Greencine vs. Netflix review

Here's a very long, detailed review of Greencine, by a user who lives in Kansas. I'm a member of Greencine as well as Netflix. I use them for different things. Greencine shipped me a DVD on Friday, Aug 6, which I received today, Monday, Aug 9, so turnaround hasn't been too bad. Greencine is an alternative to Netflix. Emphasis on alternative.

Queue trivia

Inspired by Megan at jumpingmonkeys.com:

My Netflix Queue Stats
474--Number of movies in main queue
1--Number of movies in "DVDs Awaiting Release" queue
35--Number of movies I've rented in the last 3 months
2-Number of movies labeled "Very Long Wait and Out of Print”
1--Number of movies labeled "Very Long Wait"
0--Number of movies abeled "Long Wait"
3--Number of movies labeled "Short Wait"
30--Number of movies in the queue that are actually television shows on DVD
12--Number of movies in the queue that I've already seen
0--Number of movies I feel are categorized wrongly
7--Average number of times I check the queue per week

IMDB history

This was brought to my attention via Listology: a fascinating look at the story behind the creation of IMDB (the Internet Movie Database), THE essential movie resource on the Web. I didn't know this, but it's been on the Web since 1993. I first visited it in 1995. It's now owned by Amazon, but it was started by a British movie fan-geek.

Over 2,600 DVDs to Rent!

See Netflix the way it was in 1999 via the Internet Archive's Wayback Machine. I get a lump in my throat just thinking about how much times have changed since then.

It's not wacky

Motley Fool's POST OF THE DAY "It's Still About the Cost" By Newsman August 4, 2004 says how Blockbuster is helping to grow Netflix's business:

Marketing Blockbuster's subscription plans validates and raises awareness of this business model, meaning Netflix spends less of its marketing time convincing customers that it's not a wacky way of renting movies.

Why the long wait for new releases?

They're more expensive to Netflix, therefore it's not as profitable for them to have alot of copies of new releases (defined as less than a year old).

From the San Jose Mercury News via Siliconvalley.com
By Mary Anne Ostrom

Netflix is a hit with consumers, but as its subscriber base grows, the most common complaint is the wait for the hottest movies.

Under revenue-sharing agreements with most of the top studios, Netflix pays on average $1.40 to the studios each time a new release is mailed to a Netflix user. But those deals typically expire after a year, which means Netflix enjoys a much higher profit margin when users request older films or those released through independent studios with less expensive sharing arrangements. Netflix said new releases are seldom recommended for fear of disappointing users if there is a wait. Hastings says, ``Creating the demand gets a better margin. This is integral to the formula.''

Netflix Chief Stresses Service

From the Hollywood Reporter:

Aug. 04, 2004
By Paul Bond

THR: You have suggested that your business model is having an impact on the movie distribution business.

Hastings: The smaller the film, the bigger impact we have. Look at "Whale Rider," "Charlie's Angels: Full Throttle" and "The Hulk." They all came out together, and we got "Whale Rider" to do as much as the other two. Talk to Miramax about what we did for "Capturing the Friedmans." According to VidTrack, we doubled the rental business.

THR: Are movies becoming DVDs now that might not have been without Netflix?

Hastings. I'll give you an example. The Oscar-nominated documentary "Daughter From Danang" wasn't going to get on DVD. We said, "that's nuts. This is a good film. We'll commit to a high buy level." So the studio put it on DVD.

A Better Explanation

Henry Farrell inquires into why he and his wife might pay more for a Netflix movie rental on average than a rental from a brick and mortar video store. He concludes that he is irrational.

However, Jonathan Wilde has A Better Explanation

Movie lists galore!

If you want to see what's in my Netflix queue, or lists of movies I've seen, I have a profile at listology.com. I go by the name RosieCotton. You can use Listology.com to make your own lists. It's free, very easy, and you can interact with a fun community of fellow movie fans.

Harvard Study Finds "Ratings Creep"

I knew there was a creep in there somewhere.

Study Finds “Ratings Creep”: Movie Ratings Categories Contain More Violence, Sex, Profanity than Decade Ago

Kimberly Thompson, Associate Professor in the Department of Health Policy and Management at HSPH and Director of the Kids Risk Project said, “The findings demonstrate that ratings creep has occurred over the last decade and that today’s movies contain significantly more violence, sex, and profanity on average than movies of the same rating a decade ago.”

Blockbuster is revamping its late-fee policy to lure back customers

By Bruce Mohl, Boston Globe Staff | August 1, 2004

It's the late fees, stupid.
In Boston the company has cut late fees dramatically and is running an amnesty for customers with late-fee balances. Nationally, the Dallas chain has launched a monthly movie pass program that eliminates the fees and it is getting ready to roll out an Internet-based subscription service that does the same.

More gone from my queue

I rented more Hollywood Videos Saturday. I got State and Main, Elephant, Bus 174 and Evil Dead, just so I could use the coupons. They all were on my Netflix queue at one time or another. I went into the store looking for entirely different movies, but had to settle for those.

Just so you'll know I have a life outside of movies: Took a walk in the Arboretum with my dog and a friend Friday night. Saturday, I went to Hanging Rock State Park with friends for a hike. Sunday, went to church and lunch afterwards with friends and did a little shopping.

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.

Friday movie update

I went over to the dark side last night. I went to the Hollywood Video store. I had coupons: .99 each for five-day rentals and I could rent three movies per coupon. They expire tomorrow. I had to use one! I rented Hellboy, Aileen: Life and Death of a Serial Killer, and Bubba Ho-Tep. Hellboy was the only one not on my Netflix queue. I wanted to get Before Sunrise, so I could see Before Sunset this weekend, but I was distracted by the "New Releases" before I got that far. I'll be returning Hellboy and Aileen tonight.

Aileen was very disturbing. I pitied her far more than I would have pitied a male serial killer. The movie portrayed her as a product of her upbringing, rather than a monster. She even says in the movie that she was not "special enough" to qualify as a true serial killer.

Hellboy is a demon, raised by humans, who goes straight. He becomes a superhero, working for the FBI. That unconventional premise, and a quirkie sense of humor, keep it from being an ordinary superhero movie.

That's funny. I just noticed the coincidence that I viewed two movies about demons in the same evening.

Investors Sue Netflix Over Churn Rate

This sounds to me like a bunch of money-grubbing lawyers trying to exploit Netflix's success on behalf of greedy speculators, but you can read all about it yourself. Investors as a class are suing Netflix for "material misrepresentations to the market which had the effect of artificially inflating the market price." Good grief. You can join the class if you qualify.

Greencine sets new record

Greencine ships from San Francisco. I live in Greensboro, NC. I just received today, Wednesday, July 28, a disc they shipped at 6 PM on Monday, July 26. That's a record. They've taken a week to get here, in the past. However, there were two discs shipped that day, and I received only one.

Live in Pennsylvania? Want to work for Netflix?

Volt Services is a temp agency with an office in Pottstown, PA. They're advertising for an "operations associate" to work in the Phoenixville, PA Netflix distribution center. This job was posted July 6.

Intertitle-o-Rama

Intertitle-o-Rama Y'all know I'm on a silent film kick right now, don't you? It's all part of my quest to see the best movies of the 20th Century. I've already seen about 80 of them, all made before 1929, via Netflix. Here's a site that provides quotes, some bizarre, some hilarious, from the intertitles of silent films. The intertitles are the text-filled screens that periodically interrupt the action to tell you the dialog or give you some narration.

Googlism for: Netflix

Just for fun, I went to Googlism to find out what Google thinks of Netflix. Here's a sample:

netflix is a trailer park
netflix is growing
netflix is the best game in town
netflix is slow
netflix is a flat
netflix is one of our sponsors here at movies for guys
netflix is older
netflix is well positioned to capture at least some of the action
netflix is probably the godfather of all the online dvd rental sites
netflix is basically the biggest and best and has also been around the longest
netflix is agnostic about delivery channel

Canadian Netflix-clone is Today's Featured Competitor: VhqOnline.ca

VhqOnline.ca: Rent DVDs online in Canada - Free Trial!

Canadian Netflix Clone. Ships from Toronto and Vancouver. Good for you, eh?

7/27/04 Update: here's a link to a blog entry about more Canadian Netflixes.

Custom Printing Example: Netflix

Custom Printing - OnTheMark - Commercial & Professional Printing Services These guys print (or used to print) the clever red mailing envelopes for Netflix. According to Reed Hastings, they tried out hundreds of different designs before they came up with the patented one they use now.

All your base...

...are belong to us...

Netflix Addict not working?

Jim, whom I know from the Netflix_operations_discuss group at Yahoo! has reported that Netflix Addict is not working. Let me know if your experience is any different.

Thanks.

Netflix Addict 0.4.1 Released

Netflix Addict is a Java application similar to Netflix Fanatic/Freak for Mac OS X. It gives Netflix users more control over their account with features such as drag and drop re-ordering of titles in their queue and title search and addition. I haven't had the chance to check it out. Send me a review, and I'll post it here.

Bookmarklet to randomize your queue

Here's a bookmarklet, a link which you can add to your Web browser's toolbar, that allows you to randomize your Netflix queue.

OscarWatch - Monitoring Buzz Throughout the Year

OscarWatch is one of my favorite sites. I'll be adding it to my sidebar. I like to keep an eye on the Academy Awards frontrunners. One of my goals each year is to see every single nominee.

From the Dead Horse dept: Netflix Numbers Q1/2003 (Info Feed)

I'm afraid the better they are, the less profitable they will be: the more DVDs you rent, the happier you are with Netflix. However, the more discs you rent, the smaller their profits.

Netflix Numbers Q1/2003 (Info Feed): "It will be significant to see how this effect plays out going forward and whether the company will be able to strike a profitable balance."

Netflix Featured FAQ: Wait statuses definitions

Question

--------------------------------------------------------------------------------
How can I tell if a movie is in stock and how soon it will be sent to me?



Answer

--------------------------------------------------------------------------------
To help you manage your Rental Queue, we provide inventory information for each item in your Rental Queue. Because inventory status fluctuates constantly, it is possible that the status may vary before the movie can be shipped.
Available Now: We have copies of this movie available for immediate shipment.

Short Wait: We don't have quite enough copies of this movie to meet all current demand, so we may not be able to ship it to you right now. We should have enough copies in the near future. The wait for this movie is generally less than 14 days.

Long Wait: There's considerably more demand than available copies for this movie. It's unlikely that we'll be able to send you this movie in the next week or two. The wait for this movie is generally less than 30 days.

Very Long Wait: There is very high demand, limited availability and/or a very long wait for this movie. The wait for this movie is generally less than 4 months, but could be longer, for example if the movie is out of print or we are otherwise unable to buy more copies.

Russian Cinema

I just finished watching the last silent Russian film on my Netflix queue, Storm Over Asia (1928) . Nearly all of the ones I've seen have to do with the Bolshevik Revolution, which makes them difficult to watch. I picked them because they are renowned for their cinematography and editing, mostly, because otherwise, they are just a lot of historically inaccurate Communist propaganda. They are all directed by one of two people: Sergei Eisenstein, who used alot of montage, juxtaposition, and shock cutting, and Vsevolod Pudovkin, who was an experimental surrealist. Pudovkin used surrealism to great effect in Storm over Asia, my favorite on this list, which also featured the most natural acting, in my opinion. Both directors used a lot of obvious symbolism. Most of the acting is in the exaggerated style of the Silent Era. I thought the only Western-style entertainment to be found on this list is Chess Fever, a satirical take on the Russian national obsession. These films are sensationalistic, manipulative, and contain an almost unremittingly bleak world view filled with harsh images of suffering. I am very glad to be finished with them!


Battleship Potemkin (1925) (Eisenstein)
Strike (1925) (Eisenstein)
Mother (1926) (Pudovkin)
Earth/End of St Petersburg/Chess Fever: Triple Feature (Pudovkin)
October (1927) (Eisenstein) and
Storm Over Asia (1928) (Pudovkin)

Today's Featured Competitor: GreenCine

Any of you try GreenCine? They ship from San Francisco, CA, so discs take about five days to get to me here on the East Coast. They "carry the best selection of off-the-wall indie and arthouse". I've found a couple titles there that Netflix didn't have. I use it as a backup of Netflix.
 
I think the only way to make Netflix better is to have competition. I'm a big fan of free market economics, because I believe competition lowers prices and improves quality. OK, that's two topics in one post. Bad blogger.

I'm back!

This blog had a great vacation! I went to Chicago. Climbed the Sears Tower. Viewed not a single DVD. I appreciate your patience. I'm sorry I was not here for you.

Netflix Fan reader poll

Are you now or have you ever been a Netflix subscriber?
	Yes
	No
	What's Netflix?
Free polls from Pollhost.com

On Vacation

This blog will be on vacation from July 11-17. Meanwhile, you may enjoy the reader poll. Thanks for stopping by.

Rate Netflix at Reseller Ratings

You can go to ResellerRatings and do a review of Netflix. You rate Netflix according to various factors, like Pricing of Products and Services, Likelihood of Future Purchases, Shipping and Packaging, Technical Support, and Return or Replacement. So far, they have only 20 reviews online.

New distribution center in Indianapolis

According to Jefflog, there is a new Netflix distribution center in Indianapolis, Indiana. There was no official announcement about this one opening, which leads me to believe it might be a relocation of one which has closed. I get the feeling, based on what I found out about the Stamford DC, that Netflix is closing and re-opening centers occasionally without any fanfare. This would account for the abrupt, inexplicable changes in local service levels.

Film canon

The reason for the endurance of theatrical movies along side the home video industry is that film-going is a social experience. It's the 20th century secular version of church. We share our culture corporately at the theatre. It gives us a common language and reference. We feel we must see the same movies everyone else has seen in order to share the culture. Film is the premiere art form of the 20th century.

I like the idea of a canon of must-see films that doesn't change (especially for the 20th century), if only to teach each generation to appreciate the progress, if any, that film has undergone, and to give them a common film language. To exclude from the canon those films which our predecessors found significant is ignorant and short-sighted. We must understand the historical context in which films were created. We need to know what the standards are in order to grasp when they've been exceeded. There's nothing new under the sun, except what's been forgotten.

I would encourage you to check out the classic films of the past, the AFI top 100, or the Academy Award winners or nominees. It will give you a feel for what our previous generations were thinking and experiencing. The 20th century was the most documented period in all history. Through film, we can experience history with amazing immediacy.

Snail Mail Still Winning The Bandwidth War

This is an old bit of news from Slashdot, but it's still relevant:

Posted by timothy on Mon Sep 23, '02 04:18 PM

LR_none writes "Today's New York Times has this short piece suggesting snail mail is the leading broadband technology, at least for video movies on demand. The article states that the 8 to 9 gigs of data on a DVD would take two weeks to download at 56kb, making Netflix' three-day distribution by mail seem speedy. (Since they can send three or more movies at once, Netflix compares favorably with DSL download speeds, too.) The author estimates Netflix alone distributes 1,500 terabytes a day, which is impressive considering the Internet carries 2,000TB a day (by estimates cited in the article). The 'immediate gratification' aspect of Internet consumerism has given a huge boost to companies like FedEx and UPS, but it's surprising to think of the post office as being the leading infrastructure provider for digital entertainment, in terms of market share and efficiency, for the forseeable future. (Disclaimer: I don't work for Netflix or the post office.)"

Netflix FAQ: Availability vs. Priority

Netflix: "Question


Why was I not shipped my first movie although it is available now?



Answer


We are continually striving to make improvements to our delivery times. Since the first title in your queue was not available at the time we processed your next order, our system shipped the first available title in your Rental Queue from the distribution center nearest your location. This will allow you to receive your movies faster, in turn, improving the value of our service. We truly apologize for any inconvenience or frustration this may have caused. "

Constructive Complaining

This is a copy of a comment I made on one of my posts. I'm reposting this on the front page, because it might prove helpful to someone.

From what I've seen, the good experiences with Netflix outnumber the bad a thousand to one. However, if they are not performing up to standard, start with the customer service section of Netflix.com. That's what they are optimized for. Read the Frequently Asked Questions . If you want to write a letter, their address is in the Press Room section. Or you can try these suggestions from the Federal Government's Consumer Protection Agency
.

Changing our viewing habits

This commentary from the Motley Fool is trying to figure out who these crazy Netflix subscribers are:

We've seen them all:

"that 80% of Blockbuster's rentals come from its top 30 titles is not at all surprising when you consider that about 80% of the store is dedicated to new releases."

We couldn't afford to, before:

"according to company surveys, more than three of 10 subscribers watched fewer than three movies per month before signing up. As Netflix subscribers, they watch significantly more -- on the order of six to seven per month."

We would have seen them, if we could have found them:

"Netflix derives the majority of its business from older titles. A full 99% of its titles are rented in any given year. That means Netflix subscribers watch roughly 19,800 of the 20,000 titles that Netflix keeps in stock. The popularity of older titles among Netflix subscribers often matches or exceeds that of newer titles."

We're not just movie buffs. We're normal:

"More than half of all subscribers are more than 34 years old and earn less than $75,000 per year. More than 40% do not have a college degree. In other words, Netflix subscribers are mainstream."

Niche I Am

I will not rent them from a store:
I want to get them at my door.
I have broadband. I have a Mac--
But movie downloads I can't hack.
For legal films I want to pay,
Bring them here the Netflix way.
Miramax, Warner, Disney, others
If you want my renting dollars
Listen to the Netflix fan,
This is me, I'm Niche I am.

Do you have Netflixia?

Netflixia is the affliction which causes you to rent a movie that someone recommends to you, or because it's a great "classic", but then you hold onto the movie forever without watching it, feeling guilty the whole time. If the guilt becomes too great, you cancel your subscription. You are a Netflictim.

Netflix: FAQ du jour: Expected Arrival Dates

"Q: Why are the expected arrival dates different for movies shipped on the same day?
A: We try to ship you movies from your closest shipping center. If a particular movie is not available at your closest shipping center, we will ship it to you from another location. This can increase delivery time, and therefore, it may have a different expected arrival date."

Netflix Closes Center in Stamford, Conn.

You who live in New England might already have noticed this, but Netflix has closed the Stamford, CT distribution center, according to an archived article in the Stamford Advocate published 5/25/04. Netflix spokesman Brinton says you are now being served by the DC in Queens (Flushing, NY).

Most popular online movie sites

Of the top online movie sites, Netflix is third, behind Yahoo and IMDB.

Netfix's web site design

How Netflix redesigned their Web site in August 2003: here's an analysis from the archives of eleganthack blog.

Late fees

This old article is interesting because of the surprising statistic regarding late fees:

"[Netflix] found that 11 percent of movie renters return movies unwatched because of the time restrictions and that 20 percent pay, on average, about $7.60 in late fees for every tardy DVD rental. "

That's rough. For one in five of us, we're paying $11.00 to rent a DVD for a week from Blockbuster. One in ten of us doesn't get to see the movie at all!

Valuing Netflix subscribers

Netflix's enterprise value is $1.3 billion, valuing its subs [that's subscribers, as in, you and me] at $1,000 per head.

My Netflix Queue

Listology allows me to post my Netflix queue for all the world to see. It's free. You can do it too. Thanks Jim!

Manuel's Netflix Site Has Been Updated

Manuel has made a Web site detailing his experience renting anime from Netflix. He lives in the Detroit area. He's been a member since August 2003 and as of June 2004, he's received 312 discs, eight of which were damaged and two mislabelled.

Defying the Naysayers

If you've been keeping up with all the predictions about Walmart, Blockbuster, and VOD driving Netflix out of business, here are a few reasons to bet on Netflix:

Strong Internet brand
Economics of DVDs
Economics of VOD

Today's Featured Competitor: Clean Films

Family-edited films on DVD available to rent online
Delivered to your door by mail
Free shipping and handling both ways
No late fees
All you can rent for a flat monthly fee of $19.95 (two-out plan)
Cancel any time
Free 15-Day trial
Appears to be located in Utah
Same titles available for purchase

I couldn't find out how many titles they have, but I guess about 3000. The library is small because the films have to be edited first.

Family Edited Movies are backup copies of popular Hollywood DVD titles that have been edited to remove nudity and sexual situations, offensive language, and graphic violence.

90,000 DVDs. No shelves.

A Netflix hub reveals a rhythmic flow of DVDs, bar codes, and Band-Aids.
From: Fast Company Issue 74 September 2003, Page 38
By: Lucas Conley

There are no Nerf balls or cappuccino makers at the Worcester hub. More striking, given the hub's stock of 90,000 DVDs, there are no shelves. "I came from a traditional warehousing background," says O'Handley. "I was like, 'Okay, I want Shrek ; I'm going to go to slot S-407 . . . right?' " He smiles at his innocence. "Not so."

Instead, an ingenious daily dance takes place. Each morning at 8:00, the U.S. Postal Service (cheaper and quicker than the alternatives, incredibly) drops off "pumpkin carts," orange bins with thousands of returned DVDs from all over New England. Operators scan the discs, collecting returns data, which computers at Netflix's San Jose headquarters match to new orders. After lunch, the Worcester operators rescan every disc in their inventory; with each scan, they act on instructions from San Jose to "Ship Disc," if a customer wants the film, or "Scan Tomorrow," if not.

Regarding postage:

Presorting saves Netflix six to seven cents per DVD, O'Handley says.

Silent Film warning

There should be a warning on the silent films in the Netflix movie listings so that people will know what to expect. I'm sorry that this member (S.S.) was disappointed (from the member's review on Netflix):

"I expected this to be a B/W movie, but i did not expect for music to be playing over the actors actions and periodic flashing of text on the screen to be read. There is no spoken dialog for this movie. I turned off within 15 minutes."

The film reviewed is Uncle Tom's Cabin, made in 1927, before the sound era began. It is great that Netflix has opened up a whole new era of film-viewing for people who might otherwise never get to see such an historically significant film like this one.

Solidarity

I'm hurt that my friend Mike at Hacking Netflix got rebuffed by the PR folks at Netflix when he requested an interview or press access or something. You're not alone, Mike.

Naughty Netflix

Twice in one month, Salon posts an editorial about Netflix! Using the relationship metaphor again! Do these people think in terms of anything else but sex?

Netflix FAQ du jour: Available Now, but not shipped--Why?

"Q: The top movie in my Rental Queue says Available Now but I was sent a different movie. Why?
A: We make every effort to ship you as many of your first choice movies as possible, but our inventory levels are constantly fluctuating. The movie that is shipped is the movie that is available at the time of shipping."

Change of plans

I have changed from the 5-out to the 3-out plan, for a couple of reasons.

#1 I have other things to do. It's summer where I live. Social opportunities abound. I haven't been able to keep up with my viewing. If you can't watch 'em, don't rent 'em! Last month, I watched only 12, and so far this month, only 7. The 5-out plan requires I watch a minimum of 10 per month to break even with the brick-and-mortar stores, IMHO.

#2 I have other things to do, two. There's an historic theatre here in Greensboro that's begun an Orson Welles series AND an independent film series, so I'm there twice a week. And there are films opening almost every week that I want to see in the first-run theatres. (Spiderman, anyone?). I haven't even seen Harry's 3rd yet!

Hacking NetFlix : Great Video Industry Overview in USA Today

I'm blogging a friend's blog of an article. Is that allowed?

I like the way he summed it up:

Studios make more from videos than they do from theater box offices. Last year, people paid $8.2 billion to rent videos and $16 billion to buy them, compared with $9.5 billion to see movies at the theater.

Equally impressive, studios in the first half of 2004 licensed 20 movies to VOD in 30 days or less. That's up from 14 in all of 2003 and three in 2002. This year's fast-to-VOD films include X2: X-Men United, American Wedding, The Lord of the Rings: The Return of the King and Mystic River.

That's why he [Blockbuster CEO John Antioco] doesn't think studios will continue to shorten the period retailers have in which to offer hit movies before they appear on cable, satellite and the Internet. If they did, retailers and consumers would buy fewer DVDs. Because studios make about $2 on each VOD showing, they'd need about eight rentals to make up for just one $15 DVD sale lost.

Thanks Mike!

Video-on-demand in constant flux

Video-on-demand in constant flux

Three reasons that VOD could become a reality in a year or two:

More outlets: Starz, Tivo, Netflix, etc
More in-home capacity: Broadband and digital video recorders are growing
More content: Studios are opening up

Further analysis of reasons Netflix wants you to receive more discs

Form 10-Q

This information is from the Form 10-Q which Netflix filed with the Securities and Exchange Commission at the end of the first quarter of 2004. "Subscriber churn" is the term used to describe how many subscribers quit the service or fail to sign up following the end of their free trial. Lower subscriber churn is their goal, because it reduces marketing expenses and increases revenue.

increase in subscriber churn may signal a deterioration in the quality of our service, or it may signal an unfavorable behavioral change in the mix of new subscribers. Lower subscriber churn means higher customer retention, faster revenue growth and lower marketing expenses as a percent of revenues for any given level of subscriber acquisition.

"Subscriber acquisition cost" is the term for how much it costs Netflix to find and keep its customers, through advertising and promotions. They want to keep this low. It's cheaper to keep you as a customer than to try to find a replacement for you if you quit, which is why they want you happy. If you rent alot of discs, you'll be happy (if you watch and enjoy them, of course).

For example, disc usage may increase, which depresses our gross margin. However, increased disc usage may result in higher subscriber satisfaction, which reduces subscriber churn and increases word-of-mouth advertising about our service. As a result, marketing expense may fall as a percent of revenues and operating expenses margins rise, offsetting the impact of a reduction in gross margin.

It is also in their interest to increase the number of titles they distribute, because it makes you happy, you share the good news with your friends, and Netflix spends less on advertising.

We can also make trade-offs between our DVD library investments which have an inverse relationship with subscriber churn and subscriber acquisition cost. For example, an increase in our DVD library investments may improve customer satisfaction and lower subscriber churn, and hence increase the number of new subscribers acquired via word-of-mouth. This in turn may allow us to accelerate our subscriber growth for a given level of marketing spending.

These factors give me reason to disbelieve that Netflix would deliberately slow down the number of discs you receive under any circumstances. I realize this is contrary to the popular findings of DVD Rent Test, but it shows there would be no financial incentive for them to provide poor customer service.

I have observed a periodic slowdown in turnaround of discs, but I think there is an explanation other than that they are doing it on purpose. My theory is that disc delivery times experiences occasional slowdowns as Netflix adjusts to rapid growth. When a new distribution center opens, there is rapid overnight growth in the number of local subscribers, which puts a powerful strain on the new DC with its new, inexperienced staff and management. I think we should give them time to adjust. You'll see that your disc turnaround times will return to normal in about a month, if you hang in there.

CustomFlix DVD Duplication, DVD Replication, On-Demand Video Publishing

CustomFlix DVD Duplication, DVD Replication, On-Demand Video Publishing

Netflix partner

"Our brand is about freedom"

From September 2003, here's evidence Netflix is not deliberately slowing down delivery of DVDs. It would work against them if they did.

InternetRetailer.com - Now playing: Netflix shows how to be new-age web entrepreneur:

Hastings insists that Netflix is not concerned about the number of DVDs it has to ship to subscribers each month, because he figures that large numbers of shipments will lead to more subscribers. "Our brand is about freedom to watch as many movies as you want, freedom from late fees," Hastings says. "For us to continue to succeed, we have to embody that freedom for consumers. The more DVDs our customers watch, the more they enjoy our service, the more they tell their friends about it and the longer they stay on as subscribers."

Two years ago, he notes, the average length of time a customer remained a subscriber was one year. "Now it's about 1-3/4 years," Hastings says. "The longer the better."

Netflix Love

Cp_journalcomic feels the red envelope love.

Netflix isn't holding out on you

FORTUNE SMALL BUSINESS
Wednesday, November 27, 2002
By Alan Cohen

In its four years Netflix has tweaked the inventory-management software so that new orders are automatically generated even as the old orders are returned, and all 12 distribution centers can be polled before a customer is told that the movie he wants next is out of stock.

Of course, we have 29 distribution centers now. I propose the following theory:

Short Wait: means out of stock at your local distribution center (maybe they can make more copies)
Long Wait: out of stock at all of your regional distribution centers (and they can't make any more copies)
Very Long Wait: out of stock at ALL distribution centers nationwide (they definitely can't make any more copies).
Very Long Wait and Out Of Print: Their deal with the studio forbids them to purchase or release any more copies.

It has made revenue-sharing deals with 50 film distributors (including most of the major studios), giving it its large inventory of 12,000 titles, dwarfing the 7,000 to 8,000 available at Blockbuster's largest stores. (That does come at a price: Netflix shared 19.2% of its subscription revenues with partners in the second quarter.)

This is the first place I've seen an actual figure given for the percentage of revenue sharing Netflix is doing. All of the legal documents (go to findlaw.com and search for "Netflix") have that information hidden (confidentiality requested).

Reed Hastings wants you to rent more discs from Netflix:

"The people who watch just two movies a month may realize that they don't use us enough to justify the price." So he has steadily been investing time and money to boost rental rates (the average Netflix customer rents five movies a month).

British Expansion starts in September

Netflix unveiled plans here [Australia] for an overseas expansion. It will launch an identical service in Britain in September, Chief Content Officer Ted Sarandos told AFP.

With its strong movie culture, Europe is a great "stepping-off point" to expanding elsewhere, he added, saying that Australia with its rental-friendly market is "where I want to go next".

Netflix, which set the online mail-order ball rolling, now has a two-million-strong subscriber-base in the United States and expects this to rise to three million by the end of this year.

Rather surprisingly, Netflix claims it encounters few problems with DVDs not arriving at their destination or arriving damaged. The vast majority of subscribers are also apparently honest as there are few cases of DVDs never being posted back.

That's the second time I've read in a foreign news source that they are surprised at the honesty of Netflix subscribers. Hear the skepticism?

Netflix movie downloads TESTING to begin "this year"

DVD renter Netflix Inc., which distributes DVDs by mail, has said it would begin testing movie downloads this year.

Netflix measures Reagan-related spike

Web Feeding Need for News About Reagan

Netflix reported a near immediate 1,100% increase in demand for Reagan documentaries and films that starred the former actor. His most popular movie at the rent-by-mail service is "Hellcats of the Navy," in which he starred with future wife Nancy Davis

Netflix is Number One Advertiser on the Web

Of course, if you surfed more than a minute, you'd know that!

Nielsen//NetRatings AdRelevance Top 10 Advertisers
Month of May 2004
Top advertisers, ranked by impressions, are based on data from AdRelevance, Nielsen//NetRatings'
advertising research service. An impression is counted as the number of times an ad is rendered for
viewing.
Top 10 Advertisers by Company
Advertiser*
Impressions
(000)
1. Netflix, Inc. 1,897,135
2. Dell Computer Corporation 1,840,362
3. YourGiftCards.com 1,756,991
4. Fun Web Products 1,642,216
5. InterActiveCorp 1,588,350
6. Apollo Group, Inc. 1,286,663
7. SBC Communications, Inc. 1,252,500
8. LowerMyBills.com, Inc. 1,236,348
9. Freeze.com 1,142,898
10. Ameritrade Holding Corporation 1,111,579

Tartuffe Follow-up

I must say that Netflix handled this problem with a defective Tartuffe very well. Immediately upon reporting the disc as damaged, they fired off a replacement, which I'd requested. I hadn't received it after 5 days, so I reported it lost. That very day, I received it. I went ahead and watched and returned it. However, they have a second replacement already on the way (which will arrive Monday), which I wish I could cancel. Meanwhile, they've received the "lost" one. Even though I've had the same movie shipped to me again unnecessarily, I appreciate the effort.

It was worth getting the replacement disc, because I enjoyed the second track, which was a documentary called "The Way To Murnau". Very informative.

In six months and 95 discs, my only other problems have been with the mislabelled Last of the Mohicans and a defective copy of The Passion Of Ayn Rand. I should write them to let them know they should add "The Way To Murnau" to the DVD description. Someone might want to rent it for that feature.

Netflix poetry

Busy

I don't have time to talk to you,
I have to add things to my queue.
As soon as I have watched a few
I have to add a film or two.


Lazy

For a film I do not have to go
In the car to the video sto'
Instead I just queue
A film title or two
By mail it will come to my do'

29 Distribution Centers!

Netflix adds Las Vegas shipping center to the list. Here are the others:

Atlanta, Austin, Boston, Chicago, Cleveland, Dallas, Denver, Detroit, Fort Lauderdale, Greensboro, Houston, Kansas City, Los Angeles, Louisville, Minneapolis, New York, Newark, Orlando, Philadelphia, Phoenix, Portland, Richmond, Rochester, San Jose, Seattle, St. Louis, Tampa and Washington, DC.

The same press release says they have 20,000 titles and 2 million customers.

Walmart banner ad *updated

I've finally received a banner ad on my Yahoo! from Walmart.

*update: I had to remove the link to the banner ad because it squished my blog. If you want to see it, I'll send it to you.

Greencine availability system

Three of mine are orange and and eight are green.

Reuters: Early Adopters adopt Netflix

This might warrant a big duh!

According to this Reuters article, early adopters are subscribing to Netflix at three times the rate of the population, and as the early adopters go, so goes the the general population (eventually).

MSN poll results

MSN did a poll (sorry I missed it) that is now closed, but the results show that 51% of respondents prefer to rent DVDs by mail (subscription), vs. 49% who prefer pay-per-view (cable, satellite, or video store).

Exodus no more

Exodus.net, the web hosting service used by Netflix, was bought by Savvis. I had the following conversation with them:

Dan.Walter: Welcome to our live online chat. I work in Savvis' Herndon, VA location and would like to help answer any questions you have about Savvis.
Becky: I`m just curious if you are still the company that hosts Netflix.com. They were with Exodus, so does that mean you guys bought Exodus.net?
Dan.Walter: Savvis purchased Exodus as part of our Cable and Wireless North America acquisition a few months back
Becky: Then does that mean Netflix is one of your customers?
Dan.Walter: why do you ask?
Becky: I`m just curious. I read an article about it. I`m looking for a place to put my web site.
Dan.Walter: Some of our customers sign non-disclosure agreements with us prior to hosting…

Favorite things about Netflix

This link goes to my most recent list on Listology.com.

Could I be any more embarrassed?

You will be smothered under a rug. You're a little
anti-social, and may want to start gaining new
social skills by making prank phone calls.


What horrible Edward Gorey Death will you die?
brought to you by Quizilla

Netflix on Sun Systems

InfoWorld: Directing expansion: September 27, 2002: By Jack McCarthy: E-business Strategies I realize this arcane detail from 9/27/02 might appeal to very few of you, but I like that Netflix appears to be a Microsoft-free zone.

Osier says he is staying with the basics by using Sun servers for the Netflix front-end and back-end infrastructures as well as Linux servers where possible. He is also continuing Netflix's five-year relationship with Exodus, the Internet hosting service.

Tivo + Netflix?

Tivo connects PC to the Internet. I would like this idea, if they would get together with Netflix. Netflix is planning to provide Video on Demand (VOD) over the Internet. If they had an appliance like Tivo's digital video recorder (DVR), then you wouldn't have to watch your movies on your computer, but you could download them from Netflix and watch them on your TV. Netflix has the content. Tivo has the hardware. Two great tastes that taste great together.

Karaoke movie

Blackmail (1929) is a British movie which was made on the cusp of the sound era. Hitchcock, who was the only British silent film director who didn't stink, decided to make it into a talkie midway through filming. His lead actess had a foreign accent, so he dubbed her voice by having a British actress speak the lines while Anny Ondre moved her lips. She plays a blond murderer who is a victim of blackmail by a voyeur. There's a scene in the dining room in which the woman, her boyfriend, and the blackmailer are all together, and the tension is just dreadful. The sound technology is primitive, but when you need it, the dialogue is there. If you like Hitchcock's later stuff, I recommend this one. You'll be amazed how consistent his quality was.

Netflick

Via salon.com:

"In the vocabularies of many culture snobs, 'to Netflick' has become synonymous with 'to rent,' as in, 'Yeah, I Netflicked the "Freaks and Geeks" box set this week.' I know people who have gone buck-wild on their Netflix queues, stockpiling the maximum of 500 DVD titles for future viewing and dreamily pasting their queues to Internet message boards."

author

Netflix Suite MT plugins *update

Here's a collection of Moveable Type plugins that you can use to display your Netflix queues on your blog or Web site. I do not use Moveable Type, so I am out of luck.


*update Here's another link for this plugin. The above link didn't work for me today.

Netfix operations discussion group

You may have noticed that the Netflix operations discussion group has died down a little. I think that's because you and I are content with the service we're getting. People are more likely to complain than to praise.

We seem have an influx of new members whenever Netflix enjoys an increase in visibility or membership, which is fine. Our fortunes are linked to theirs.

We might also be ending up in your spam box :).

If you know anyone who has a Netflix business-related photo, please share it with the group. We're also interested in any changes to the service you might have noticed.

Thanks,
Becky
a.k.a. Netflixfan

June Wait Statuses--Netflix

The only title on this list that had a wait status in May is Forgotten Silver, which was Long Wait then. I haven't experienced any actual wait times for any movies, because none of them was at the top of my queue. There are 490 titles in my queue (which you can see on Listology, so if these indicators are accurate, there are about 10% waiting.

Forbidden Planet (Very Long Wait & Out of Print)
The Sentinel (Very Long Wait & Out of Print)
The Verdict (Short Wait)
Forgotten Silver (Very Long Wait)
Topsy-Turvy (Very Long Wait & Out of Print)

Netflix Widget

Called MyFlix. "This Widget retrieves your Netflix.com movie rental queue list and displays the DVD box art on your screen in a Mac OS X-like dock bar."

For Mac OS X. I had to use the cookie from Mozilla's Camino to get it to work. Cool.

Mary Pickford-A Life On Film

I just finished viewing a biographical documentary about Mary Pickford produced by her foundation, which I rented from Greencine, because it wasn't available on Netflix. She was a magnificent woman. They ran out of superlatives describing her. To show you what a sap I am, I cried when she died at the end! It made me want to go back and see every movie she was ever in. Amazing woman.

I've seen all but one of her films that are available on DVD, including the Biograph shorts.

Netflix and P.O.V. Provide Immediate DVD Access to Award-Winning Documentary Films

This is a deal with the public TV documentary show, P.O.V., that allows Netflix to distribute the documentaries by DVD the day after they air.

Google Answers: Want to find out ownership info on Netflix

Link expires 17-Jun-2004.

I'm sorry this person had to pay $3.50 to Google for info that's listed out in the open on Netflix.com. If you want it, it's in the Press Room section of the Web site.

Greencine Widget *updated

Mac OS X tool. Let's you view your Greencine queue on your desktop. Only shows what's checked out, not what's next in your queue.

*I posted this link before I really had a chance to check it out, but it's cool. I had to download a program called Konfabulator before I could use it. The Greencine Widget is like a plugin that works with the Konfabulator. It lets your Greencine queue stay on your desktop like an icon or floating window.

You can get other widgets, too, that do all sorts of things. Mac OS 10.2 or later required.

"Netflix" used as a verb...

...as in "to Netflix" something, as in the above-linked example "So if you're interested at all, Netflix one and check it out." I've heard it used as a noun, synonymous with DVDs, as in "Do you want to come over? I've got alot of Netflix at home."

Googling Greencine

Greencine's brand is so weak, that Google keeps trying to correct its spelling to "greenline". No such problem with the Netflix brand.

Tartuffe

I received a damaged copy of Tartuffe from Netflix this week. It wouldn't load when I inserted it into the DVD player. On second attempt, it loaded, but froze on the top menu. I found a submenu, but it played only one title of a two-title disc. Second title couldn't be found, even when I used the search feature. I was able to watch the first title, which is Tartuffe, but there was supposed to be an extra which looked to be a documentary, called Finding Murnau or something. I reported it damaged on the Netflix Web site, and I've marked the DVD sleeve. We'll see if I get a suitable replacement, eh?

Greencine vs Netflix

I think if Netflix could create the community feeling that Greencine has, with its articles and blogs, then they would lose some of that corporate feel. Alot of the criticisms I've been reading on the Web lately deal with that. They no longer see Netflix as a dot-com startup success story, but as an omnipresent corporate machine. One of the pluses of Netflix, for me, has been its intimacy with the user. I have felt like I had the video store to myself. Greencine has a dreadful user interface, but I concede they win more points in the warm fuzzies area.

FunMac Forums - Netflix Freak --> Greencine?

There might be a Greencine version of the Netflix Freak? Anyone seen it?

Nettle: One User's Experience: The GreenCine Review

Interesting comparison of users' experiences with Greencine versus Netflix. Many positive Netflix comments.

The primary difference I see is that Greencine apparently buys their DVDs off the shelf, so they can't afford as many copies, which allows for great diversity but low availability. However, Netflix has revenue-sharing agreements for their inventory, so they can make as many copies as they need.

I say Netflix is NOT a "monolith" as one user put it. It was itself a startup not so long ago. I do not fault it for its success nor favor Greencine for being "the little guy". They both have profit as their main motive, or else they wouldn't be charging, now would they?

My Netflix Profile

You have to review at least two films on Netflix in order to receive a profile. Your profile is customizable. It's also anonymous, unless you blab like I'm doing. I'm MaryPickford.

Netflix Freak 1.2 update

I use this little shareware app all the time, mainly to have a handy archive of my queue history, since Netflix keeps only 90 days online. I've used Netflix Freak to put my titles in chronological order. It also stores notes or comments I make about each film, so I use it to keep track of when I've put a DVD in the mail.

Most profitable month so far...

...for Netflix! The month of May marks the first time since I signed up that Netflix has made any money off of me. I rented 12 titles on the 5-out plan, which I reckon averages $2.50 per. That's still a bargain, and I've been getting quality stuff.