Aaron’s annual HDTV guide

TVBarn has some tips for what to watch and how to watch it:

Deciding which TV to get used to mean settling on a brand name and tube size. Now the consumer must choose from plasmas, LCDs, DLPs, CRTs and front- and rear-projection displays.

Read the rest

Expecting the Unexpected

Netflix Inc., the mail-order DVD rental company, knows a thing or two about direct competition, having seen its stock price tumble after it said online retail leader Amazon.com might enter the fray and retailer Blockbuster Inc. started a DVD-by-mail service.

But Chief Executive Reed Hastings said it's the threat you don't know about, not the obvious one sitting in your face, that poses the biggest risk.

"In the near-term, it's Blockbuster. It's direct competition," he said, when asked what he most worries about.

And over the long run? "You have to keep a really open mind about what could change, whether it's piracy, whether it's downloads, whether it's movies become short, movies become interactive," he said.

"What keeps me up is the unexpected. These are the ones that will kill you, not the ones that you thought."

via Economic Times

Hacking Netflix Blogger Interviewed

PRWeek.com interviewed Mike Kaltschnee, blogger of HackingNetflix.com. Here's their teaser:

By day, Mike Kaltschnee is a VP of business development for Index Stock, a provider of photographic images. But by early morning and late evening, he is the writer/editor of HackingNetflix.com, a blog focused on the established DVD-by-mail and incipient movie-on-demand industries.

I'm sorry to say, the entire article is available to paid subscribers only. If you have a scan or transcript of the article, please send it in .

Netflix tag on Technorati

Check out the Netflix tag on Technorati, to see who else is blogging about their favorite online DVD rental service. Many of the folks are tagging reviews of movies they've received from Netflix.

Netflix braced to forgo profit for up to 5 years if needed

via Reuters.com:

"SAN FRANCISCO (Reuters) - Online DVD rental leader Netflix Inc. is prepared to sacrifice profits for as long as five years in order to win up to 20 million U.S. subscribers and fend off major rivals such as Blockbuster and Amazon.com, its CEO said on Wednesday.

Chief Executive Reed Hastings said Netflix, the pioneer of online DVD rental, could capture as much as 20 percent of the U.S. market by extending the strategy it embarked on in October to run at breakeven while spending heavily on marketing.

'Correct,' Hastings said when asked if he was prepared to sacrifice profitability for as much as five years in order to reach 20 million customers, up from 2.6 million currently. 'That's true. We haven't given any guidance on it so therefore it's possible,' he said.

Hastings was speaking to a roomful of reporters at the Reuters Technology Summit in San Francisco."

Cinecopia

I found Cinecopia on my Google ads. Interesting business model. In business since "early 2004". It is a Netflix alternative which requires you to contribute your own discs for trading with other subscribers. Charges $1.50 per trade. Provides the pre-paid disc mailers. No warehouses or distribution centers because members do all the work. They provide the searchable database, but you enter the movies into it. Similar to Peerflix, except Cinecopia doesn't require you to maintain a queue, and you're limited to 10 out. I like that they are located in Research Triangle Park, North Carolina, where all the brainiacs live and work.

Netflix blogger: Rant and Rave

I'm cleaning out the attic, folks. Here's a guy, named Jim Schrempp, who rants and raves about Netflix and his encounter with their customer service (from December 2003).

Netflix ad competition

I can't display them here, because making them small enough also makes them hard to read. I Googled a couple of cute photos from an Netflix advertising competition.


Horror and

Independent

New Netflix Features

Netflix continues to improve their service and their Web site. Now, when they receive your discs, an expanded ratings box pops up, which conveniently gives you a chance to rate the movie, put in your two cents, and recommend to a friend, all in one space. They've also added a Friend Quiz question to the Friends page, in which you get to test your knowledge of your friends' taste in movies. Hacking NetFlix has pictures of the new features.

Need help filling your Netflix queue?

Roger Ebert has written a a couple of books about great movies you should watch. They make great queue-fillers.
Great Books
Great Books II

myFlixer - free software to track your NetFlix movie queue.

Paul emailed me to ask me to share his new freeware with you. It's called myFlixer, and it enables you to "keep track of your NetFlix movie Queue right from your computer's desktop". It stays in your taskbar and updates automatically at intervals you set.

Reed Hastings Interview

`Consumers are very social and they want to talk about movies'

Q. How did the Hollywood studios react to you in 1999? How did you present Netflix?

A.We tried a number of things, none of which worked until we hired (industry veteran) Ted Sarandos. He knew all the right people. They trusted him. They knew each other. They all had a network of friends that went back 20 years. Ted was able to put those (revenue-sharing) deals together within a year with all the studios. It was very much a hire-the-right-person strategy as opposed to camp-out-on the-doorstep.

Q. How do the studios treat you now?

A. In the first two or three years, the studios were tolerant. And to the degree that they supported us, it was because they wanted more competition in the rental market. Which makes sense for them. And so they were supportive perhaps more than our economics at that time justified.

Now they love us because we do such a great business for them on the hard-to-market films. So, ``Spider-Man 2'' we carry. We have it. Everyone has it. We're not adding any particular value to it. But then, you go into Sony Classics, we do a huge business.

Q. As you examine your innovator's dilemma -- creating a new way of doing business that others attempt to copy -- which companies do you look to for inspiration?

A. The studios know, Wal-Mart is always going to sell more of your DVDs and make you more money. So treat 'em well. But we're going to be the passion brand that helps grow the whole category.

Q. Blockbuster and Amazon are the near-term threats to Netflix. What about long-term threats of video on-demand services?

A. ...the profit on a DVD sale is about $14 to the studio. Whereas VOD or Internet downloads, it's $1 or $2 to the studio. That's why it makes economic sense for the studios to protect DVD sales.

Q. Many analysts predict Netflix will be forced to sell its online service to a larger media company to survive? Is that the case?

A. In the near term, over the next couple of years, we're a strong independent company leading the DVD rental business. As the development of Internet delivery comes, it may be that we need to be part of a Viacom, a Disney, a Yahoo, to compete effectively. We'll see at that juncture. But in terms of the DVD rental business, we're strong, profitable, have $175 million in cash, no debt, we have no need to be part of someone.''

excerpted from MercuryNews.com | 02/27/2005 | San Jose Mercury News.

A Blockbuster Campaign Can Be as Good as Gold

Los Angeles Times is talking about how studios spend millions of dollars campaigning for Oscars, advertising their movies to Academy Awards voters. Why?

"Winning an Oscar still means a spike in theater ticket sales. And with DVD sales and rentals now representing more than 60% of a studio's revenue, spending even as much as $15 million on an Academy Award campaign can be a good investment. In this 15-minute culture, Oscar is one brand that lasts.

"That money comes back in spades in terms of more rentals, more sell-through [video purchases], more television fees…. The bottom line is those awards have a life probably as long as that statue," said Russell Schwartz, president of marketing for New Line, which took home a bushel of Oscars last year for the third part of its "Lord of the Rings" trilogy.

This means all the nominees and winners will have "long wait" status on Netflix and other online DVD rental services, unless they're smart and buy more copies. Read more about Oscar campaigning (registration required)

Hacking Netflix has links to where the Oscar winners and nominees appear on Netflix, so you can add them to your queue. You might also want to check out the Independent Spirit Awards, which are better, in my humble opinion.

Blogging Distribution Center

The Netflix distribution center in Lansing, Michigan has its own (unofficial) blog!

Oscar-nominated shorts viewable online--TODAY ONLY

VIA GreenCineDaily you can view five of the Oscar-nominated live-action and animated shorts at Salon.

Hacking Netflix pulls out all the stops

Please peruse Hacking Netflix, which has a plethora of posts for this penultimate day. Then get back to work.

Paramount speeding up DVD releases

Netflix's New Plan: Be Like Dell, from Business 2.0

Netflix has new price plans

Netflix ad on Yahoo for $11.99 plan.

Cool Google Movie Hacks.

Netflix Lifetime Membership for those who need it least

Celebs Get Tons of Goodies at IFP Independent Spirit Awards
via KGET 17

This makes me crazy: Part of the goody-bags that presenters get at the Independent Spirit Awards is a Netflix Lifetime Membership. See the rest of the list.

The 2005 IFP Independent Spirit Awards premieres live on The Independent Film Channel (IFC) at 5pm EST and is edited for rebroadcast on Bravo the same evening at 10pm EST/PST, following an exclusive one-hour red carpet show at 9pm EST/PST.

Netflix Throttle Banner

I don't believe in "throttling". Netflix has stated that they prioritize sending discs out, when there aren't enough of one title on one particular day to go to everyone who wants one, to users who have not received their first choice a lot lately. However, this is a hoot. I found the link on Manuel's blog.

Attention, Netflix! Listen Up!

This is for you, Netflix:

"Internet experts say some blogs are adept at synthesising public opinion and can be a powerful force that companies ignore at their peril."

"easy-to-use blogging software and powerful search engines are now creating vast and efficient "word of mouth networks" on which tens of millions can compare information."

"'If companies don't understand that and don't learn how to track what people are saying, they are going to be hit violently with PR problems that they don't understand or know where they are coming from,'says Robert Scoble, a Microsoft employee who writes a popular tech blog."

"Some executives have started their own blogs to proselytise about their companies, while others are responding by hiring one of an increasing number of intelligence firms that monitor online traffic.

But Mike Masnick, chief executive of Techdirt, one such firm, says most companies are oblivious to blogs and those that are aware do not know how to respond.

He believes the best strategy is to engage bloggers openly and honestly in their realm. Any whiff of insincerity will be picked up and turned against a company."

"'It's the new world and you want to be part of the conversation,' says Mr Scoble. Mr Masnick is quick to agree. 'Companies that don't recognise this are going to get bitten,' he says. " Read the rest at Financial Times (registration required)

A memorable, but not rememberable, movie

via roanoke.com: "A friend who subscribes to Netflix
is always looking for titles to add to her list. So, when I saw this movie, I thought, 'I need to tell her about this one!'
Next time I saw her, I positively gushed. 'I saw the greatest movie the other day! You have to add it to your list!' 'Great,' she said. 'What's its name?' "

It's right on the tip of her tongue. Read more.

Netflix Freak 2.0 adds profile support, more

via MacCentral:: "The Little App Factory has released Netflix Freak 2.0, a major upgrade to the Mac OS X application to help Netflix subscribers manage their queues. Netflix is a mail-order DVD rental service. New features in the 2.0 release include support for Netflix Profiles, a relatively new feature of the service that lets subscribers set up separate queues for each member of their household." Read more

Reed Hastings regrets going public

via The New York Times
ON GOING PUBLIC

IN retrospect, Mr. Hastings wishes he had waited longer to go public. By the time the investment bankers were willing to sell shares in Netflix, the company was no longer desperate for the $94 million it ended up raising in its initial public offering.

"In hindsight, what triggered Amazon and Blockbuster to compete with us is they could see how profitable we were and how fast we were growing," Mr. Hastings said. It has also meant that Mr. Hastings is constantly fending off analysts and commentators who are convinced that long-term survival requires that he sell the company to a large suitor to ward off the competition.

Netflix has $175 million in cash and is carrying no debt, Mr. Hastings noted, and it has "no desire or need to be acquired."

ON VIDEO ON DEMAND

Mr. Hastings anticipates that it will be 2010, if not 2015, before a lot of the movie-watching public is downloading films over the Internet. Mr. Hastings is convinced that the same features that draw people to his DVD rental service will induce them to use his service to download digitally delivered movies. Netflix has devoted millions of dollars to building an easily navigated Web site while it refines a complex software system that recommends movies based on customer ratings.

"If we differentiate the Web site well enough, with rating histories and other features consumers want, that's our strategic leverage" once people start receiving movies via the Internet, Mr. Hastings said.

Online Movie Rental Battle Review

HardwareGeeks.com has updated their "Online Movie Rental Battle Review", in which they compare the major DVD rental services. They used to prefer Blockbuster over Netflix, but now, they're calling it even.

New Netflix subscriber experiences lost disc during trial period

Matt writes to me

“Hi Becky,

I've read through your blog, good one BTW, and Hacking Netflix.
It looks like the going rate for "buying" a disc from Netflix is $20. This is my situation: I signed up for the free trial, about half way through one of my disc doesn't show up on the return trip. If I cancel and the disc doesn't show up for 7 days after cancellation they charge me for it. I assume $20. If I stay on and give it another month to show up it only costs $18 and I get more movies as well. This is what I wrote to Customer Service:

Subject: Help with Your Account

I returned a DVD on Tue, the 15th. My 14 day free trial expires Sun. the 20th. I have to wait 6 days to declare a disc "lost" which would be the 21st. I would like to cancel my account, but if the DVD doesn't show up in 7 days after cancellation, will I be charged for the DVD? If so how much? I feel like I'm being forced into continuing my subscription. I am not at all pleased with this situation.

Thank you for your quick reply,

Matthew

and here is their response 9 minutes later!!

Hello Matthew,

Thanks for your message.

If you mailed back your movie more than 6 days ago and you have not received an email confirmation that your movie was returned, please click on "Report Problem" on the Rental Activity section. After you have clicked "Report Problem", simply follow the instructions on the next page(s) to report the title as "Returned but Netflix has not received it". This action will place a notation beneath the title stating "DVD reported as missing" under the "Movies You've Rented" section of the Rental Activity Page. Once it is received by our warehouse this notation will be removed. We apologize for any confusion this may have caused.

Per the terms of cancellation, outstanding rentals must be received by Netflix within 7 days of cancellation, or we'll automatically charge a replacement fee for the unreturned DVDs.

As a courtesy I have extended your return date by an additional 7 days.

If you have any further questions or concerns, please feel free to contact us.

Thanks,

Scott,
Netflix Customer Service

As you can see they plan to charge me if the movie doesn't show up and "have extended your return date by an additional 7 days". I have reported the movie as lost and canceled my subscription as of today, Sun, 20th. If after about 10 days if the disc has not shown up I plan to restart my membership and let them charge me $18 for another months movies and wait for the lost one to return. Any advice is welcome. I'll let you know how it goes.”

My reply

“Dear Matthew,

Thanks for writing. I'm glad you are enjoying my blog.
I'm sorry I don't have any advice regarding your situation, but my experience with Netflix has been very good regarding lost discs. In one year and over 200 discs, I've never had a lost disc that stayed lost. They always turned up eventually. However, I have had to pay for a broken disc.

May I have your permission to post this entire email on my blog?

Thanks,
Becky”

Matt replies to me

“I really hope this disc shows up. I feel like I'm playing by the rules, but I would rather spend the money on another months membership than pay for a disc. Which begs the question. If I
was a member for 3 years and "lost" 4 discs during that time, when I cancel all my discs have to be returned in 7 days or pay for the discs. What is the statute of limitations?? Do I now
have to pay for all the lost discs??

Matt”


Netflix writes to Matt

Lost Disc Report

Dear Matthew,

We're sorry to hear that Hellboy was lost in the mail. Unfortunately discs do go missing during shipment from time to time, so it is our policy to accomodate for the occasional disc lost during shipment. According to our records, you have reported the following disc(s) as lost in the mail: Date Reported Title 02/20/05 Hellboy If we receive any of these movie(s) from the post office, we'll let you know as soon as they arrive. If you've requested a replacement copy, it will be shipped to you as soon as possible, otherwise, your next movie should be on its way soon. We apologize for the inconvenience.

-Your Friends at Netflix

Netflix Membership Cancelled

Dear Matthew,

Per your request, your Netflix membership has been cancelled, effective 20-FEB-2005.

Please return the following titles by their specified due dates: Due Date Title
Feb/27/2005 The Mask (1994)
Feb/27/2005 Category 6: Day of Destruction (2004)

We hope you enjoyed the service and will consider returning some day.

Movie Received

Your Queue is empty

We've received Hellboy, but since your Queue is empty, we can't send you your next DVD. Please come choose some movies so we know what to send you next. Hellboy Our records indicate that you previously reported this disc lost. We wanted to notify you that we have since received it.

My conclusions

Based on Matt's experience, we may conclude that you should report lost discs as lost right away, if you are planning to cancel before six days elapse. Netflix apparently removes that lost disc from its calculations, so they do not expect you to return it after canceling, nor will they bill you for it.

Lots of new Netflix jobs

A Netflix keyword search on Monster.com reveals lots of opportunities.

Netflix is hiring Operations Managers in Gaithersburg, MD, Santa Ana, CA, Cleveland, OH and elsewhere.

They are also using temp agency, Volt Services, to hire operations associates for Phoenixville, PA and Santa Ana, CA, and a customer service representative for the Netflix call center in Sunnyvale, CA.

Reminder: today is a Postal Holiday

According to the USPS Postal Holiday Calendar, today is Washington's Birthday, also known as President's Day, and all Federal Offices are closed. This means no Netflix today.

Vote for Netflix on UrbanDictionary.com

UrbanDictionary.com allows you to submit new slang words with your definition. You get to vote on the ones you like the most. I've submitted a couple of definitions for Netflix. Please vote on your favorite. It'll make me feel good.

My Netflix Queue Stats

In honor of the first anniversary of my Netflix membership, here are my Netflix queue statistics:

208--Number of movies I've rented from Netflix since I joined.
380--Number of movies in main queue
5--Number of movies I have out
21--Number of movies in "DVDs Awaiting Release" queue
65--Number of movies I've rented in the last 3 months
0--Number of movies labeled "Very Long Wait and Out of Print”
2--Number of movies labeled "Very Long Wait"
0--Number of movies labeled "Long Wait"
3--Number of movies labeled "Short Wait"
0--Number of movies in the queue that are actually television shows on DVD
6--Number of movies in the queue that I've already seen
0--Number of movies I feel are categorized wrongly
21--Average number of times I check the queue per week

Respect Copyrights

Netflix Fan does not endorse copyright violation. I do not encourage people to use their Netflix account to obtain DVDs for the purpose of copying copyrighted materials. I believe people and corporations have a right to own their own property, a fundamental belief which distinguishes American democracy from communism. Thank you for remembering the rights and freedoms for which our friends, family and forefathers fought and died.

For more information, visit RespectCopyrights.org

When I was in school, I was the one who wouldn't let you copy my homework.

Free alternative to Netflix

Your public library. This link happens to go to the New York Public Library, but I'm sure you have one nearby.

Q: How are free things not really free?

A: Opportunity costs, mainly inconvenience: parking, locations, hours, and selection.

SBC to offer video on demand

Per MSNBC , telecom giant SBC plans to offer broadband subscribers the ability to download up to three mvoies at a time to their digital video recorder and replace them when they are finished viewing them for a flat fee of about $18 per month, later this year.

The Netflix reaction: "A Netflix spokeswoman said the company does not believe SBC and others will represent a significant threat to its basic business for at least five years. That's not because of technological barriers, but economic ones.

'The studios have an exclusive window on DVD rentals and DVD sales. The money they make on rentals is far more than they make on Internet delivery of movies or content,' said Shernaz Daver, spokeswoman for Netflix. 'If you look at Comcast or anyone, what they are offering to date to be downloadable is their old content -- their collection -- not their newest releases.'

Daver said the company believes that while Internet deliver will eventually emerge as an important method of getting films to customers, DVD's will remain the primary form for the remainder of the decade because that's where studios can make the most money.

'DVDs will remain the predominant mechanism for delivery for the next five years,' she said noting Netflix has nearly 3 million customers and an offering of 30,000 titles. 'That's not something that any of these companies can offer today. Can they do it in the next five to 10 years? Probably, and that's the reason we are going to be offering some kind of digital media this year.' "

CustomFlix Establishes Premiere Distribution Opportunities

via IBC News:

"CustomFlix today announced it has extended its On-Demand DVD Publishing service to now offer members distribution opportunities with top retail and rental programs including Walmart.com, Wal-Mart DVD Rentals, Amazon.com Marketplace, Amazon.com Advantage, Netflix, CinemaNow, GreenCine, Froogle, and Yahoo!Shopping.

An industry first, CustomFlix has put in place a series of programs and relationships that streamlines access to top worldwide rental, retail and online video-on-demand distribution companies. CustomFlix members have the opportunity to include their title for consideration by all of these top companies in one step via the new CustomFlix Connect program.

"Content owners and independent producers want to get the best exposure and placement possible for their films," said Geoff Grant, independent filmmaker of The Journeymen, the first-ever modern tennis documentary made with circuit pro's including Andre Agassi, Boris Becker, and Goran Ivanisevic. "CustomFlix Connect makes that possible. The CustomFlix turnkey service offered everything I needed including on-demand DVD production and fulfillment. Thanks to CustomFlix, my film The Journeymen is now available at Netflix, Amazon.com and other sites."

If you have a microbudget indie horror film or such, you can contact CustomFlix or Netflix to see about distributing your film through them. Cool.

Netflix board member doesn't use BitTorrent

I learned ,via the Venture Capital Blog at BusinessWeek Online, that Netflix board member Rich Barton is the founder of Expedia.

Expedia and NetFlix have something in common—they both changed whole industries. Do you know anyone who doesn't buy plane tickets online? I don't. And that includes my low-tech parents who have now mastered the nuances of HotWire. In another five years, you may not know anyone who pays late fees either. Barton sees similar opportunities still looming across the net. Media is a big one. "We have all this broadband and I can't get old episodes of Seinfeld on the web. That is wrong and it won't last," he says.

[I reckon he ain't heard of BitTorrent, eh?--B]

Here's the complete list of Netflix directors
Reed Hastings, Netflix
Richard N. Barton, Founded Expedia, Inc. in 1994 and was its President, Chief Executive Officer and director from November 1999 to March 2003
Timothy M. Haley, Redpoint Ventures
Jay Hoag, Technology Crossover Ventures
A. Robert Bob Pisano, Screen Actors Guild National Executive Director and Chief Executive Officer
Michael N Schuh, Foundation Capital

Nothing on the big screen worth watching? Netflix to the rescue

January and February are the traditional dumping grounds for bad movies in theatres. This is a good time of the year to rely on your Netflix queue for your movie fix. Phoebe Flowers, of the South Florida Sun-Sentinel, briefly reviews five recent movies you might have missed, which are available on DVD, to help you fill the winter movie doldrums.

How it works--with typos

Netflix has a new section under their FAQ (frequently asked questions) called "How it works", which illustrates step-by-step how the online DVD rental-by-mail service works, and answers some very basic questions. It contains two typos. Under "How much does it cost?", it says the 3-out plan costs $29.99 (it really costs $17.99). Under "How fast will I get my DVDs?", it says there are 30 shipping centers, but it has a little map of the U.S. with only 20 dots on it. The whole thing is really pushing the 5-out plan, for some reason.

And in case "How it works" doesn't work, they kindly offer you their customer service number.

Still have questions?
Please contact our
Customer Service
department at:

1-800-585-8131
Mon-Fri 6am - 7pm PST
Sat-Sun 6am - 2:30pm PST

**update: this version of How it Works is not the one you get to via the main welcome screen. I found it via the press room.

Blockbuster in two kinds of trouble

Hacking Netflix is reporting that the FTC is examining Blockbuster's hostile takeover bid of Hollywood Video, to possibly block it, and attorneys general are investigating Blockbuster's "no late fees" advertising, because it may be deceptive.

Average Turnaround Time by Throughput

I've been trumpeting Listology's Netflix Tracker for months now, because I'm so excited about its potential uses. The Netflix Tracker is collecting data from currently active Netflix subscribers, who report when they receive or return discs to Netflix. Jim has finally decided he has enough data to draw some interesting conclusions. He has designed a brilliant report which shows what turnaround time we experience in relation to how many discs we rent from Netflix over the last three months. It's called the Average Turnaround Time by Throughput report.

Canadian Netflix clone Zip.ca celebrates one year anniversary

Via Canada NewsWire Group:

"I can definitely say we wouldn't be where we are today without our loyal Zip.ca members. Thanks to their support, we are about to ship our one millionth DVD at some point in the next week or so," continued Anderson. [Tiny compared to Netflix, which ships three million per week--B]
...
Zip.ca offers Canada's most extensive DVD library (over 26,000 titles and growing) and best prices for DVDs rentals. Zip.ca provides members with 24/7 online convenience for creating and managing their own personal ZipLists of must-see DVDs, and daily delivers thousands of DVDs right to members' doors across Canada. For a low monthly membership fee, Zip.ca provides unlimited DVD rentals, with no deadlines, no late fees, and free two-way shipping."

Reed Hastings sound byte regarding Blockbuster's "no late fees"

VIA Reuters: "Netflix CEO Reed Hastings calls Blockbuster's policy 'a sign that we are really setting the agenda in the video rental business and they are reacting. It's not really 'no late fees.' It's the 'Blockbuster automatic purchase program.''"

Netflix distribution center in Baton Rouge, LA is tiny

Hacking Netflix found this article, with photo, describing the process our movies go through at Netflix's Baton Rouge, Louisiana, distribution center, which opened September 1, 2004. The article says it's a typical DC, processing between 3,000 and 30,000 per day and employing eight people in an office setting, not a warehouse. According to Netflix's own fact sheet, the average DC processes 20,000 per day (3 million per day/30 distribution centers/5 days per week). They pick up their mail in the morning and drop it off in the afternoon after scanning it all in by hand.

If you have given your significant other a Netflix subscription for Valentine's Day, you may visit the link and read the rest of the story.

CinemaNow Unveils a New Chapter in Television Viewing

Netflix is already working on using Tivo as a device whereby you can get Netflix movies downloaded to your TV, so you can get movies on demand, without having to wait for the DVD to come in the mail. This article, via eHomeUpgrade, recommends that video-on-demand service CinemaNow does something like that, because if you use their service now, you have to watch the movie on your computer, unless you've networked your computer to your TV.

"Home networks and broadband content services still intimidate people, or even worse... consumers don't understand why they even need a network, as noted by a recent research study by Harris Interactive. But hope still remains. I think if CinemaNow wants to breakdown the barrier the company needs to partner with cable/satellite providers and integrate their service into the set-top box.[emphasis mine] Think of it as “enhanced” video-on-demand where cable/satellite subscribers can order past episodes (not to mention CinemaNow's entire movie rental library) through the interface they're already familiar with."

I hope Netflix beats them to it.

the Long Tail of Netflix

Chris Anderson discusses a concept he defines as the Long Tail, which is a marketing term describing the phenomenon we're experiencing now, with Netflix. "Unlimited selection is revealing truths about what consumers want and how they want to get it in service after service, from DVDs at Netflix to music videos on Yahoo! Launch to songs in the iTunes Music Store and Rhapsody. People are going deep into the catalog, down the long, long list of available titles, far past what's available at Blockbuster Video, Tower Records, and Barnes & Noble. And the more they find, the more they like. As they wander further from the beaten path, they discover their taste is not as mainstream as they thought (or as they had been led to believe by marketing, a lack of alternatives, and a hit-driven culture)...

For too long we've been suffering the tyranny of lowest-common-denominator fare, subjected to brain-dead summer blockbusters and manufactured pop. Why? Economics. Many of our assumptions about popular taste are actually artifacts of poor supply-and-demand matching - a market response to inefficient distribution." Read the rest at Wired.com.

Netflix, with it's efficient distribution system, is allowing everyone to have their own virtual video store, stocked with just the movies the fit their peculiar taste. We don't have to fit the mold anymore.

There are any number of equally attractive genres and subgenres neglected by the traditional DVD channels: foreign films, anime, independent movies, British television dramas, old American TV sitcoms. These underserved markets make up a big chunk of Netflix rentals. Bollywood alone accounts for nearly 100,000 rentals each month. The availability of offbeat content drives new customers to Netflix - and anything that cuts the cost of customer acquisition is gold for a subscription business. Thus the company's first lesson: Embrace niches.

Netflix has made a good business out of what's unprofitable fare in movie theaters and video rental shops because it can aggregate dispersed audiences. It doesn't matter if the several thousand people who rent Doctor Who episodes each month are in one city or spread, one per town, across the country - the economics are the same to Netflix. It has, in short, broken the tyranny of physical space. What matters is not where customers are, or even how many of them are seeking a particular title, but only that some number of them exist, anywhere.

Anonymous comments

I'm a big fan of free speech and all that jazz, but I'm tired of anonymous posters making snarky comments on this blog without any accountability at all. I have disabled anonymous commenting, so from now on, you'll need to have a free Blogger user name and password in order to comment. Thank you for your support.

The perfect gift for a Happy Chinese Lunar New Year!

The Year of the Rooster begins February 9, 2005. Is it a coincidence that Netflix uses red envelopes and that people give each other gifts in red envelopes for the Chinese New Year? I don't think so.

Via JapaneseWeddingFavors.com

Traditionally, the Chinese red envelope holds lucky coins often called I ching coins or small precious gifts for gift giving. The red envelope is given to bring good luck, prosperity and happiness to the recipient. Red is the symbol of happiness and ultimate joy, thus the color red is used for all celebrations including weddings and Chinese new year.

You can buy your authentic Chinese red envelopes here, or you can give a gift subscription to Netflix :).

For more about the Chinese calendar, and the New Year celebration (Spring Festival), visit the China Page.

Be who you are

It's also available on Netflix if you want to check it out.

Answers.com on Netflix

See information on Netflix using Answers.com, a new way to get around the Web.

Netflix distribution centers

From a discussion on Fool.com's Netflix message board, and Listology.com, I have concluded that Netflix doesn't maintain a physical location at each of the places on the following list (they officially claim only 30 distribution centers). There's not a one-to-one relationship between PO box addresses and distribution centers. I believe they use a drop-shipping method (a money-saving way of mailing by delivering mail in bulk to a postal facility close to the addresses in the mailing). You may have a Netflix PO Box address on your return envelope's label which doesn't seem to match the DC, because the DC code is for a "metropolitan area" which might be served by several drop boxes. It could be that Netflix sends a truck from each DC each morning to several area post offices to pick up discs for a central processing point, and in the afternoon, drops off the next batch.

As we've heard in the past, Netflix processes discs both by hand and machine. I reckon that a large metropolitan area like New York or Chicago would have a central DC that uses a machine to read, scan, label, and sort all the discs for the region. Such a machine would be too expensive, and unnecessary, for every DC to own.

The following list of Netflix distribution centers was collected by Listology's Netflix Tracker . Where there is more than one city listed side-by-side, I believe more than one PO box address is being used for the same DC code. We still have too many DC codes missing because not everyone who uses Listology has verified their DC's code.

1. Austin, TX (need code)
2. Baton Rouge, LA (BR)
3. Bedford Park, IL (need code)
4. Birmingham, AL/Duluth, GA (DUL)
5. Carol Stream/Chicago, IL (CHI)
6. Chattanooga, TN (need code)
7. Cleveland, OH (CLE)
8. Columbia, SC (COL)
9. Coppell, TX (DFW)
10. Daytona, FL (need code)
11. Denver, CO (DEN)
12. Flushing, NY (FLU)
13. Fresno/Bakersfield, CA (need code)
14. Ft. Lauderdale, FL (FTL)
15. Gaithersburg, MD/Easton, MD/Harrisburg, PA (GAT)
16. Greensboro, NC (GB)
17. Hartford/Worcester, MA (WOR)
18. Honolulu, HI (HI)
19. Houston, TX (HOU)
20. Indianapolis, IN/Bowling Green, KY/Louisville, KY/Dayton, OH (LOU)
21. Kansas City, MO (KC)
22. Lakeland/Tampa/Ft. Myers, FL (LAKE)
23. Lansing, MI (LAN)
24. Las Vegas, NV (LV)
25. Manchester, NH (need code)
26. Minneapolis, MN (MN)
27. New Brunswick/Newark, NJ (NWK)
28. Oklahoma City, OK (OKC)
29. Orlando, FL (need code)
30. Paducah, KY (need code)
31. Phoenix, AZ (PHX)
32. Pittsburgh, PA (PITT)
33. Richmond, VA (need code)
34. Rochester, NY (ROCH)
35. Salem, OR (SAL)
36. San Francisco, CA (need code)
37. San Jose, CA (SJ)
38. Santa Ana, CA (SA)
39. Southeastern/Philadelphia, PA (PHIL)
40. St. Louis, MO (STL)
41. Stamford, CT (need code)
42. Tacoma, WA (TAC)
43. West Sacramento, CA (SAC)

You can find your DC code on your return label. If you would be so kind, please check this list for your code, and if it's missing, email it to webmaster at listology dot com.

UPDATE 1-09-06 I've re-posted this list of Netflix distribution centers, including mailing addresses, which used to be on Wikipedia.

Netflix "throttling" makes the evening news in San Jose, CA

KGO-TV (broadcast channel 7) of San Francisco, Oakland, and San Jose investigated customer's complaints of "throttling" on their news feature 7 On Your Side with reporter Michael Finney.

Netflix responded to these complaints in an e-mail to 7 On Your Side, stating...

"Our goal is to provide a high level of customer service and operate a financially sound business. Depending on inventory and number of shipments to be processed, heavy users of our service might experience a slight delay in receiving movies."

Read more

This is similar to, but more explicit than, the message Manuel, who blogs on My Netflix Journal, had posted that he received from Netflix customer service which confirms that Netflix is deliberately giving lower priority to shipping discs from your #1 queue position, or lower priority for one-day turnaround, if you are a high-volume renter. This is known as "throttling" in the Blogosphere.

Here's what they said:

Dear Manuel,

Thanks for your message.

In determining priority for shipping and inventory allocation, we give priority to those members who receive the fewest DVDs through our service. As a result, those members who receive the most movies may experience next-day shipping and receive movies lower in their Queue more often than our other members. By prioritizing in this way, we help assure a balanced experience for all our members. Those that rent a lot of movies get a great value and those with lighter viewing habits are able to count on our service to meet their limited needs.

If you have any further questions or concerns, please feel free to contact us.

Thanks,
*******,
Netflix Customer Service

This raises the issue of limited versus "unlimited". What are the legal ramifications of using that word? Can a business use the word "unlimited" in their advertising, if they are going to give higher priority service to lower-volume users? Is making someone go to the end of the line, the same thing as limiting their access to the service?

Netflix competitor Amazon Unveils Loyalty Shipping Program

via The Street.com

Amazon is offering a customer loyalty program which costs $79 per year, and for which you receive free two-day shipping or overnight for $3.99. In other words, you'll break even after your ninth purchase. The article asks if this is Amazon's way of preparing to take on Netflix in the online DVD rental business.

Blockbuster plans hostile takeover of Hollywood Video

via Reuters.com

Netflix rival Blockbuster is going straight to Hollywood Video shareholders with an offer of $14.50 per share, in a bid to takeover the company against its Board's wishes. Read more

Netflix advertisements are part of spyware

I sent the following message to public relations at Netflix via email on January 27:

"A Web site named pcpitstop.com alleges that Netflix uses a business called Gator/Claria to advertise its service. This business allegedly installs spyware or adware (unwelcome software) called GAIN, on Web users' computers, against their full knowledge and consent. Can you verify or confirm for me whether this is true? If you disagree that GAIN is spyware or adware, could you explain to me why? Can you confirm or deny the nature of your relationship with Gator/Claria?"

I haven't received a reply.

According to PCPitStop.com, Netflix is one of the top 20 advertisers utilizing Claria to distribute their ads. They obtained the information from documents filed with the Securities and Exchange Commission.

This tidbit about Claria comes via the L.A. Times:

"The businesses most often accused of distributing spyware, including privately held Claria Corp., WhenU Inc. and 180Solutions Inc., say they are providing legitimate "adware" services to customers who approved the installation. But their disclosures are often misleading or buried: A recent Claria license ran for more than 60 electronic pages, first mentioning the phrase "pop-up" on page 18."

Maybe a Netflix employee who reads my blog can help me clear up this issue.

Netflix is 30% of indie film rental market

Via The Documentary Film Weblog , which quotes an article from Forbes in which Ted Sarandos says Netflix has single-digit market share, but 30% of independent movie rentals.

The figure could be higher now. This is from a year ago.

Shabbir's Diary reviews Netflix Profiles feature

Shabbir's Diary has a nice review of his experience using the new Netflix Profiles feature.

Netflix did a bang-up job today

I returned five DVDs yesterday. I knew better, but I did it anyway. We were iced in this past weekend :). Anyhow, Netflix received all five today, and shipped four more. One is shipping tomorrow. I'd say that's pretty good. According to my account history, I have rented 21 discs from Netflix in the last 30 days. I've rented 65 in the last 90 days. Shouldn't they be "throttling" me? I just want to say, the Greensboro distribution center is the BEST.

Netflix competitor GameZnFlix, Inc. Opens Distribution Center in Sterling, Colorado

via Yahoo news"The company has been experiencing outbound shipping delays due to the demand on its limited inventory and the delays in delivery time through the Postal Service. We have been increasing the inventory to meet the demands and by opening the Colorado center we expect the delivery times to improve. National Fulfillment Inc. will continue to handle our fulfillment needs from Gordonsville, Tennessee for the East Coast and Rancho Dominguez, California for California, Washington, Oregon, Alaska and Hawaii."

They plan to open another one in the Northeast U.S. in 2005.

Netflix promises video on demand this year

Via the San Francisco Chronicle:

"A major initiative for Netflix sometime in 2005 is the planned premiere of video on demand, considered the future of movie viewing. Users will be able to download films over the Internet rather than having to wait for them to be delivered by mail.

Only a limited number of movies are going to be available at first, [NetFlix founder Reed] Hastings said. He added that initial customer interest will be modest, but then grow every year until the end of the decade as more films become available and more households get high-speed Internet connections.

Several Internet companies such as Movielink and Cinemanow already offer online movie downloads. Cable companies have had equivalent services over their lines for several years.

'Two years from now, I think we'll be looking back more at how Netflix handled the challenge of video on demand than how it responded to Blockbuster, Amazon and Wal-Mart,' [Mark] Mahaney, [an analyst for American Technology Research] said. "

The Internet Stock Blog: ticker: NFLX

I don't post about Netflix from an investment point of view. I know next to nothing about investing. I'm a movie fan, primarily, and I love how Netflix empowers me to find the movies I want. I don't intentionally report on stuff here that might affect the value of NFLX stock, so I recommend you check out Internet Stock Blog for that info.

The Internet Stock Blog has a NFLX category, which gathers the latest investment-related news about NFLX. It is a "readers' digest" of articles from sources all over the Web, like Motley Fool to Marketwatch. The latest is about how "Netflix' stock traded up 15% after the company's results and conference call" on January 24. You can read more here.

free TiVo...

...with rebate and another purchase, at CompUSA and The Good Guys stores. Tivo and Netflix are working together to bring us movie downloads, which they say will roll out this year, maybe this Summer. Read the fine print Via Tech News on ZDNet

How does Netflix get inside your head?

Sunday's Denver Post has a great article from staff writer Michael Booth on movie recommendation Web sites and how they work. They cover Netflix, What to Rent, Movie Lens, and Film Affinity.

""These systems don't really care who you are," Heckerman said. "They just compare your choices to other people's choices. A reputable system will throw out any personal information."

"The best way to get better picks, he said, is to crunch huge volumes of information. The more people that use a site and rate movies, the more accurate it gets for everyone." Read it

Oscar Nominees Available At Netflix

Hacking NetFlix has posted a list of 2004 Oscar nominees available from Netflix.

I have seen all of the movies on this list.

Top Films in Critics' Top 10 Lists: 2004

Engin Palabiyik has created a magnificent chart to help you discover the must-see movies of 2004 and predict the Oscars.

Netflix Customer Support Says One Movie Per Mailer

From Hacking NetFlix This is what Netflix customer service reps told a subscriber: "we strongly recommend only placing one DVD in a return mailer at a time, unless it is an extreme situation and you must place two in a mailer. Our mailers are designed to hold only one DVD and having multiple DVDs inside the envelope may cause the envelope to become damaged and possibly result in a lost disc."

Monday is Netflix's busiest day

According to the data collected by Listology's Netflix Tracker, most returns in one day are on Monday, so I used to think Tuesday would be the busiest processing day at the Netflix distribution centers. However, since they don't process mail on Saturdays, anything you return on Friday or Saturday will get processed on Monday, which makes Monday their busiest day instead (if your distribution center is nearby). Listology has tracked over 4000 Netflix rentals, but they have complete data on about a fourth of those. You can examine it yourself.

Another Netflix Job in Los Gatos

Job listing on Yahoo HotJobs A company called Modis is hiring a senior user interface designer to work on "conceptualization, design, and development of Netflix products." Posted January 26 on Yahoo HotJobs.

Netflix in Los Gatos is hiring

Via CareerBuilder.com In addition to the jobs listed on the official Web site, Netflix is also hiring an executive assistant for vice presidents over marketing and communications. Eight positions were posted January 24, so these are pretty fresh.

Analyst predicts Netflix will cave in to pressure from Amazon

Per this article in CBS Marketwatch, William Lennan at W.R. Hambrecht is saying that Netflix will have to cut prices again, due to pressure from Amazon.com. "In Lennan's view, Amazon is likely to enter the U.S. market this year with an online DVD rental service priced as low as $13 for up to six DVDs a month."

Greencine Online Film Festival

GreenCine and DivXNetworks Announce Online Film Festival; First Festival to Offer Feature-Length, High-Quality Independent Features and Documentaries for Secure Digital Distribution:

"The GreenCine Online Film Festival will target high-quality, feature-length films screened by a distinguished jury including production executives, film journalists, talent agents and video technologists. To be held June 1st to June 26th on GreenCine.com, the new festival presents an opportunity for serious filmmakers to present their work to a much larger audience than a traditional film festival. Winning films will be available for download in their entirety in secure, DVD-quality DivX video to a global audience. Viewers will be able to watch the winning films on any PC or on televisions through one of 20 million DivX Certified consumer electronics devices available from most major manufacturers. "

Amazon Light 4.0 links to Netflix

Amazon Light 4.0 is an alternative interface for Amazon.com. It retains the functionality of the Amazon site, while streamlining and simplifying. You can search Amazon for any product without being bombarded by page-cluttering advertisements and suggestions. Best of all, there's a direct link with Netflix, so you can easily search Netflix for any DVD you find on Amazon with only one click.

With Amazon Light 4.0, you can also do the following things:

Buy the item from Amazon.com
Add the item to an Amazon.com Wishlist
Send URL to a friend with GMail
Set up a DropCash Campaign
Send URL and Title to your Blog on Blogger
Send URL and Title to your Del.Icio.Us Account
Lookup a book at your Local Library
Find the same item at Netflix (DVD/Video)
Look up an Artist on iTunes (Music)

If you want to add to the Netflixfan unemployment insurance fund (for if I get fired for blogging), click on "settings" and enter netflixfan-20 as the affiliate id.

First seen on Openstacks.

Netflix's 4th Quarter Earnings Report

Netflix announced their Q4 results (download PDF) today. I managed to glean a few interesting details from it:

Revenue of $144 million
GAAP Net Income of $4.8 million
Lowest churn ever in 4th Quarter: 4.4%
2,610,000 subscribers
Marketing expenditures increased by nearly 100%
Over 30,000 titles

Dell Computer Heaviest Q4 Web Advertiser

MediaDailyNews 01-21-05: "Netflix, with 5.47 billion impressions, was fourth"

Netflix queue filler: 100 Essential Films

What Slant // magazine has to say regarding their list of 100 Essential Films: "While you will find many popular classics and critical favorites on our list of 100 Essential Films, our goal was to mix things up a bit. This list should not be construed as a definitive 'greatest films' package, but as an alternative compiled by a group of kinky film-lovers wanting to give serious critical thought to neglected, forgotten and misunderstood gems."

Netflix can make you a winner

Wondering what else you can do with a Netflix subscription? Well, you can use Netflix to watch all the movies you need to become your neighborhood Scene It?(r) champion. It's a DVD-integrated board game which tests your knowledge of all the movies you've ever seen, using clips, quotes, trivia, and other puzzles.

Be aware, when watching series discs via Netflix

Mike Harris, a Netflix member, writes on his blog about an exchange he had with Netflix recently, in which he complained about them shipping his TV series discs out of order. This is a big problem when you get season two discs before season one, for example.

Netflix's reply is that they will consider his suggestion to ship series discs in order. Meanwhile, "we suggest adding one season at a time to avoid getting them out of order." Read the rest

P.S. Greencine fixes this problem by giving you the option to lock your queue, so that no matter how long a wait you have, you will get your discs in the specified order. This leaves you discless for a while.

Netflix's Cinematch crashed

"Recommendations Unavailable" and "Friends Unavailable"

It looks like Cinematch, the proprietary recommendations software that Netflix uses, is broken again.

My Blogging Agenda

I, Becky, author of the Netflix Fan blog, have a policy of full disclosure regarding my agenda for this blog.

I have never accepted money or in kind payments from any person or commercial entity in return for writing positive things about them at Netflix Fan, or in return for writing negative things about any other person or commercial entity.

Netflix shuttle driver

I did a job search using keyword "Netflix" on Monster.com, and read the job descriptions. I found out that Netflix uses a shuttle driver to pick up and deliver their shipments to the "Postal Distribution Center".

Netflix Friends producing strange results?

Do you do this? Now that you're using the Netflix Friends feature, do you rate your movies differently, because you're aware your friends will be seeing your ratings? Cory Doctorow describes it in his article on "Metacrap" , how our self-consciousness affects how we rate things. The result is useless data.

I'm guilty. Because I am conscious of the influence I have when I rate a movie, I am very cautious about giving anything a five unless I unreservedly love and recommend it to everyone. I have very few movies I "hate" as well, because I'm conscious that I could be keeping people from watching it. Nearly every movie I rate falls somewhere in the middle between "watchable, but ordinary" and "very good, but not great"

Bitter over Blockbuster

This commentary, from BostonHerald.com, is a very amusing account of how one person is still bitter over paying late fees at Blockbuster: "years of abuse can't be erased with a quick kiss and a little gift, especially when they're only bestowed as a last-ditch attempt to fend off other suitors, such as Netflix and Wal-Mart. " Read the rest.

Tivo+Netflix partnership update

I gleaned the following insights from this Forbes article.

Tivo is all about the device, the digital video recorder, that you can use to obtain content, TV, movies, photos, from just about anywhere. Netflix is all about providing content, regardless of method of delivery. Nothing's happening with content right now, because Hollywood is still holding tight to it, reluctant to broadcast it in such a way that they lose possession of it.

Once Hollywood gets comfortable with the idea, Tivo will use Netflix as a content provider, and Netflix will use Tivo as a content delivery method.

In the future, content and delivery will be divorced. It won't matter what device you use (phone, computer, TV, DVR, mailbox), you'll be able to get the same content from anywhere (broadcast, satellite, cable, Internet, mail). Both Netflix and Tivo are in the process of building a brand, so when you think devices, you'll think Tivo, and when you think content, you'll think Netflix. Like Apple is now selling more iPods than computers, it doesn't matter what product they sell, as long as it has the Apple brand.

What is Apple like?:
-good at making things simple to use (Netflix, Tivo)
-innovative (Netflix, Tivo)
-makes killer products (Tivo)
-has loyal fans willing to pay a premium (Netflix, Tivo)
-uses proprietary software (Netflix, Tivo)
-is in competition with Microsoft (Tivo)

Blockbuster: still open to Hollywood Entertainment deal

via CBS Marketwatch

John Antioco, Blockbuster's chief executive, said in a statement his company is "disappointed" that Hollywood entered into a deal with Movie Gallery "without giving Blockbuster a fair opportunity to participate in the auction process."

Nonetheless, Blockbuster is evaluating what price it might be willing to pay to top Movie Gallery, including the termination fee -- as much as $27 million -- it would have to hand over if it breaks up a Movie Gallery-Hollywood transaction.

Read more.

Netflix Unveils Profiles(TM)

I especially like the family-friendly feature. You can make a separate profile for your children, which allows them to control their own queues, within limits you set for them.
via prnewswire.com:

Parents can use Profiles to control their children's queues by setting limits on the MPAA rating of movies that their children can browse and add to their individual queues. Parents can determine if their children's queues should allow G, PG, PG-13 or R movies. To assist parents, Netflix also launched its Select-by-Age categories, making browsing and selecting movies easier and more time efficient. Parents can search by age across 30,000 titles to select suitable entertainment for their children. Netflix offers five Select-by-Age categories: Ages 0-2, Ages2-4, Ages 5-7, Ages 8-10 and Ages 11-12. All kid-friendly movies, cartoons, educational programs and television shows available on Netflix are classified within these age-specific categories.

Read more

"Unlimited" rentals

When you sign up for an unlimited service or product, you expect to get exactly that. Is Netflix deceptively or falsely advertising a promise of "unlimited rentals" while knowingly and deliberately placing limits? I have reason to believe not. After researching and writing this blog for the past 10 months, I have not seen data or evidence of any systematic slowdown of service that cannot be explained by other factors, by understanding the nature of the online DVD business, the USPS, the laws of supply and demand, and the nature of information available on the Web. I do not rely on the unverifiable, anecdotal complaints by individuals on newsgroups or blogs, when it is not backed up by data.

Although there is plenty of information on my blog about how Netflix operates, here is a brief overview of the process: when you return a movie, Netflix scans it in as soon as they receive it. If your local distribution center has the next movie in your queue, you get a message that it is "shipping today". If they don't have it, the system will search for the disc at the next closest DC until it finds one in stock.

After the length of time it takes for all DCs around the country to scan in their discs, report this data to Netflix headquarters in San Jose, CA and process your request, your disc is prioritized according to factors such as these: is the disc number one in your queue? How long has it been in the number one position? How many other people have it in their number one slot? Is your number two disc available? How many "number ones" have you received lately?

It is conceivable that they occasionally receive more discs than they can possibly scan in one day, due to machine problems, unexpected fluctuations in usage, or staffing shortages. Tuesday is their busiest day, because most people return their discs on Monday, after the weekend. Seasonal or regional fluctuations in the number of subscribers cause each DC to experience delays as they adjust.

Netflix is not responsible for delays caused by the US Postal Service. The distance of the DC will determine shipping times. There's also employee or mail negligence or theft. If you experience this, you should report the loss to your Postmaster.

Netflix has more than 30,000 titles and more than 16 million DVDs total. On average, Netflix ships more than 3 million DVDs per week. When you're dealing with that volume, it is inevitable that some customers will be unhappy. Customer "churn", that is the number of customers who join, versus the number who leave, is less than 5% most of the time.

They estimate that 85% of us receive our discs the next day. That means 300,000 people are getting their discs two, three, or four days later.

I believe it is an unavoidable result of Netflix being a Web-based business, and the viral nature of the Web, such that one complaint can reach 100,000 people in one day, that problems seem much larger and more widespread, than they really are. Netflix is providing such a good service to so many people, that the vociferous minority is not as big as it seems.

If you continue to believe that you are being singled out for extraordinarily bad service, or that Netflix is deceptive in their practices, you should file a complaint with the Federal Trade Commission or your State's Attorney General. However, if you keep it all in perspective--the nature of the business, the factors outside anyone's control, and the nature of information on the Web--you will conclude that Netflix is not deliberately placing limits on your rentals, and is the best, most reliable, and most economical online DVD delivery service.

We listen, so you don't have to

If you've ever listened to the optional commentary track on a DVD, one of the special features occasionally available, you know that it can sometimes be boring and stupid, and other times, brilliant and entertaining. Well, now there's a site, CommentaryDVD.com, that reviews the commentaries for you, telling you which DVD editions and movies contain the best commentary, and by whom. You can search for commentaries by who is doing it, whether director, actor, historian, critic, whatever, or by movie title. Everyone should listen to a few commentaries, because it really helps you enjoy the movie all over again, like watching it with a friend who knows stuff. My favorite feature of the commentarydvd.com site is the list of commentary innovations.

Hat tip to Listology.com.

Bowen blocks Schwarzenegger nominee with abstention

Netflix CEO, Reed Hastings, has lost his position on the Board of Education of California.

via Daily Breeze: "By Michael Gardner
Copley News Service

SACRAMENTO -- South Bay Sen. Debra Bowen on Thursday defended her decision not to confirm the popular chairman of the state Board of Education, who had bipartisan support but had come under fire from Latinos for his positions on bilingual education.
Bowen, D-Redondo Beach, wound up the swing vote in blocking Gov. Arnold Schwarzenegger's nomination of Reed Hastings from advancing to the full Senate."

Read more.

Reed Hastings has politics

Journalist-blogger Chris Nolan says Netflix CEO Reed Hastings is a "big Democrat", in case anyone didn't know.

Blockbuster posts sharpest holiday traffic gains among online retailers

via InternetRetailer.com

Following its launch last July of an online DVD rental service, Blockbuster Inc. posted the sharpest year-to-year gain in online holiday season 2004 average weekly traffic—to 2.89 million unique visitors from 593,000, up 387%—among online retailers, comScore Networks Inc. reports. Walmart.com still led in total weekly traffic, with 10.55 million, up 68% from 6.28 million.

Read more.

Netflix isn't even on the list.

UGO's Top 50 DVDs of All Time

Underground Online's list of the Top 50 DVDs of All Time I believe this list was made by a committee of teenage boys.

Lexington, KY Area Blockbusters keep late fees

via the Lexington Herald-Leader:

Eric Walz, the owner of Lexington's 10 Blockbuster stores, is ignoring his parent company's nationwide advertising blitz and continues to charge customers a $2-per-day late fee. Don Whitaker, the owner of five other Central Kentucky Blockbuster stores, has taken a similar tack.

Read more.

cin-o-matic adds RSS

Cin-o-matic has added the option to syndicate your watchlist using RSS. If you're not using Cin-o-matic, I recommend you check it out. It's a useful tool for keeping an eye on when recent movies come out in theatres or on DVD, by making a watchlist. From your watchlist, you can add them directly to your Netflix queue.

Featured Competitor: Mentura.com

Mentura.com is a strictly family-friendly alternative to Netflix. They offer a 30-day free trial. Mentura features titles from the Discovery Channel, Disney, Imax, History Channel, A&E, PBS, Animal Planet, BBC, etc., comprising an inventory of about 12,000 titles. Membership plans are monthly or annual, 3-out (for $19.97 per month) or 6-out ($29.97/month). Also known as christiandvds.com. Sample categories include: Biblical, Children's, Christian Drama, Creationism, as well as genres like action-adventure, comedy, drama, etc.

100 Great Documentaries & Factuals

Kevin Kelly, of Cool Tools, has published a list, in booklet form, of his 100 favorite documentaries, what he calls "true films". You might question the truth of some of these, but you can get his complete list for free, online, or

buy his book.

Arthouse in your home

via CTNow.com: "Recently, with the well-publicized success of Netflix, there's been a proliferation of online rental services trying to create niche markets out of gaps in Netflix's catalog. Greencine.com claims a bigger selection of 'esoteric fare' than anyone else, while Cinflix.com, Nicheflix.com and eHit.com all specialize in foreign films, especially Asian horror movies and thrillers."

The rise of the DVD and online rental services has made it possible for anyone to be a serious film buff. It has revolutionized my own viewing of movies. Via Netflix and others, I have seen hundreds of significant films I would otherwise have never seen. You no longer have to live in Los Angeles, New York, or Chicago to see critically-acclaimed movies. You can have a film festival in your own home.

I've used Greencine and Nicheflix. They do have a good alternative selection to Netflix, but you have to be willing to wait. They each have only one distribution center, and only a handful of copies of each title.

If you don't mind buying them, Film Movement "will send you DVDs of films that are still playing, or have yet to open, in art houses."

Hollywood Video agrees to merge with Movie Gallery

Hollywood Video has agreed to be taken over by Movie Gallery. I think this is a good move. They are making money off the deal. They will avoid any appearance of a monopoly. Movie Gallery serves rural and suburban areas, mostly, and stocks alot of independent titles, so they will continue to provide a competitive alternative to Blockbuster. I have a Hollywood Video about .10 mile from my home and a Blockbuster 2 miles away. I was afraid I'd have two Blockbusters. Now I'll still have a choice.

Nashville Blockbuster franchise lets 'em suffer late fees

Rex Hammock, of rexblog.com, makes the switch: "The Blockbuster franchisee in Nashville (31 locations) has just created a new Netflix subscriber, me. They are one of the fine print exceptions to the 'only at participating locations' disclaimer on the 'no more late fees' Blockbuster advertising campaign." Read more.

New Profile Feature Launched!

When you visit the Netflix site, you'll have a new option to split your queue among your household members, by creating a separate profile for each person. They can have control over their own allocation of movies, so no more losing track of who rented which movie, and no more arguing.

"Assign Profile" Feature in development

Astute observer and blogger Mike Geary pointed me to this new feature which Netflix is apparently developing. If you move fast, you can find it yourself. Go to your account (you'll need to sign in), and click on "change shipping address". You might see the following FAQ's in the margin:


Mike describes it on his blog. This feature would allow a household or group of friends to share a membership. What do you think of this idea?

Update on Amazon

Found this quote today, from Jeff Bezos, head of Amazon.com, via Wired.com:

Q:"What about videos? Netflix says it believes you're going to enter their rental-by-mail business."

A:"Our policy is not to preannounce what we might do. But that is a business we know something about. One of the big costs here is that an extremely large fraction of those monthly subscription fees are used to acquire new customers. Amazon is well positioned to offer a low-priced service of high quality, and we wouldn't have to pay heavy marketing fees."

He's basically saying, We're poised on the brink of doing something, but I don't want to spoil the surprise.

Status report on Amazon.com

A reader recently asked the question of me, what's up with Amazon.com? When will they enter the online DVD rental market? Here's my reply. Amazon has never confirmed its intentions to enter the American market, but their UK division has a very limited online DVD rental plan available to UK residents only. That plan allows subscribers to have only two or three at a time, but with monthly limits of four or six per month. They have no late fees or due dates, and postage is free. Based on that plan, I'd say they are using the UK market to experiment with re-designing their business model from the ground up, rather than cloning Netflix's. There's alot of speculation going around, especially on investment sites like Motley Fool, regarding what Amazon will do, but no one knows anything right now. I'll post it for sure, as soon as I have anything.

Reed Hastings and the Board of Education

I've known for quite a while that Reed Hastings is on the California state Board of Education. This editorial, from the Santa Cruz Sentinel, outlines what's going on there:

"Apparently, Reed Hastings has ruffled enough feathers in Sacramento that his tenure on the state Board of Education could soon end. Hastings, who heads up Netflix, which has revolutionized the way DVDs are rented, is a Santa Cruz resident and outspoken advocate of educational reforms." Read more

5 million online DVD subscribers

This article["Video policy: Better late than never"] from the Boston Herald online, is about how the abolition of late fees at Blockbuster could cause them inventory problems. Not anything we didn't guess before, but for one little tidbit buried near the end: "according to Adams Media Research... nearly 5 million subscribed to a mail-order DVD service last year - such as Netflix, Blockbuster's own service or WalMart's". That's a figure I've never heard before. We know that Netflix claims only 2.5 million. Blockbuster has bragged they gained .5 million in six months. That's only 3 million. Does that mean Blockbuster has more, or is the remainder all Walmart's? Perhaps that figure is comprised of all online DVD renters combined. Quite a number.