Sunday, February 12, 2006

The more you use Netflix, the worse it works.

If you like Netflix, if you really like it a lot, they don't like you.

"In determining priority for shipping and inventory allocation, we give priority to those members who receive the fewest DVDs through our service," Netflix's revised policy now reads. The statement specifically warns that heavy renters are more likely to encounter shipping delays and less likely to immediately be sent their top choices.
Is this the proper customer service response? Clearly their business model is fucked up and they don't want to admit it. I can understand a need to create new customers, but not taking care of the old ones means that they won't hang around long. Maybe NetFlix is pursuing a "kleenex" strategy of acquiring large groups of new customers and not caring if the old ones hang around. Seems like a bad idea.

4 comments:

Major Rakal said...

Well, I've had the mid-range 14.99/month two-at-a-time unlimited rentals subscription for four months, and I'm only averaging one DVD a week. So I just downgraded to the rock-bottom, $9.99/month version, where you can only get one at a time.

Since I get 3-4 day turnaround, I can still easily have the same one-movie-per-week (or more) to watch for $5 a month less.

If, that is, I still get the same turnaround. It will be interesting to see if they look for "over-utilization" at the bottom tier, too.

qlpijozm

Quite likely pirates ingest just one zebra monthly.

TheGirard said...

I'm on the 2 at a time and am averaging about 4 movies a week or so. It's nice having one of those distribution centers here in the Metro (which is also the new name of the light rail system that is never going to get done) because it never has to leave the valley and I get my movies faster.

I guess I could see where they are coming from. The heavy renters are probably people who will stay and rent the movies regardless of if they are late or not, so instead they are catering to those "fringe" type members who they need to keep interested.

erika said...

My parents, sister and I each have the unlimited, 3-DVD at a time plan (uhh... $18.99?). Both the 'rents and the sis have complained that things are taking a long time to post as returned. And a long time to arrive from the locations.

Since the TiVo arrived in my house, however, I haven't been watching as many DVDs. (As compared to when I was unemployed and watching one DVD = one day). The last 3 I had stayed at my house for approx 3 weeks. That probably knocked my status down a few notches.

The heavy renters are also the piraters, I believe.

Whatever. Business plan, schmisness plan. The movies come right to my door.

Hayden said...

I looked into this business plan and it's largely there to stop the heavy renters and by heavy renters we're talking about those people who rent the maximum number of DVDs possible and watch them all in one day and drop them off before the post office closes that same day. This kind of behavior causes all sorts of problems for Netflix. I haven't heard of a case where "normal" people couldn't get their movies in a reasonable amount of time. I watch 3 movies a week and have great turnaround time (I get my next movie two days after I mailed my last one).