part. Can't wait to see the new features.

Dish Network Official Site
Blockbuster Official Site
SlingBox Official Site

Netflix ranks speed of ISP

Netflix published a report card last Thursday (January 27, 2011) comparing different ISP (Internet Service Providers). The results were quite surprising. My carrier, Embarq did average but now that they merged with CenturyLink - ranked 3rd to last (see CenturyTel), I hope my service doesn't slow down.

My most hated company, Comcast did amazingly well - ranked #2 and I was not surprised to see Clearwire ranked last.

You can see all the details on Netflix blog site ----> Netflix