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Netflix vs. DirecTV Cinema

Discussion in 'DIRECTV General Discussion' started by Filibogado, Apr 3, 2010.

  1. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    I see your point...yes. But I still contend that NetFlix still has a huge business risk executing the "get it back whenever" policy. Turn out the lights...the party's over.... :D
     
  2. tonyd79

    tonyd79 Hall Of Fame

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    Uh, Blockbuster is STILL doing business this way. They have not discontinued mail service. What they are closing are their brick and mortar stores, which are losing money.

    http://www.blockbuster.com/browse/queuemgmt/fullQueue

    Want to try again about what Blockbuster does and doesn't do.

    What Blockbuster tried was no return date on rentals but they got the same amount of money for a nightly rental as they did for 4 weeks. When a consumer sat on a movie, they were renting it for a lesser and lesser price per day as the time went on. So, with the Blockbuster model you are mis-citing, it was to their benefit if movies were returned.

    Netflix is a service that the daily rate stays the same if you have 1 movie for a month or 6 movies for that month.

    Why? Just because you keep saying it is not good business, you have yet to give a reason. The only sort of reason you gave was that they don't know what their inventory is but Netflix probably knows their inventory better than any other mass market business.

    You say it is good for the consumer. It is, to a point. Many Netflix customers sit on DVDs for a month or longer. That is not cost effective for the customer because they pay the same fee if they hold that one movie or flip 2 to 3 per week. Holding onto the movie longer actually saves Netflix money so what you say is not good business actually returns a larger profit. You have an odd definition of "not good business sense."

    The real issue Netflix faces in the future is the delivery mechanism, not their pricing policy. As streaming increases, it is even cheaper for them to use and competition could drive them out, but, guess what...Netflix is a the forefront of streaming, too.

    Odd that a business you keep bashing by just saying they have bad business sense is doing a bang up job of staying on the edge of the wave, first by changing how folks got DVDs (and helping drive Blockbuster out of business) and now on the streaming front.
     
  3. tonyd79

    tonyd79 Hall Of Fame

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    What is the risk? Explain it, if you can.
     
  4. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    Since you want to pit nicks...

    They actually changed that model 3 times in 6 months in 2009....and again once in 2010 to where it is now. In the past, they tried the "return whenever" model too.
    Uh...I said having choices was good for the consumer.

    I'm guessing NetFlix is less concerned anyway with mail rentals and focusing their efforts and strategy on streaming for the foreseeable future.
     
  5. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    First of all...nobody's "bashing" anything...

    Second....the mailing costs might be reduced, but so can the out-right loss due to damaged and lost inventory. Simple really.

    Third....you seemed to conveniently miss multiple posts that specifically referenced the desire for them to succeed. Just because they are successful at the moment, it doesn't assure future success. They have to adjust and improve their service regularly. THAT was the whole point you seemed to miss, and the one Blockbuster totally missed.

    So let's move on... I have a streaming NetFlix to watch tomorrow.
     
  6. tonyd79

    tonyd79 Hall Of Fame

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    You keep equating the models when they were not the same.

    Blockbusters return whenever model didn't give them a revenue stream. You rented a movie for a standard 3 day fee but you could keep it forever WITHOUT ANY FURTHER INCOME.

    Netflix you pay per month if you keep one movie or not. The money keeps coming in and coming in and coming in.

    If the BB fee was $4 and you kept the movie for 2 months, they got $4 and you held up their inventory at that store (limited). You return the movie, transaction is over until you decide to rent another.

    If you pay $9 a month to Netflix and keep a movie for 2 months, they get $18. And their inventory stays the same relatively because their deal is that you get a movie all the time, even if it is the next one. You return a movie, they send you the next one.

    The BB brick and mortar keep the movie until whenever was stupid because beyond the first three days THEY GOT NO MONEY. Netflix continues to get money if you keep that movie or get a new one. They WANT you to keep it because it drives their costs down for the same amount of income.

    You are comparing two diametrically opposed methods of doing business and claiming that one proves the other doesn't work.

    Well, Netflix has been GROWING for 13 years with what you call bad business.
     
  7. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    The key points have absolutely nothing to do with the brick and mortar Blockbuster aspects.

    Round and round - the circle is now complete.

    OK. Thanks.
     
  8. tonyd79

    tonyd79 Hall Of Fame

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    You want to move on because you have no argument.

    Uh? Longer rental times mean higher loss cost? HUH? Not when they keep movies out no matter if you return them or not. Movie A is out. It comes back, Movie B is sent out again. The majority of their losses are from MAILING. You just gave another argument IN FAVOR of keeping movies out longer from a Netflix point of view. Fewer mailings means fewer movies lost. Damage per unit of inventory is going to be the same if it is one movie or another. Who cares if it is Gone with the Wind or the Goonies that gets damaged.
     
  9. tonyd79

    tonyd79 Hall Of Fame

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    BS. Blockbuster's financial woes were (and continue to be) Brick and Mortar.
     
  10. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    Uh huh...OK sir.

    Fact is it had everything to do with a large successful company not making changes in policies, practices, and business decisions fast enough. That also has the potential to apply to NetFlix, unless they respond.

    I hope they make the right choices...then we can both be happy with their survival. Thank you very much.
     
  11. Rich

    Rich DBSTalk Club DBSTalk Club

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    You get what you ask for in a timely manner, their inventory methods seem to be beyond reproach, their CSRs have never failed to be polite and have always solved my problems, small as they were. What more could you possibly ask? D* could learn something from the way NetFlix operates and treats it's customers. I've never had a problem with them that hasn't been resolved with one phone call.

    I really think the reason they are going to more streaming must be the fees they pay for postal delivery and return. I see absolutely no reason to criticize any aspect of their business model.

    Rich
     
  12. Rich

    Rich DBSTalk Club DBSTalk Club

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    To put it crudely, but perhaps more understandably, I thought Blockbuster sucked. I don't see anything "sloppy" about NetFlix at all. If I had any problems with them, I wouldn't have two accounts for eight DVDs at a time.

    As much as I have enjoyed D*, they have lied to me, supplied me with terrible equipment, argued with me for no discernible reason, allowed horrible installations, wrecked some of my equipment with bad downloads, the list goes on and on. And before anyone asks why I stay with them, they are the best of a bunch of poor choices, in my opinion. All that said, they have always received my bills on time and have no complaints with me. When comparing the two services, NetFlix is the winner. A better run company, a model for the future.

    Rich
     
  13. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    I'll give ya point one....no doubt they didn't do it right, and lost out accordingly.

    With NetFlix having all its eggs in one basket, I disagree on the better run company....its a simpler model with less opportunities for the future.

    If NetFlix is betting the whole enchilada on streaming...and a clear trend toward bandwidth controls and ceilings...they may grow hungry down the road.

    Alot is very unpredictable in the content market these days.
     
  14. Rich

    Rich DBSTalk Club DBSTalk Club

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    That's really up to you. I've been watching TV series for months, and am presently watching CSI: Miami. It's very interesting to watch a series evolve. I don't get that many movies from NetFlix, but I suppose I'll run out of old TV series to watch sometime in the future and then I'll have to reevaluate my NetFlix subscription. But, by that time, NetFlix will be mostly a streaming service and I already have about 10 streaming devices in the house that provide better PQ than D* does at a fraction of the cost. Things are changing faster than I expected, as witnessed by this thread.

    Rich
     
  15. raott

    raott Hall Of Fame

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    If bandwidth ceilings come in to play, the ONLY companies what will be able to thrive in a streaming VOD business model are cable/fios companies --- not D*, not Dish nor Netflix, Amazon, Apple, Blockbuster etc who are all dependent on cable for delivery.

    If cable institutes caps, they will have a clear competitive advantage over both D* or Dish. However, with that said, IMO, even if caps are in place, there will always be a tier with unlimited access.
     
  16. Rich

    Rich DBSTalk Club DBSTalk Club

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    And terrible management decisions.

    Rich
     
  17. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    really?

    So if you can only download certain quantities of content per month...that won't impact streamed services...hmmmm...interesting....but also totally wrong of course. Also, there will likely indeed be that "top tier" for bandwidth...just almost no one willing to pay for it.
     
  18. raott

    raott Hall Of Fame

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    I have no idea what you are reading but that is not what I wrote. In fact, it is completely opposite of what I wrote.
     
  19. hdtvfan0001

    hdtvfan0001 Well-Known Member

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    So you assume I'm debating your point???...or perhaps maybe it was agreeing/confirming it...it happens.
     
  20. raott

    raott Hall Of Fame

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    You put a "really?" right before your paragraph.

    I dont think anyone with an objective view would believe you were agreeing with what I wrote. You misread what I wrote, period.
     

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