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Trouble for Tivo and NetFlix Partnership?

lucabrasi999 writes "Well, things may not not be as good for the potential joining up of Netflix and Tivo as once thought. Herb Greenberg, of CBS Marketwatch has a commentary which hints that this deal may not be as great as it once appeared. Why? In short, distribution rights. It appears that Netflix may not legally distribute all of the movies in it's library via Tivo. As a side note, Netflix may also be feeling some economic pressure. It now forces all cancellations occur by phone, making it more difficult to cancel because of a long hold time."

38 of 217 comments (clear)

  1. Cancelation times by Therlin · · Score: 3, Informative

    When I called to cancel one of my units about two weeks ago, my hold time was approximately 4 minutes. That is not unreasonable.

    1. Re:Cancelation times by AKAImBatman · · Score: 4, Informative

      It's not Tivo that has the long hold times. It's NetFlix. From the summary:

      Netflix may also be feeling some economic pressure.

      Just an FYI.

    2. Re:Cancelation times by quitcherbitchen · · Score: 4, Informative

      NetFlix doesn't require you to phone in cancellations. I cancelled my membership yesterday with just a few clicks. I've never been a member of another subscription service (especially one with a free trial) that made it this easy.

      You don't even have to have all of your movies in befor you cancel. Just return within 7 days. I highly recommend NetFlix to anyone willing to pay $23 per month for movies.

  2. Uniform Consumer Code by stecoop · · Score: 5, Informative

    Netflix now forces all cancellations occur by phone

    Could some inspiring Business Major retort the Uniform Consumer Rights for us? Off the top of my head, which will not be a good verbatim translation, it states that:

    A cancellation of an order must be accepted as in the method original ordered in or in a manner that is faster in speed. Meaning that if signed up electronically than they have to accept an electronic cancellation or any means that would be faster. Like if I signed up via mail than if they have a means of electronic cancellation than they have to accept that too all the while accepting the mail as a cancellation method.

    1. Re:Uniform Consumer Code by AKAImBatman · · Score: 4, Informative

      Do you mean the Uniform Commercial Code?

    2. Re:Uniform Consumer Code by Anonymous Coward · · Score: 3, Insightful

      There is a simpler way; Update your credit card to the wrong expiration date.. Lack of ability to charge your card will cause them to cancel automatically. :-)

  3. All Your Base Are Occur By Phone by stevemm81 · · Score: 5, Funny

    It now forces all cancellations occur by phone, making it more difficult to cancel because of a long hold time.

    Wish someone would force all submissions occur after proofreading...

  4. Bummer for Netflix... by jmcmunn · · Score: 5, Insightful


    I had Netflix for a few months earlier this year, I loved the service, and when I decided to cancel for financial reasons, it was very easy. I just hopped online, and clicked a link. Then they told me I had 7 days to return my three movies, and we were done.

    For this exact reason, I planned on signing up again in the near future. But if they are going down the road of AOL, where you can only cancel by phone, after long waits and pushy sales reps, I may just go try Blockbuster Online instead, and see how it fares.

  5. Distribution Rights? by bludstone · · Score: 3, Insightful

    Boy, I sure am glad that copyright laws have so encouraged the creation of this wonderful science.

    Oh wait...

    Nevermind :(

    --

    no .sig
  6. AOL is the same way by Anonymous Coward · · Score: 5, Funny

    Yes, I'd like to cancel

    Really, why?

    Don't want it.

    But have you seen our super new optimized enhanced keyword system?

    Yes, don't like it.

    What didn't you like?

    I just want to cancel.

    We're just trying to determine why you were unsatisfied

    Perhaps it's things like this that make me unsatisfied.

    What exactly do you not like about the cancellation process?

    JUST CANCEL ME!!!!!

    1. Re:AOL is the same way by dasmegabyte · · Score: 5, Funny

      This is what you get when you outsource your cancellations department to a copy of Eliza.

      Incidentally, the most fun cancellation experience I've ever had was when I tried to cancel my Discover card. The guy made me an offer which was, honestly, very good, and I would have gone with it had I not already consolidated all my debt onto a different card. I told him I wasn't interested. He asks "Why aren't you interested in getting a better deal?" I said, "Look, I agree with you that it's a better deal. But now you're trying to sell me on it, and in the process you're making me feel stupid. I'd rather not do business with a company that tries to make me feel stupid, I'm just an asshole like that." I was cancelled and off the phone in fifteen seconds.

      Nowadays, you just gotta be rude, man. It saves you a lot of hassle. Being polite to phone folks is playing right into their hands. Fuck it, you'll never see or hear this guy again, insult him and his entire worldview if it gets him off your phone a little quicker. The sanity you save might be your own.

      --
      Hey freaks: now you're ju
    2. Re:AOL is the same way by hazem · · Score: 4, Funny

      I used to play a game called "cheerios" with my younger brother. I would sit on his stomach and hold his hands over his head - pinned to the floor.

      I would then say, "Do you like cheerios", hitting his sternum with my knuckle on each syllable.

      "NO" he might yell

      "Why Do You Not Like Cheer-E-Oos"?

      and so on, until I got bored with it. I had no idea I could apply this working for AOL!

  7. Cancellation by ckswift · · Score: 5, Informative

    It now forces all cancellations occur by phone, making it more difficult to cancel because of a long hold time."

    As a Netflix subscriber, I have a "Cancel Your Membership" button on my account page...

    -Chris

    1. Re:Cancellation by Binestar · · Score: 3, Interesting

      As a Netflix subscriber, I have a "Cancel Your Membership" button on my account page...

      As a netflix subscriber who can no longer afford the $23/mo for the service I have just cancelled my netflix account successfully in the My Account page.

      That said, it did offer a $3/mo discount on the next 6 months if I chose not to cancel instead. Might be worth it for people who can afford netflix.

      --
      Do you Gentoo!?
  8. The end of Netflix is upon us by MBraynard · · Score: 3, Interesting
    They are going to be beaten and beaten badly over the next six months due to several mis-steps and changes in the competition.

    1) Blockbuster is in the market. Same 3 movies at a time, same postage paid, ~$3 less a month plus coupons for two free movie rentals a month. BB has a larger library plus their instore stock.

    2) WalMart has also gotten into the game. Also cheaper than Netflix, I expect them to be the 'low cost' option by cutting their prices below BlockBusters.

    3) Netflix recently changed their price (increased it) while making postage free. The result is the join-and-forget customers who are a the best type of customer for them will now be prompted to cancel, leaving them with the habitual heavy renters who make the free postage an expensive decision.

    4) The clock is ticking against their entire business model as digital media delivery speeds accelerate.

    A positive sign is that they recognize #4 and were making an attempt to bridge the gap with Tivo. Unfortunately, it can probably be done better by TW and other cable providers.

    Still, I wish them the best of luck.

    1. Re:The end of Netflix is upon us by The_Rippa · · Score: 4, Informative

      Not true...

      1. Netflix is actually a few bucks cheaper than Blockbuster and Blockbuster certainly doesn't have the same inventory.

      2. WalMart won't have the same selection either.

      3. Hasn't postage always been free?

      4. This is true.

    2. Re:The end of Netflix is upon us by fnord123 · · Score: 3, Informative
      I tried Blockbuster and Walmart over the last couple months and have had Netflix for over a year.

      Netflix has a closer warehouse to me, and more warehouses overall - this usually resulted in my getting a new movie every 3 days vs 5 for BB and 6 for Walmart. Advantage: Netflix

      When Netflix received a DVD (and sent me an email), they would send me a new one on the same day, every time. When Blockbuster and Walmart received a DVD (and sent me an email), they often would take another full day before sending out the next one. Walmart was the worse of the three. Advantege: Netflix

      The Netflix website is more user friendly imho. I don't have to login everytime ("save my act info" didn't work correctly on BB or Walmart with Firebird at least). In Netflix when I renumber a couple of movies at the end of my queue to 1 and 2, they show up as 1 and 2. In BB, they would show up as 1 and 3 (because the "new" 1 displaced the "old" 1 to 2, and the new "2" was relative to the the old "2" I guess). Netflix search functions where better as well. Advantge: Netflix.

      Netflix has a much broader library than either of the others. Lots of movies only found in Netflix. Advantage: Netflix

      Netflix has a much deeper library than either of the others. Lots of movies on my BB and Walmart list showed up as "long wait" etc. The same movies on Netflix where "available". Advantage: Netflix.

      Summary: I cancelled BB and WalMart and stuck with Netflix. The other two are also-rans at best.

  9. hold the profits by Doc+Ruby · · Score: 3, Interesting

    Long hold times at profitable companies are balancing their books on your free labor. Customer service is a collaboration between customers and the service providers. It's impossible to predict exactly the number of callers in a given hour of business, so avoiding any holding by callers means having extra answerers available. Since most problems are handled within a script by otherwise untrained answerers, a surplus of answerers is a simple expense at an outsourced call center, standing by with multiple companies' scripts at the ready. When callers don't immediately get an answerer, that's revenue not spent on the call center. Without the call center expense, that's profit. The time we wait on hold is zero productivity labor time spent by the customer that is counted as profit by the nonanswering company.

    --

    --
    make install -not war

  10. Re:Other Services by vondo · · Score: 5, Informative
    I was with Netflix for three years. When they changed my old, sweetheart deal ($28/six movies/month) to $35/five movies and Blockbuster came on the scene, I jumped ship. But, I just signed up for BB yesterday, so no real experience yet. So far, I can say the web site is not quite as slick, generally (not that Netflix was especially good) and the selection isn't quite as good either. (They are missing Futurama seaons 1&2 for some reason).

    With being gone for a while and a two week BB test period, I figured I can't lose. Also, I like the idea of two in-store coupons/month from BB. (It was always the selection that kept me with Netflix, not the pain of a local store.)

  11. I was kind of wondering... by the_skywise · · Score: 5, Interesting

    how NetFlix was going to be allowed to basically do P2P distribution of movies... even if it was completely secure and paid for. The Publishing houses (Disney, Paramount, Choam, Fox) go to great lengths to control their content viability. Especially Disney which cycles content in and out of the market to keep demand as high as possible. A download library like Netflix would take alot of that power to create market-hype out of the hands of the publishers.
    (Though I still think it's a cool idea and properly setup could work around those concerns...)

  12. Re:Hmm. by Fishbone · · Score: 5, Funny

    Just a quick observation--you say you don't pay for TV, yet your sig is from a CABLE TV program. I can't decide whether to jack your credibility or call the cable office first.

  13. Re:Hmm. by garcia · · Score: 3, Insightful

    Suckas. Over the air radio and TV is still freeee as in look at all the money I didn't spend today.

    You are watching ads like a motherfucker. I consider that a shackle myself. You are also watching 8 channels (that's as many as I could get w/the fucking rabbit ears I had for a year and a half before I went w/DirecTV) of snow/infomercials. Hell, two of the eight stations were shopping channels and one was a relgious network. Mmmm, five channels of snow.

    Fox and UPN were the only two channels to really come in. They are worth it for ME as I like the shows they carry.

    Tivo makes TV really fucking enjoyable. I'm up to 15 seaons passes. I don't even think about watching Live TV anymore unless my Tivo'd shit is all my fiance's stuff and then I am more likely to surf the net or do something outside.

    I won't even get into OTA Radio and what you put up w/RIAA bullshit there.

  14. Netflix cancellations by phone by Anonymous Coward · · Score: 5, Informative

    The cancel-by-phone only rule must be pretty new, because I cancelled my Netflix subscription *yesterday* (9/8) using the web interface. Took all of two clicks.

  15. Re:Hmm. by stratjakt · · Score: 3, Insightful

    That's $5 more than I gave 'em.

    Your 5 bucks will pay for what, about enough envelopes, letters, and stamps to send out about 10 more extortion threats?

    And they can keep their advertising revenue stream, I wont begrudge them that. They may have my eyes and ears, but they don't have my dollars. They don't have my attention, either.

    Radio isn't as bad as you think. There are still long commercial free blocks of music. Music is just background noise to me anyways, all the copyright tantrums and handwringing have killed the artform for me.

    And all that "overlayed crap" I see is on cable channels, not the free-to-air ones. Isn't it odd that you pay a monthly fee, get the same amount of regular commercials on channels you pay extra for (like HBO), and ON TOP of that, they pop little ads up over the content you payed for?

    All the local air stations around here do is pop the station logo up once every hour, or however often they're required by law to do a station ID.

    --
    I don't need no instructions to know how to rock!!!!
  16. I'll cancel my NetFlix... by javaxman · · Score: 4, Funny
    at the same time I cancel my Tivo service.

    When they pry the remote out of my cold, dead hands.

  17. Netflix is getting slow... by ARRRLovin · · Score: 4, Interesting

    ...on purpose.

    If you ever get an email asking how long it took for you to get a specific movie, *never* under any circumstances tell them you received it early. They will stall shipment of future movies to make sure you're not getting more than they think you should get per month. They've been getting worse and worse about this.

    --
    -Randy
    1. Re:Netflix is getting slow... by koreth · · Score: 3, Informative

      Not my experience. I've been a Netflix subscriber since 1999 and, aside from the fact that they removed the "I've sent this movie back, send me the next one now" button, I haven't seen their turnaround time getting any better or worse over the last five years. If I put a movie in my mailbox on Monday morning, I nearly always have the next one in hand on Thursday or Friday.

    2. Re:Netflix is getting slow... by linuxlover · · Score: 3, Insightful

      Damn right!
      <p>
      I have learned this lesson the hard way when I answered couple of 'survey' emails. I thought, 'Gee they really care about when I get the movie'. When ever I said I received them on the right date, then my movies will take 1 day extra to arrive.
      <p>
      I waited till the next survey and answered 'came a day late'. Movies have been prompt ever since. And I never bothered with the survey again.

  18. Mod parent +1 RTFNetflixpage by PCM2 · · Score: 4, Informative

    He's right. You click on the "Your Account" link, which takes you to a page that lists your current rental status and tells you your current package, i.e. "Three At a Time Plan." Next to that are two links, one that says "Change" and another that says "Cancel." If you click "Cancel," the first bulletpoint on the next page reads, "Cancellation will be effective immediately." All you need to do is check the "I understand and agree" box and submit the form. Who told you that you needed to call by phone?

    --
    Breakfast served all day!
    1. Re:Mod parent +1 RTFNetflixpage by Mike+Hawk · · Score: 3, Informative

      Yet you were more than willing to fan the flames without actually checking the facts for yourself. Such is the way of the internet I suppose. Rather than placing blame, you should apologize and the article should be amended.

  19. Hold time? by jdavidb · · Score: 3, Interesting

    If they're billing my credit card, and I want to cancel, and they make me jump through unreasonable hoops, I just won't. My credit card company will happily take my call and my instructions that any charges from Netflix are fraudulent because I have notified them in writing or using any means I choose that I am no longer a subscriber to their service. Then if Netflix wants to make a big deal about it, I'll bet they'll take the call from my credit card company.

  20. You are in charge of your money by dgenr8 · · Score: 3, Interesting

    How to cancel, quick:

    Tell the first person you speak to that you are cancelling your service immediately, and that you have informed your credit card company to refuse all future charges. It's up to them whether they want to update their systems with the cancellation now, or spend 3 months trying to contact you in hopes that it was some kind of mistake, while you continue to use the service.

  21. Read the fine print by eberry · · Score: 3, Informative

    I can't find it now, but Walmart's site specifically stated that you would be charged for any DVDs lost in the mail. Where as Netflix absorbs that cost.

    And as for Netflix, you can still cancel and restart your membership online.

    --
    Whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa, whoa. Lois, this isn't my Batman glass. - Peter
  22. Where did the phone rule come from by lightdarkness · · Score: 5, Insightful

    Right from netflix website... Can I cancel anytime?
    Absolutely. You can easily cancel your membership anytime, online, 24 hours a day. There are no cancellation fees. To avoid being charged after your trial, simply cancel your account before the trial ends.
    No clue what that guy is talking about...

  23. Actually, we'll know they are really failing. . . by Sialagogue · · Score: 4, Interesting

    . . .when they add porn to their lineup.

    No, seriously.

    --
    The only acceptable defense of scientific results is to say that they were the product of the Scientific Method.
  24. Problem with Tivo and Netflix by hipsterdufus · · Score: 5, Insightful

    1) Only s-video video output
    2) Only stereo audio output

    I rent movies because I can view them using the DVI output of my DVD player and the optical audio output to the 5.1 reciever. The Tivo is not quality audio or video capable, so I'd never use this service in the first place.

  25. more to it than price by poptones · · Score: 3, Interesting
    I don't know where you live, but where I live there still is no cable tv, and the phone lines often run for miles through the country before they get to the phone router on the highway. The only hope here for broadband is low-band wireless, and we're still years away from that. Unless the government decides next year to subsidize wireless with a TVA-like plan through rural america, something tells me netflix has at least a decade or two of life left in their current business model.

    But I have noticed netflix is starting to slowdown in response time. My turnaround time with them is generally 1-2 days - sometimes it's just a few hours (get it in the mail, rip it to my hd, stuff it back in the post office box). For a while there I could get three new movies every week quite reliably, but now they've started playing games: I'm sure the movies don't take any longer to come and go, but instead of three days each way it's becoming four and five and even six days from the time I send in my movies until I see the next "arriving soon" notices in my email. At this rate I'm going from "about 12 movies a month" for $23 to maybe 9 and possibly as few as six. Given that I mostly rent foreign and old scifi releases (the 99 cent stuff at most stores) this is not a very good deal.

    I hate the long drive and the selection isn't nearly as good at the "local" (40 miles) movie gallery, but I can rent five movies there for five days for only about six bucks - and two disc sets don't count as two discs, but one rental. That's half the netflix rate just for the inconvenience of stopping off at the rental place twice a week.

    I hope to see wal-mart fire up the competition soon. Competition is a good thing :)

  26. Reality check by Anonymous Coward · · Score: 4, Informative

    1. When Netflix receives a disc, more often than not they ship the next disc the same day. Look at your queue page or read your e-mail. The date they sent the disc is right there. You can compare the date you got it with that date and know that that was the post office transit time. On occasion, they fill your order by shipping you a disc from another hub. When that happens, it takes an extra day, plus whatever extra time the postal service takes. They do this to shift inventory to match a demand shift. When it happens, your queue page keeps you informed.

    2. You can still cancel online. Any suggestions that you can't are nonsense.

    3. Negotiating rights will be part of any electronic distribution venture, regardless of what companies are involved. Everybody in the business knows this. Nobody would be proceeding with any ventures of this sort if they didn't have a plan for it.

    4. Your answer to a delivery survey does not affect your account in any way. Others have speculated that the rate at which you turn discs around has an effect, but see #1 above. They ask about delivery time so they can figure out when and where they need to open a new shipping hub.