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Netflix Users Experience Paradox of Abundance

prostoalex writes "The deal seems to be rather simple — you pay a monthly fee, receive a certain number of DVDs, and as soon as you watch them, and send them back, there's more coming. This simple model made Netflix into a $1.4 bln company, but now, Wall Street Journal reports, some Netflix users are experiencing the abundance paradox — the movies arrive, collect dust on the customer's desks, and then are sent back for the new set of movies to face the same fortune. From the article: "'It's a paradox of abundance,' said Siva Vaidhyanathan, a professor of culture and communication at New York University. If people aren't pressured to see a movie in a specific time frame, he said, viewers tend to put it lower on their priority list. 'When you have every choice in front of you, you have less urgency about any particular choice.'"

16 of 432 comments (clear)

  1. Reminds Me Of Columbia House Record Club by ackthpt · · Score: 5, Interesting

    I know, I'm showing my age, but back when I was in my first year of college I fell for the 10 albums for 1 cent ploy of Columbia Record Club. I paid my couple of $ for the 14 records (you get 10 for one cent, another for putting in some code and for a dollar a piece two more, at the time) and found how they worked. By purchasing you agreed to buy so many records over a two or three year period at "regular prices" which tended to be a bit more than at the local record store. They also sent out, based upon your choice (something Amazon and everyone else tries to do in the decades since) what their computer recommended, which was invariable exactly the music you didn't want, like some universal law, so you had to send back or pay for.

    Now Netflix doesn't work exactly that way, as far as I know, but stuff coming in like clockwork isn't the way my tastes for music or film are sated. On impulse I'll suddenly whip out and buy an Etta James collection, because I like some tune she sang back in the days of yor or I'll buzz down to the Bijou and check out Superman Returns From Wherever He Buggered Off To, but I don't do these with any chartable frequency. I tend to buy music, DVDs or old radio plays to listen to on trips or when I feel like it. Having stuff come in on a robotic schedule just isn't going to work, no matter how good the deal.

    --

    A feeling of having made the same mistake before: Deja Foobar
  2. Netflix limits users. by CogDissident · · Score: 5, Insightful
    Did you know that users of Netflix who continually use their limit of what they pay for for access get the speed at which they receive movies limited?

    Several friends of mine, as well as myself, have noticed that you can get movies rather quickly for the first two months or so, but after that the pace slows down. When the time between you shipping a movie out and getting more back starts at 2-3 days, but then gets extended to a full week, the difference is noteable.

    The point is, this "paradox of abundance" only exists for the few people who don't use what they pay for, people who honestly want abundance get screwed over by design.

    1. Re:Netflix limits users. by Rob+T+Firefly · · Score: 5, Insightful

      That's right up there with broadband ISPs throttling the quality of service for users who dare to run a filesharing client or (gasp) a traditional server, even so simple as an FTP folder. You have unlimited speeds on paper, but in practice you end up forced back into the predetermined "average" use in order to keep the ISP's costs of providing the service to the general public down. Sort of like the old chestnut about how the phone network would crap itself if everyone on the system tried to make a call at the exact same time, it's not designed to handle 100% use.

    2. Re:Netflix limits users. by hal9000(jr) · · Score: 5, Informative

      As a netflix users, yes, I can attest to the throttling. My wife and I had a feeling that was happening before I read the stories on /. We rent TV series on DVD and we easily go through 10 disks in a two weeks, thereby hitting the limit quickly. They slow down service by not acknowleging returned disks (it takes 2 business days in the beginning of the month and over 4 busniess days in the latter part--all being returned to the same local address. Oh, and for the official gobbeldy-gook, go here http://www.netflix.com/TermsOfUse?hnjr=8#how and scroll down to Allocation. They don't make throttling a secret. The result of giving priority to low renters is slowing down top renters. Nevermind that top renters tend to go through DVD fast thereby keeping a scarce resource in circulation. Oh, what I would give for an on-demand digital medium. I would gladly use it, DRM be damned.

  3. Why does the headline cast this in a bad light? by 7-Vodka · · Score: 5, Insightful

    Sorry but if you think something is a negative effect, you should come right out and explain why instead of implying it.
    In this case I think that it's a good thing(TM). Now that there's no percieved scarcity, people are free to watch what they want only when they actually want to. I've experienced this with music and movie downloading as well as netflix. Sometimes I go through periods of watching/listening to these and sometimes i go through periods of doing other things with my life.
    Newsflash people are free to set their own priorities. Since when is making this easier a bad thing?

    --

    Liberty.

  4. What's the problem? by Dephex+Twin · · Score: 5, Insightful

    I don't really see what's so bad about this. It's there, and maybe you get around to watching it and maybe you don't.

    One positive thing that I have noticed since I started Netflix is that I watch a lot less movies that I *don't* care about much. Back when I used to go to the video store, I might have a few movies in mind, and maybe these movies would be in, or not, or maybe I remember my mental list, or maybe not. But at that point, I've driven to the video store, so I'm leaving with at least one movie. So, I spend 45 minutes to finally decide on something that I don't even care about, just so my trip wasn't a total loss.

    --

    If you want to make an apple pie from scratch, you must first create the universe. -- Carl Sagan
    1. Re:What's the problem? by SydShamino · · Score: 5, Interesting

      >> One positive thing that I have noticed since I started Netflix is that I watch a lot less movies that I *don't* care about much.

      I, on the other hand, have been watching *more* movies that I really don't care about. With rentals, it's hard to pay good money for crap movies like "The League of Extraordinary Gentlemen" (currently at the top of my queue). With NetFlix, though, assuming I watch and turn it relatively quickly, I'm only paying $0.80 or so for the rental - and that money is hidden away in a monthly fee that I pay anyway. Given that my tastes wander enough to appreciate B, C, and D-grade science fiction, this is a good deal.

      It really does work better than local rental places for me. As soon as we signed up and I realized this, I bought a lot of Netflix stock. That's doing pretty well for me so far, too, so I think I'm not alone.

      --
      It doesn't hurt to be nice.
    2. Re:What's the problem? by Surt · · Score: 5, Insightful

      But at that point, I've driven to the video store, so I'm leaving with at least one movie. So, I spend 45 minutes to finally decide on something that I don't even care about, just so my trip wasn't a total loss.

      Or from another point of view: your trip was a total loss, and you spent $2 on a movie you didn't want to see, and maybe you'll suffer through watching it, and you have to return it.

      But I'm a bit of a pessimist.

      --
      "Who is the Journal of Quantum Physics going to believe?" --Stephen Hawking
  5. Different queing algorithm needed by MagikSlinger · · Score: 5, Informative

    We hav Zip.ca up here in Canada. It's kind of interesting to hear about this because I have a different approach to how I do things, and Zip's somewhat *ahem* silly queing system does have an option to make it useful: Park.

    What I do is arrange on my active "Can send" list (Normal priority in Zip speak) the stuff I know I would watch, and then use ASAP priority to move up things I definitely will watch if I receive it. Anything else I feel I wouldn't watch, I send to the Parking lot (Park priotiy).

    Arbitrarily ranking the queue (which I understand Netflix allows) is handy if you know you're going to watch things, but maybe they need to ask the user: I REALLY want to watch this, I wouldn't mind watching this, and "Eh, a friend told me i should watch it".

    --
    The bitter lessons of a veteran coder: http://bitterprogrammer.blogspot.com
  6. See, I have a similar problem by Gadgetfreak · · Score: 5, Funny

    But I'm not a Netflix subscriber. Just not big into movies.

    But the bigger and more complicated a decision, the easier it is for me to decide. Choosing a college: Simple. I went, I looked, and by the time I needed to apply, I'd already decided. Only applied to 1 school. (Graduated 3 + years ago, picked up a dual Engr. degree, and had a blast). Buying a car? Simple. I knew what I wanted. Buying a house? Simple. (Going on 2 years now, still satisfied).

    But man... you put me in front of a vending machine and I cannot make up my friggin mind. I'm not kidding. I can't decide. I'll stand there staring at it. Speaking of which.

    --
    "No fair, you changed the outcome by measuring it!" - Professor Hubert J. Farnsworth
  7. Not as it was by SuperKendall · · Score: 5, Insightful

    Remember going to your local video rental store and going up and down the aisles to peruse the movies. I enjoyed that.

    So did I, but rental places now have about a total of thirty movies - or at least thirty really, really new movies and then shelves of drek.

    I like Netflix because of all the access to things that would never, ever be at a video store. You just can't beat a selection of hundreds of thousands of titles.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
  8. Why is basic life so hard for some? by Quiet_Desperation · · Score: 5, Funny

    My job has been very busy lately, and Elder Scrolls IV wandered into my life, so I simply cut back my Netflix account to two out at a time down from four. I can just about slip in two movies a week. If I can't do that, I'll cut back to one. There's also the "rip to hard drive" option to backlog films.

    Feeling "pressure" to watch a movie? What would these "paradox of abundance" sufferers do if they had to go out and hunt a wooly mammoth for dinner? Cripes, take a Paxil or something.

    I had a further point to make, but I think I'll just say wooly some more. Wooly. Wooly. Wooly wooly wooly.

  9. You don't want what you think you want by voidstin · · Score: 5, Insightful

    That's the point of the article. It's not about whether you're lazy or stupid or just not disciplined enough to watch rented movies. However, when you're given an abundant amount of choices, it's often harder to make a good decision. Add netflix's delay into the mix (what do I think I'd like to watch at some point in the future?) and it gets even harder.

    Of course we want to see Hotel Rwanda, or the new almodovar film, because we are advanced, modern intellectuals. In reality, after a 12 hour day of re-factoring someone else's messy code, would you rather open a beer and collapse in front of Hotel Rwanda or Super Troopers?

    The problem is netflix (and tivo) makes you confront this issue - You have to send it back and quit on it. You have to admit that you don't want to watch Hotel Rwanda. You'd rather fast forward to the "good parts" of The Girl Next Door rather than think about genocide. You are not the advanced, modern intellectual you thought you were. Who wants an existential crisis when they thought they were just renting movies? Is this horrible? probably. So is alcoholism, but i bet you didn't cringe when I opened a beer in the above paragraph.

    This topic has brought out a lot of elitist viewpoints... I'm surprised. You may use Netflix perfectly. Congratulations. That's not what we were talking about. The intersting thing about this is how a fairly subtle shift in delivery method created a whole mess of problems (as well as solutions) for the end user, and ended up changing the experience for the user substantially.

    Now, to really make it interesting, lets talk about the Netflix friends feature, where your friends can see what you rent and what's in your queue, as well as what you thought of it. Are you really willing to give Ultimate Fighting Championship 5 stars if that girl you've got your eye on is going to find out?

  10. Paradox of Consumption by SloppyElvis · · Score: 5, Insightful

    The converse of this paradox is also one. Accumulating as much of a product as possible to maximize the value of the monetary expense, even if doing so adversely affects your enjoyment of that product, illustrates a strange consequence of consumerism.

    The obvious example is that of the person who consumes far beyond a comfortable and enjoyable amount of food at an all-you-can-eat buffet. The value for the price is determined to be "volume of food" rather than enjoyment of the meal. Would someone consciously pay for a sick stomach?

    For some, Netflix is approaching this valuation on "volume of movies" rather than convenience or even personal enjoyment/satisfaction of the service.

  11. Netflix is best for Married people with Kids by nullix · · Score: 5, Interesting

    I stopped renting movies from Blockbuster before Netflix was around. I could never return a rental ontime. It was more like a week or 2 after it was do. With the extra late fees added to the rental, it was cheaper to buy the movie. I just bought the movies instead. Of course, this was when I was single and had money to burn.

    Now with a wife and kids, there is no time to goto the movies. Netflix is great to catch up on the movies I missed. Plus, I can easily rent questionable movies like King Kong and Napoleon Dynamite without having to pay $50 to see it in the theater ($10 for 2 people, $20 for food, $20 for a babysitter).

  12. Wow... by aiken_d · · Score: 5, Insightful

    ...they've discovered Netflix's well-advertised business model. That's some investigative, in-depth reporting for you. Maybe one day soon they'll discover that Burger King differentiates itself by emphasizing their willingness to take custom orders.

    Busy people hate traditional rental stores because you rent some movies, pay for them, get busy and can't watch them, and then return them 3 days later unwatched. Or, equally likely, you return them 6 days later and pay late fees for the movie you didn't watch.

    -b

    --
    If I wanted a sig I would have filled in that stupid box.