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Netflix Throttling Heavy Renters
dankinit writes "Netflix has begun using a 'fairness algorithm' that slows shipments of movies to heavy users to protect profits, according to an MSNBC article. Netflix revised its terms of use in January 2005 to read, 'In determining priority for shipping and inventory allocation, we give priority to those members who receive the fewest DVDs through our service'. Since revising this policy last year, more and more users are realizing 'heavy renters are more likely to encounter shipping delays and less likely to immediately be sent their top choices' according to the article."
Netflix did this to me. When I contacted customer service to ask why movies were suddenly taking so long to arrive, they sent me unrelated generic responses and then blamed it on the postal system. I finally sent them this email:
"Thank you for the response. It does not address my question. The problem is not with the transit time; it is with the processing time at Netflix. When I ship the DVDs back, they get there in one day. Then there is a period of 5 to 6 business days before the next DVD is shipped to me. Once it is actually shipped, it arrives in one day. I recently had to rent a movie from Blockbuster because Netflix took so long to process my DVDs. Netflix has wide selection, but I am becoming frustrated with the generic customer service responses and the lack of service in general. Please send me a real reply."
and they replied with this one:
"Thanks for your inquiry.
What titles are you referring to specifically? Rentals process within one business day from the time we receive a return.
We process nearly 100% of returns the same day we receive them. When we check-in a return, an e-mail is automatically and promptly sent to you to let you know that we have received your DVD.
Our goal is to ship you the DVDs listed highest in your Queue. We try to ship you DVDs from the distribution center closest to you so that you get movies quickly. Often, on the same day that we receive a DVD from you, we will ship the next available DVD from your Queue. In certain instances, your next available DVD will not ship until the next business day following our receipt of your returned movie. This can occur, for example, when your top choices are not available to you from your closest distribution center or the number of shipments to be processed by the distribution center on that day has been exceeded. When this happens, your DVD will ship on the next business day and may come from an alternate distribution center.
If you have any further questions or concerns, please feel free to contact us.
Thanks,
Scott,
Netflix Customer Service"
Blockbuster also does this - basically, if you send 3 dvds back - even in the same envelope, blockbuster will "receive" 2 at x time and then "receive" the other one later.
We aren't stupid, so we can see that this is clearly bulllshit on their part.
As a result, you'll only get 2 dvds shipped out that day, and a third will ship a day later. That said, blockbuster is really forgiving about missing dvds (damn post office lost 15 or so in a couple months)
BTW if you want a free month with blockbuster and have had their service for a while (3 months in my case), go to the cancellation page and they will give you a free month or two.
Not sure what netflix does for customer retention, but I'm sure it is something. The legal settlement with netflix is a joke, btw (google for details)
Also, for those with "long delays" for certain movies under netflix - try killing your queue and re-adding the delayed movie. Theory is that they have to send you something and you should get bumped. Of course, this does kill your queue...
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I'd love to walk to my local video store (really), but...
-The closest video store is about 7 miles away. The closest real video store (not just one wall of videos) is more like 15 miles away.
- Said video store does not carry old silent movies, current documentaries or eclectic TV shows. Which, interestingly enough, is what I'm interested in.
I'm unhappy that Netflix is doing this, but it does pretty much provide me with a relatively unique service.
Ack!
Give 'em a ring.
1-888-638-3549
1-800-290-4518
M-F 6AM-7PM, Sa-Su 6AM-2:30PM
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I wonder though if my habits screwed everyone...my general netflix usage is DVDShrinking the disc as soon as I get it (my mail gets delivered about 2:00pm) and then walking it down to the Post Office for the 5:00pm outgoing mail collection. I've wondered if this sets off any flags, and I guess it does. I think maybe I'll throw a 24 hour delay into there.
My Bad.
Nothing great was ever achieved without enthusiasm
Analysis of Netflix's DVD Allocation System - "Netflix uses the number of movies you have previously rented to determine your priority in getting movies. The more movies you rented during your last billing cycle, the less chance you have of receiving a movie versus an individual who has rented fewer movies. This is why new users have great success getting their movies and older or heavy users have a difficult time getting some movies."
As long as a contract is well understood by both parties and voluntarilty entered into, it's fine.
I don't suppose you RTFA and discovered that they denied it for months after they'd been doing it and only changed the terms of service after a lawsuit was actually filed, which they offered $2.5 million to settle?
KFG
As long as a contract is well understood by both parties and voluntarilty entered into, it's fine.
For existing customers, it's a simple bait-and-switch tactic. Offer one thing, deliver the other.
For new customers (or those who are actually informed of the choice and consciously agree with it) the new contract is basically, well, not understood. A contract is a promise to do something in return for something else. The something else is clear; you have to pay netflix money. And in return? Well, they won't say you will get anything. Not guaranteed.
Of course, people were already getting delays, so what's changed isn't what you're getting. But it's the fact netflix doesn't say they want to even make the effort anymore. They promise... nothing.
That's not a contract. That's a lottery.
Seeing as they're called "netflix" and not "loan-a-dvd lottery co." I'd say they're trying to pull a fast one.
SCO employee? Check out the bounty
It does look damn suspicious for a guy to turn around 3-5 movies a day and honestly claim he's NOT pirating them and just shipping them back as soon as his DVD ripper is done grabbing the movie. I'm sure there's a small percentage of legitimate people out there that really do nothing else all day but watch movies from sun up to sun down and they don't have cable or satellite, but they're few and far between.
In both the US and Canada, I've met bus drivers (mainly in their 50's) who would work long hours all week, and then rent a stackload of videos so they could spend the entire weekend indoor watching films from dawn to dusk without going outside - driving in traffic for five days was enough of the outside world for them.
Vintage computer adverts: http://www.vintageadbrowser.com/computers-and-software-ads
I guess "screwing over people who watch a lot of movies" is one of their "improvements" that they've made.
I'd like to gently disagree with the article and with the parent poster because this is something, I believe, that Netflix has been doing since day one. I'm guessing, though, that now they either have a auditable trail (e.g. software) or for other reasons they are formalizing throttling frequent renters.
In 2002 I began a Netflix subscription which back in those days came in one all-you-can-watch for about $20.00 (iirc). I watch movies sometimes three at a go because it is a professional interest of mine and, well, I love film. So, for my first couple of months, I was watching maybe 12 films a month.
My third month or so, I stopped getting DVDs. I checked my queue and discovered they'd not received the DVDs I returned. After 2 weeks, I reported the DVDs missing even though, by gum, I knew I had sent them back. My queue resumed and when I returned the 5 DVDs within one week of viewing them the USPS mysteriously failed to deliver those, too. While considering reporting these lost DVDs to the US Postmaster, I came across an article in WIRED explaining how Netflix loses money on frequent renters: "Some subscribers rent twenty or more. (Which is a problem: Netflix loses money on postage for households that rent more than five a month.)" (emphasis added).
That told me all I needed to know and I cancelled my Netflix subscription. Occam's razor is here inadequate since it would suggest that the DVDs were in fact getting lost in the mail. But I had been using the USPS for objects large and small for 20 years by that point and not a single piece of mail had ever been lost either coming to or going from me. And I'm supposed to believe that somehow, of all the mail I send, that only my DVDs to Netflix get lost?
Netflix is a company like any other in that it wants to make a profit. However, in 2002 they engaged (I believe) in unethical business practices to protect their bottom line rather than, for example, simply billing renters for postage overages. Netflix will never get any of my money ever again and when Internet distribution finally kills them, I probably won't care enough to tell this story again.
blog
Face it, they're just trying to slow down the DVD pirates
Made up facts sure are convenient, but that doesn't make them true. More likely, what Netflix is doing is trying to reduce their shipping charges by taking steps to limit their advertised "unlimited" movie rentals per month. Both are speculation. Which one is more likely?
It does look damn suspicious for a guy to turn around 3-5 movies a day
I suggest you look at the data at the Netflix Queue Tracker. People are apparently getting throttled for getting as few as 6 movies per month. That's a little less than the 90-150 movies per month you're quoting as being suspicious.
the DVD pirates are turning around 10-15 discs a week (or more).
Where in the world are you getting these numbers? I challenge anyone to turn around 10 to 15 discs a week (or more) with Netflix. Maybe if you're on the 8 at a time plan, this might be possible. With the three at a time plan, you're lucky to turn over 6 discs a week. That's assuming you're not being throttled at all. Is it unreasonable to speculate that someone that doesn't have cable and doesn't watch broadcast TV might watch one movie per night? (and even take off a night every week!) No, they must be a pirate.
I'm a big tall mofo.
Scouring the net to try to learn what I could about their throttling practices, I found the following site: "An Analysis of Netflix's DVD Allocation System"
http://dvd-rent-test.dreamhost.com/
It contains, by far the best information I could find regarding throttling. It includes enough data to actually draw reasonable conclusions about some of the thresholds that netlflix uses for limiting rentals. It has allowed my to adjust my use to almost always get sent new releases.
Now, don't get me wrong, I can understand their concern over piracy/copying, but lets look at the big picture here: How many of Netflix subscribers rent 3 to 5 movies per month (or less). They are making big bucks off these folks (just like most "buffets" do).
There are new companies out there now like Redbox that are starting to gain marketshare. And, for those who mainly watch new movies, it is probably a better choice than Netflix. And, right now you can get a lot of free movies from Redbox if you have one nearby (checkout the link above).
So, just as video stores started to lose to Netflix, I believe Netflix will start to lose to these local kiosks.
What will the future hold? Imagine going down to the local McDonald's or supermarket, and sliding your card at the kiosk, and it will burn the movie you want to see on the spot. And, when your done with it you will either have to return it, or it will "self-destruct" after 24 hours...
Read this, please.
This is just the latest instance.
A useful link to add perspective on this story. This guy has been following Netflix, their practices, and their industry for some time. Of note is his opinion and the fact that renting from Netflix is still a good deal even if you are throttled. http://www.hackingnetflix.com/ Thanks to The Economist for pointing me to this site in a somewhat prophetic manner.