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Netflix Reduces Physical-Disc Processing, Keeps Prices the Same

Nom du Keyboard writes: After seeing a drop in my DVD service from Netflix I got a customer service representative tonight to confirm that Netflix has ceased processing DVD returns on Saturdays nationwide. And that they did this without notifying their customers, or reducing prices to compensate for the reduced service. Given that the DVD selection still far outstrips their streaming selection, this may be news to others like myself who don't find streaming an adequate replacement for plastic discs. My experience up until recently, unlike Netflix's promise of a 1-3 day turnaround at their end which gives them lots of wiggle room to degrade service even further, had been of mailing in a DVD on day one, having them receive it and mail out my next selection on day two, and receiving it on day three. Now with them only working 5 days and many U.S. Post Office holidays, they're still getting the same money for significantly less. The Netflix shipping FAQ confirms the change, and a spokesperson said, "Saturdays have been low volume ship days for us."

41 of 354 comments (clear)

  1. Time will tell by Mr+D+from+63 · · Score: 4, Insightful

    Time will tell, if customers really care.

    1. Re:Time will tell by bobbied · · Score: 2, Interesting

      I'm a customer... I don't care.. I'm getting ready to stop the mail side of my subscription anyway.

      --
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    2. Re:Time will tell by Jaysyn · · Score: 3, Funny

      I had forgotten NetFlix still mailed DVDs.

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      There is a war going on for your mind.
    3. Re:Time will tell by CauseBy · · Score: 2

      Of course. For anyone who watches even a medium amount of TV shows, Netflix is probably a pretty good deal. For me, I watch a very small amount and the value stopped being "worth it" a couple years ago when their streaming selection dried up. Forget any major Hollywood movies, I couldn't even get my favorite genre of documentaries anymore. My family at that time switched back from streaming to DVDs, and then the DVD selection got a little thin too. Items I'd put on my Queue were removed without warning and I couldn't find the titles in the library anymore. It seemed to me like the trend line was going to zero content, and even if it never got to zero it was already too low for me.

      What is an hour of TV "worth" to me? Probably ten or twenty cents. I could justify double that, or even triple, but I wasn't even watching that much. I dropped Netflix. Since then the headlines have been pretty negative.

      The only TV I'm very interested in is Daily Show, Colbert Report, NFL football, and the local news. Now Colbert is going away, I can watch Daily online, and we bought an antenna for football. I don't watch the news, it's too much hassle.

      Netflix isn't expensive in absolute terms. Pay for it if it's worth the money to you. If not, don't pay.

    4. Re:Time will tell by aaron4801 · · Score: 5, Insightful

      I see so much bitching over Netflix' lack of selection/declining service/raising prices, that it makes me wonder who is forcing all these people to be a subscriber? Don't like it, don't pay for it. 99% of Netflix' problems are due to the licensing fees by the movie studios. Don't blame the messenger.

    5. Re:Time will tell by SydShamino · · Score: 3, Interesting

      Yeah, I'm about to cancel as well. What's left on my list isn't awesome, and I can get a lot from the local libraries if I care that much.

      --
      It doesn't hurt to be nice.
    6. Re:Time will tell by Belial6 · · Score: 4, Insightful

      People are bitching because they are seeing a company that offered a good service for a good price, drive themselves into the ground. Since there is no direct replacement, this impacts them in a negative way. It is similar to complaining that your neighbor has a broken down car without wheels parked on his lawn. You recognize that it is his property, and there isn't anything you can do about it, but that doesn't mean your complaints lack merit.

      You are right that licensing fees by the studios are a major cause of this problem, but those problems only apply to streaming. In the US, you can rent any disc you legally own. Netflix is creating their own problem by trying to move to a streaming only business plan. Somehow they havent seem to have figured out that those licensing problems are only going to get worse without the ability to fall back to DVD rentals.

  2. Alternate view by NewWorldDan · · Score: 5, Insightful

    Alternately, you could claim that they cut Saturday processing instead of raising prices. I'm hardly outraged about this.

    1. Re:Alternate view by Sarten-X · · Score: 4, Insightful

      This is Slashdot. We'll take any excuse we can to get outraged.

      --
      You do not have a moral or legal right to do absolutely anything you want.
    2. Re:Alternate view by H0p313ss · · Score: 5, Funny

      This is Slashdot. We'll take any excuse we can to get outraged.

      I am highly offended by your outrageous comment!

      --
      XML is a known as a key material required to create SMD: Software of Mass Destruction
    3. Re:Alternate view by Mr+D+from+63 · · Score: 3, Informative

      You could say that if we lived in an inflationary economy. Since we don't, that explanation doesn't hold water.

      You could say that if there were no inflation, but since there is, that response doesn't hold water.

      On top of that, they got those fast lane fees to cover.

    4. Re:Alternate view by CrankyFool · · Score: 2

      Netflix raised prices back in May; existing customers are grandfathered in for a while (when prices went up in Ireland, customers were grandfathered for two years). More at http://www.buzzfeed.com/matthe...

      Given that this was done in Q2, and the earnings call was about Q2, I believe Reed was talking about that particular raise (which, again, happened two months ago), not a new raise. There's no new raise.

      (I work at Netflix, but I just play with computers).

  3. I doubt most people care by 93+Escort+Wagon · · Score: 5, Interesting

    Most of the Netflix subscribers I know (including myself) are paying that monthly fee mainly for the privilege of having that red mailer sit on the shelf next to the TV and gather dust.

    In any case, I doubt the typical Netflix subscriber will think this change impacts them in any significant way.

    --
    #DeleteChrome
    1. Re:I doubt most people care by CauseBy · · Score: 3, Insightful

      It's weird that you haven't dropped it yet, if you've already come to that conclusion. It sounds like you are like me -- a person who doesn't watch enough TV to justify even the relatively low cost of Netflix. You may also find that, like me, you don't miss it when it's gone.

      For anyone who loves TV and watches a bunch of it, Netflix is probably still a pretty good value, with or without Saturday processing.

    2. Re:I doubt most people care by praxis · · Score: 4, Insightful

      I get one, or at most two, movies from Netflix every month. It's really not a good deal for me. One of these days I'm going to drop it entirely. I don't have any problem with the service (with or without Saturday turnaround), I just don't watch enough movies to justify it.

      It's $8 a month for those two movies. That's $4 a movie. How much did blockbuster charge? How much more time was it to go to blockbuster and back home? It seems we keep wanting more and more for our dollar. Most of the time we get it, but then later when we fall a little short of more and more we're annoyed. Goes to show that you give someone a much better value and they adapt and take it for granted, then reduce their value by a little bit and it's the sky falling. (That last comment was more about the OP, not you specifically--it was your invocation of 2 movies a month being a bad deal that got me to comment in the first place.)

    3. Re:I doubt most people care by Razed+By+TV · · Score: 2, Insightful

      Sure, it's only $8. But by that logic, everybody should just have Netflix whether they use it or not. GP likely has other things competing for his attention, probably including cable tv, at which point its a reasonable question of how much is too much.
      There is a point at which media competing for your attention reaches saturation. After that, you can keep buying into services, but the time you spend on any one goes down and the overall value is diluted (unless you have some specific need from each service).

  4. Re:Why do you want pieces of plastic by Jeremi · · Score: 2

    Why would anybody want to wait for a day or two for a piece of plastic when they can access the data instantly online?

    Nobody would, except perhaps for those with inadequate Internet bandwidth.

    However, for a large number of movies you can't currently "access the data instantly online" (at least, not via Netflix). Netflix's primary focus should be on getting their streaming catalog to match their DVD catalog.

    --


    I don't care if it's 90,000 hectares. That lake was not my doing.
  5. call them by goombah99 · · Score: 5, Insightful

    netflix listened to customer feedback when they tried to spin off their disc rentals to another company. so call them and give them feedback. they are easy to reach by phone. if you dont complain to them please dont whine on slashdot

    --
    Some drink at the fountain of knowledge. Others just gargle.
    1. Re:call them by sribe · · Score: 3, Insightful

      netflix listened to customer feedback when they tried to spin off their disc rentals to another company. so call them and give them feedback. they are easy to reach by phone. if you dont complain to them please dont whine on slashdot

      The difference here is that very very few people will care. We're talking about mailing in a DVD on Friday, and getting the next on Tuesday instead of Monday.

      Most of us have jobs and lives during the week. Most DVD watching is concentrated to Fri/Sat/Sun.

    2. Re:call them by AuMatar · · Score: 2

      I think you have that backward. M-Th is when you go to work then come home and want to just watch TV for the night. F/S/S is when you go out and do something because you don't have to be home early.

      --
      I still have more fans than freaks. WTF is wrong with you people?
    3. Re:call them by xyra132 · · Score: 3, Insightful

      Not if they have kids. I only watch films Friday or Saturday nights now, when you can't easily go out without baby sitters or other childcare nights in become important. Weekday evenings tend to be getting to bed early so not to be tired at work if the kids wake up at some silly time of the morning / middle of the night. I bet a very large proportion of Netflix customers have young families, I would imagine the 25 - 40 age bracket is their largest customer base.

    4. Re:call them by Belial6 · · Score: 4, Insightful

      Streaming is a dead end. Because of the way our copyright laws work, Netflix can rent you any disc they get their hands on. This means that the only way for the studios to gouge Netflix with DVDs is to raise the price of the disk across the board. It also means that the only way for a studio to deny Netflix the ability to rent a particular movie is to stop all sales of disc based copies of the movie. If it is an older movie, the studio would also have to somehow acquire every copy previously sold as well. In the end, there isn't much control that the studios have on disc based media.

      On the other hand, every stream is considered a new copy. That means that Netflix must negotiate with the studios for every stream they provide. This means that if Netflix starts making too much money, the studios can start striping away their profits. Another streaming service can strip away Netflix's ability to stream movies and TV shows by making an exclusive deal with the studio. Companies like Disney can play the 'Disney Vault' game. We already see this with Netflix's streaming library. The reason the selection is so much worse than the disc selection is because Netflix can't legally stream many movies and shows.

      The DVD rental business is Netflix's only wedge against the force that the studios can bring down to crush Netflix. Clearly Netflix doesn't understand this, as this isn't the first degradation in service that they have used to encourage the wind down of their DVD business. I noticed about two years ago, they stopped stocking a lot of movies. The long tail is a major way that they drove out the local rental stores. Buy servicing the entire nation, they were able to offer a selection that a local shop simply couldn't compete against. Now, even widely available movies just are not available from them. I sat with 'Conan the Barbarian' in my queue for 2 years, and Star Wars Episode 1 in my queue for 18 months. I gave up. I used to love their service, but if they don't want my money, who am I to try and force them to take it?

    5. Re:call them by lgw · · Score: 2

      Netflix streaming is nearly-worthless - there's just no content.

      Hulu streaming is totally worthless garbage. Fuck commercials.

      Amazon has the wrong model. PPV isn't where it's at.

      There's no question Netflix is gradually ending their disc service (selection is falling rapidly), and that really sucks. The ~$1.50 price to watch a disc was right for me, and it's sad to see it die. There's so very much great stuff from the 20th century that seems doomed to vanish with the death of physical media (and the complete and utter failure of government and the legal system when it comes to streaming and licensing).

      At this point, I can only hope good rips of everything are around somewhere and being archived by hobbyists, awaiting some fix to copyright law. (Torrents may be plentiful for new stuff, but new stuff is easily available in legal ways for those who aren't broke anyhow. Torrents for last-century works are a different story).

      --
      Socialism: a lie told by totalitarians and believed by fools.
    6. Re:call them by Deep+Esophagus · · Score: 2

      The difference here is that very very few people will care. We're talking about mailing in a DVD on Friday, and getting the next on Tuesday instead of Monday.

      My solution to this is, don't make Saturday a day when you expect Netflix to be doing anything. My watching days (barring postal holidays) are Tuesday and Friday. I watch the new movie Friday evening, get it to the mailbox before Saturday morning pickup. That leaves Saturday in the hands of the US Postal Service; Netflix gets it on Monday and sends out a new one that I get Tuesday afternoon.

      Wednesday-Saturday also works -- they send it out Friday, you get it Saturday (with the added bonus of having Sunday to watch it if you don't have time Saturday), put it in the Monday morning mail to go back, they get it Tuesday, and you get your next one Wednesday.

      Either way, as long as you're not expecting Netflix to be moving discs along on Saturday you can still watch two a week.

    7. Re:call them by Bill,+Shooter+of+Bul · · Score: 2

      http://www.forbes.com/sites/sa...

      Netflix is choosing to fight back over rights fees, with original content, not disks.

      There is often a disconnect between what makes sense to an informed individual, and what makes sense to people who bet with their money. Money is saying disks are dead, and rewarding streaming.

      --
      Well.. maybe. Or Maybe not. But Definitely not sort of.
  6. Re:Why do you want pieces of plastic by Dins · · Score: 4, Insightful

    Problem is you can't get all of their stuff streamed. Some of their titles are DVD only. Stupid, I know.

  7. First world problems.... by Dega704 · · Score: 4, Insightful

    Netflix is probably trying to save money by cutting costs. It kinds of sort of sucks but life goes on. Compared to some of the other antics large companies are up to, I have a hard time getting worked up about this.

    1. Re:First world problems.... by CauseBy · · Score: 2, Insightful

      It's just a factor in the marginal utility of a popular service. For some people who paid $8, a 25% increase to $10 was too much. For some people who got 2 simultaneous streams, the 50% reduction to 1 stream was too much. For some people who enjoyed 6-days-a-week processing, the 18% decrease to 5-days-a-week is too much. For some people who enjoyed the huge former library, the substantial reduction in titles was too much.

      Add it up: Netflix now delivers less than half the value it used to. Surely some people are squeezed out at the margins when the value of a service drops by half -- I was. Also, surely, a great number of people still find it to be very much worth the money. It's up to Netflix to find the top of the demand curve and they're tinkering around looking for it. I don't blame them even though I'm one of the people who have been squeezed out.

  8. Re:Why do you want pieces of plastic by Anonymous Coward · · Score: 2, Insightful

    Of course the reason you can't get some of the stuff on streaming is the idiotic licensing practices of the copyright holders. They say "no streaming" so Netflix has to do those ancient plastic discs.

  9. Because... by sjbe · · Score: 4, Informative

    For something that is after all, only data? Why would anybody want to wait for a day or two for a piece of plastic when they can access the data instantly online?

    Because some things aren't available online (legally).
    Because you don't have enough bandwidth to get it online.
    Because you lack the equipment to stream movies to your TV
    Because some DVDs have features not available to streaming versions.
    Because you may not have an internet connection at point of viewing
    Because Netflix's streaming catalog has more holes than shotgunned swiss cheese.

    They may not apply to you but there are reasons why someone might prefer a DVD in some cases.

  10. First World Problems by sjbe · · Score: 5, Insightful

    I wouldn't live in a place with inadequate bandwidth for a simple video stream.

    I think that is the very definition of a First World Problem.

    1. Re:First World Problems by Triklyn · · Score: 3, Insightful

      this entire story is the very definition of a first world problem.

      "the service that i pay for that sends movies to me through the mail for less than the cost of a movie per month... is slightly slower. My outrage is palpable at this slight."

  11. Re:Two words by GameMaster · · Score: 2

    Actually, as the proper name they chose for their company it's only one word.

    --

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  12. You're still getting what you were promised by dirk · · Score: 3, Insightful

    I don't have any issue with this. Netflix did the smart thing and under promised and over delivered. They said it would be between 1 and 3 days and strived to always be 1 day. Now, there will be a limited time when it will be more than 1 day (really, this only affects if they get a disc on Saturday as they would have went out on Monday and now will go out on Tuesday). This is still within the limits they promised. Sure, it's not ideal, but I just don't see any reason to get outraged over a change that will only affect 1 day out of 6 and still keeps them within their promised timelines.

    --

    "Information wants to be expensive" - Stewart Brand, the same guy who said "Information wants to be free"
  13. Re:Why do you want pieces of plastic by honestmonkey · · Score: 2

    Unless the movie you wanted wasn't available on the streaming service, ONLY on a physical disc. Yes, there are movies out there like that ("Tim's Vermeer" being one that I know of). Besides, if I'm not in a huge hurry to watch something, with a disk I can get extras easily, and not worry about





    buffering...

    --
    Everything you know is wrong, Just forget the words and sing along.
  14. And become the next Jammie Thomas by tepples · · Score: 3, Informative

    Did you check Pirate Bay? Their prices are better too.

    Statutory damages of up to $150,000 per work isn't "better".

  15. Re:Terrible streaming movie list by alen · · Score: 2

    OMG, people want to get paid for their work

  16. Re:Why do you want pieces of plastic by suutar · · Score: 2

    Is there any service with a library on par with TPB, streamed or otherwise?

  17. Re:Why do you want pieces of plastic by JesseMcDonald · · Score: 3, Insightful

    I also wouldn't use a service that does not provide a library at least on par with The Pirate Bay.

    That's a pretty ridiculous bar to set.

    I think it's a very reasonable bar to set. TPB proves that there is no technical reason why we can't provide everyone with near-instant, free access to basically every last bit of media on Earth. It's up to the pro-copyright faction to justify withholding that access to suit their own material interests.

    --
    "The state is that great fiction by which everyone tries to live at the expense of everyone else." - Bastiat
  18. Re:What? by Belial6 · · Score: 3, Insightful

    As I have taught my children from the time that they first learned what money is.... If you have to give someone money to get their offer, it isn't free.

    What is in Netflix's FAQ about their delivery times is only relevant when faced with a court of law. From a consumer's perspective, what you get for your money is what matters. When I go into a restaurant, they don't promise to bring my food hot, or in a timely manner. No where do they make that promise. If they have been doing a great job of bringing me my food hot and in a timely fashion for a decade, I will be a happy customer. If they make a decision to cut staff so that my food comes out cold and I have to sit for an hour waiting for it, then I will complain about the business. I will stop being a customer, and I will recommend others avoid the business as well. It doesn't matter whether what they promised.

  19. Re:I'm shocked... shocked I say... by Actually,+I+do+RTFA · · Score: 2

    But you never owned it in the first place... even when you had a hard copy. You only owned a license.

    Google "First Sale Doctrine". You own a copy. Software is tricky because it comes bundled with a license to install it/run it. But the actual disks that contain the installer? Yours.

    All these things go away if you buy a license directly from the stuido, and are guaranteed perpetual use

    Yeah, but that won't happen. In fact, the studios are pushing for per-device fees, separating TV/Computer/Mobile rights, and going more towards a "per-view" model.

    Even if they were willing to, even if that didn't cause all kinds of problems with residuals, even if it didn't impose a perpetual and unbounded cost on the studio... what happens when the studio goes out of business? How does fulfillment actually happen

    My problem with physical media is that it's not possible to carry it all with you... so when you want to take a road trip you have to be selective and predict what your kids are going to want to watch.

    You could ask them ahead of time and plan ahead. Or you could carry a hundred disks in a relatively small wallet. Or, depending on where you live, you may be able to copy the DVD to a hard drive for transportation.

    When kids damage the media, you are stuck purchasing another license to something you already have a license to use.

    Did you use your legal right to make a backup?

    But personally, I find the times I am without access to stream, a la ton a plane, in a tunnel, or just with a lot of peopel using the Internet at my house, where ever, make me want a local copy. And that means a physical copy, in general, if I want it on a device I control that doesn't need to call home or self-destruct. It also means I can resell it, loan it to a friend, etc.

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