Red Envelope Madness!

Friday, July 30, 2004

Businessweek interview with Reed Hastings

Q. How serious is the threat from Blockbuster now?
A. ...we certainly do take the Blockbuster threat seriously. The difference is that we've got five years of experience. We're shipping nearly a million movies a day, so we've got tremendous operational perfection in what we do. We've had a lot of practice at it. We have overnight delivery to nearly 90% of our subscribers.
Q. ...is Netflix worth the extra $2?
A: Netflix is worth the extra $2 because the service has consistent overnight service to 90% of our subscribers, we have great recommendations, we've got a well-developed and mature site, and the service works extremely well. All people have to do is ask their friends who are using Netflix to see that. We think consumers will prefer the service that is well developed and mature at a slight price premium, which is $22.

9 Comments:

  • At 7/30/2004 10:15 PM, Blogger Bloodslick said…

    You know, NetFlix does have loads of experience under their belts. They've also got a pretty darn comprehensive catalog of titles to choose from. They don't have the name recognition that Blockbuster does, but along with all that name recognition comes people's bad experiences with the company.

    If nothing else, I know that I'm going to keep giving NetFlix my money. I've still got around 150 movies in my rental queue that I need to see!

     
  • At 7/31/2004 4:32 PM, Blogger Luke said…

    Well, Netflix didn't seem to address the issue of Blockbuster offering 2 in-store rentals a month, though, which is a big plus for blockbuster (but doesn't entice me one bit, because those Blockbuster Bastards won't let you set up an account without a credit card - debit cards not accepted).

     
  • At 7/31/2004 7:12 PM, Blogger Hannah said…

    Netflix is better because of the amount of movies they have available that Blockbuster does not have. However, if I didn't want to order over the internet and I didn't care about availability, Blockbuster would be better because I could get more movies since I wouldn't have to wait for delivery. They've never been overnight for me, plus it'd be over 2 nights even if they were, by the time it'd get to them and get back to me. But I hate driving to Blockbuster.

     
  • At 7/31/2004 10:48 PM, Blogger Moon said…

    I hate driving there too. The good movies are always gone. I just bumped up my netflix program to the 5 at a time. I going to watch Hellboy tonight. They have never been overnight for me either but I still will keep it. I really wished I invested money in their stock years ago. sigh.....

     
  • At 7/31/2004 10:57 PM, Blogger GBB said…

    just wait until you cancel your netflix account and they say they didn't get your dvds returned to them and they try to charge you an arm and a leg!

    i am so glad i sent them back individually and used delivery confirmation... those bastards!

    i live about a half mile from blockbuster and am already enjoying it to the fullest....

     
  • At 8/01/2004 1:20 AM, Blogger Morgan said…

    I joined Netflix a couple of weeks ago, and I've already watched 7 movies. That's so many more than I would have been able to watch at Blockbuster, 1 because of the high cost of Blockbuster, and 2 because of the fact that Blockbuster never has anything good in the store or the good movies are out, not to mention that the staff is unhelpful and rude. The Netflix website is much more helful than any Blockbuster employee has ever been Blockbuster sucks and the late fees are even worse. I'll gladly continue to give Netflix my money for a long time.

     
  • At 8/01/2004 8:43 PM, Blogger Spidey said…

    I am also a big fan of Netflix although I have experienced some minor problems like a bad dvd that would not play or sent the wrong movie but in the past year that has only happened a few times and for the most part I enjoy having the mailman deliver movies to my mailbox and not worrying about how long I can keep the movie...its a fantastic service!

     
  • At 8/01/2004 10:50 PM, Anonymous Anonymous said…

    I've never used netflix, but probably would once I move into my own house (yea Im just 17) ... but I'd be more likely to get into the game thing whatever that is called...

     
  • At 8/02/2004 2:46 AM, Blogger The Honorable Reverend Regina Reaganchild said…

    I have been a Netflix customer for about a year now. I think that Netflix can sometimes take a little long to get to my home - but their incredible selection is just a dream for someone like me, because of my odd tastes in movies. Plus, Netflix has all the neat reccomendations and review features. And it comes to your house! The choice is OBVIOUS.

     

Post a Comment

Links to this post:

Create a Link

<< Home