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."

Comments

Time will tell

[Mr D from 63]

Time will tell, if customers really care.

Re:Time will tell

[aaron4801]

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.

Re:Time will tell

[Belial6]

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.

Alternate view

[NewWorldDan]

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

Re:Alternate view

[Sarten-X]

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

Re:Alternate view

[H0p313ss]

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

I am highly offended by your outrageous comment!

I doubt most people care

[93 Escort Wagon]

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.

Re:I doubt most people care

[praxis]

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.)

call them

[goombah99]

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

Re:call them

[Belial6]

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?

Re:Why do you want pieces of plastic

[Dins]

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

First world problems....

[Dega704]

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.

Because...

[sjbe]

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.

First World Problems

[sjbe]

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.