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Netflix Says People Watch Same Amount of Movies Regardless of Perceived Quality or Depth (news.com.au)

Two of the most common issues people have with Netflix is: the movie catalog is shrinking, and the quality of the movies aren't that great anymore. Netflix says it is aware of those issues, and it thinks, in reality, those factors don't really matter much as people end up watching the same amount of movies as they always have. From a report:According to the Netflix exec, subscribers spend about the same time watching movies on the service regardless of the depth or perceived quality of the movie library. "No matter what, we end up with about one-third of our watching being movies," he told the audience. Mr Sarandos cited two contrasting examples of the United States and Canada as proof of such behavior. In Canada, Netflix has five major deals with movie studios to use their content while in the US the company basically has none, with the exception of the recently signed Disney deal. Despite US subscribers having far less access to movies from big studios, both countries spend roughly the same proportion of their time on the service watching movies. Netflix believes that by the time many blockbuster movies make it onto the platform -- many months after being released in the cinema -- a majority of fans have already seen them. "If you were passionate (about a movie), you've already seen it," he said.

23 of 162 comments (clear)

  1. I beg to differ by Anonymous Coward · · Score: 5, Insightful

    I havent watched anything on netflix in weeks precisely because I cant find anything with any quality or depth.

    Am strongly considering cancelling my subscription.

    1. Re:I beg to differ by Applehu+Akbar · · Score: 2, Interesting

      The Netflix DVD service used to be famed for including almost every movie ever made. When its big switch to streaming was stymied by licensing squabbles, I was one of many subscribers who stayed with the DVD service because of its depth. I have no problem waiting a month or two for new releases when so much older content is still available. But lately, I get the impression that worn-out DVDs are not being replaced as Netflix concludes that a somewhat better streaming selection means no more need to keep up the overhead of physical distribution and storage.

    2. Re:I beg to differ by gfxguy · · Score: 5, Insightful

      Agreed.... I think a lot of people watch stuff they wouldn't otherwise because they have some free time and say "let's watch a movie." Then, instead of picking something they really want, they look at what's available on Netflix and choose what they hope is the best option.

      When that best option turns out to be a pretty crappy movie, time and time again, it will cost Netflix customers in the long run.

      Indeed, bean counters are more focused on what will get them the next bonus than what will actually help the company in the long run.

      --
      Stupid sexy Flanders.
    3. Re:I beg to differ by Verdatum · · Score: 2

      Right, so their plan is to get people to subscribe and stay subscribed because they're addicted to Netflix' original content. They don't have to share profits on those, so, as long as they continue to be well-regarded, they pretty much have no incentive to work out deals with the movie studios. If they haven't already, they're gonna need to start working out year-long subscription discounts, or else, if this trend continues, people might only subscribe during months when their favorite series is released, bingewatch it, and unsubscribe the rest of the year. Granted, they're also banking on people being too lazy to bother with this.

    4. Re:I beg to differ by David_Hart · · Score: 4, Insightful

      I havent watched anything on netflix in weeks precisely because I cant find anything with any quality or depth.

      Am strongly considering cancelling my subscription.

      I dropped my Netflix subscription three years ago when they stopped getting new movies (dropped contracts with major movie studios). I enjoy movies and have no interest in watching old TV series.

      This study is poor. They are evaluating their current customer base. The problem with this is that the majority of movie fans have already left the service. What this means is that the majority using it today do so to watch TV shows and original content. The only reason why they use Netflix for movies is simply convenience.

      In other words, it shows Netflix who their current customers are but not the potential market. It's like Tesla saying that trucks are not needed beause all of their customers drive cars...

    5. Re:I beg to differ by Gavagai80 · · Score: 2

      If Netflix were intelligent, they'd see the DVD service as an important negotiating ploy to keep their licensing costs reasonable.

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    6. Re:I beg to differ by ShanghaiBill · · Score: 5, Insightful

      On smoggy days, people breathe just as much as on clear days.
      So the obvious conclusion is that people don't care about air quality.

    7. Re:I beg to differ by elrous0 · · Score: 2

      I cancelled my sub several months ago and haven't regretted it one bit.

      Netflix has made the decision to go full-bore on original content and completely neglect their back catalog, and that's fine. But the harsh fact is that they will never be able to produce enough original content to make it worthwhile keep subbing for that alone. Even HBO, whose original content is much better and more consistent, still has to offer a good catalog of movies and other content to justify a monthly subscription. And Netflix's once-amazing back catalog used to be what set it apart from HBO, Hulu, and Amazon. But it has shrunk drastically in the last year or two to the point where it's getting harder and harder to find decent content.

      Anyway, at a certain point earlier this year, I realized that:

      1) Amazon's back catalog now rivals Netflix's. And Amazon's service essentially comes for "free" with my Prime membership (that I already keep just for the free shipping).

      2) Netflix's original content, while good, isn't worth the subscription cost just by itself.

      3) For about the same cost, I could dump Netflix and pick up ad-free Hulu, which gives me access to a ton of old TV shows that were once on Netflix but aren't anymore.

      The choice was then clear. Sorry Netflix, Stranger Things is a great series. But it ain't $10-a-month good.

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      SJW: Someone who has run out of real oppression, and has to fake it.
  2. too much segmentation by anthony_greer · · Score: 5, Insightful

    This ala carte thing is really backfiring - as much as I dislike Comcast, there is something to be said for getting everything in one bill. When you add up netflix, HBOgo, hulu, CBS, Amazon, and your choice of Directv NOW, Playstation TV, or that Dish/sling offering plus a decent internet connection, its already more than the tv+net package from the cable company and the content we want constantly disappears or has some goofy restriction placed on it. The media companies are making this WORSE...

    1. Re:too much segmentation by gatkinso · · Score: 2

      What you are describing is not a-la carte.

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      I am very small, utmostly microscopic.
    2. Re:too much segmentation by nine-times · · Score: 2

      The fragmentation is intentional, on the part of the content owners. Believe me, everyone knows that a lot of people want a single streaming service with all content. It's just not what copyright owners and ISPs want.

      Let's say Netflix suddenly had the rights to stream all movies, TV shows, and live events, and became the service that pretty much everyone used. Even if they raised prices quite a lot, people would still sign up for it. However, a company like Comcast would then be relegated to being a "dumb pipe". People would still pay them for Internet access, but they'd lose most of their revenue for cable TV or streaming services of their own. It's actually in Comcast's interest to keep streaming services insufficient to replace cable, so that people will continue paying for cable.

      A company like HBO wouldn't like it, either. They could continue to make money by licensing their original shows, but that's not the only way that they make money. Even for their streaming services, they make money by bundling a bunch of content and charging more per month than you would probably pay for their original shows. However, a decent chunk of income comes from deals with cable providers, which would dry up quickly once everyone had moved to Netflix.

      Even the networks and production companies that produce shows probably wouldn't like it, for the most part. Right now, they can license the same show or movie to Amazon, HBO, iTunes, Hulu, Amazon Prime, and any other services they like. You're forced to pay for a bunch of different services, and they get a small cut of each of those services' incomes. If the number of services were cut, they might also make less money from that one service than the aggregate of all of the other many services you're paying for. After all, you may be subscribing to some of those services for only one or two shows (because a fair amount of the content on each is available on the others), but the extra money still gets split among content owners.

      And all of that still hasn't touched on the fear of one company controlling the whole market of video distributions. If Netflix were to get access to all content before the other streaming services, then they could become a de facto monopoly, and control distribution for all the different content owners. Even if all of the streaming services suddenly had access to all content, they would lose most of their marketing leverage. They would only be able to compete on things like the quality of their apps, the quality and bandwidth usage of their streams, or price. You and I might think that sounds great, but it's not really what the industry wants.

  3. That explains a lot by SlithyMagister · · Score: 3, Interesting

    If the same holds true for television -- that people watch the same amount regardless of quality -- it explains why I get 140 channels and can't find a show worth watching.

    1. Re:That explains a lot by Oswald+McWeany · · Score: 3, Insightful

      That might be the smartest approach. Especially since the streaming market is so fragmented now. Rather than digging through the dregs of a channel for something.

      Get Netflix for a few months, catch up on their good exclusives, cancel. Get Hulu for a few months catch up on their good exclusives, cancel. Get HBO for a few months to watch GoT, cancel.

      Especially since the market looks even more likely to fragment in the future with CBS, et al, trying to get their own paid for channels. Instead of subscribing to multiple, alternate which one you're subscribed to and do one at a time.

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      "That's the way to do it" - Punch
  4. This is true, and disappointing by Anonymous Coward · · Score: 5, Insightful

    From personal experience, when we want to watch a movie on short notice we will go to Netflix first. We've generally got a pool of movies in mind we're meaning to watch. If Netflix doesn't have any of them (a situation which has become more common than not) we'll usually just pick one that is there out of convenience. "Lots of movies, just not the ones you want" is not a great situation for Netflix to be proud of or even satisfied with. It's like they're becoming the online video equivalent of the stereotypical used car salesman from old sitcoms hawking their huge fleet of trashy cars, and 38 rusty Toyotas is not better than the BMW you wanted.

  5. My cancelled subscription begs to differ by scorp1us · · Score: 2

    I cancelled earlier in November for this very reason. They've got their market all wrong. The biggest benefit Netflix had was the volume of movies that you haven't watched but had some interest in. To recharacterize thier users as people who watch what they want prior to netflix, is a big mistake because that's where netflix had its biggest value.

    If this is the real reality, the price of netflix should come down to reflect the diminished quality and selection.

    I'm at amazon now. Amazon and chill.

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    Slashdot's rate-of-post filter: Preventing you from posting too many great ideas at once.
  6. Issues by Daetrin · · Score: 3, Insightful

    There seem to be a lot of problems with this argument, at least as presented in the blurb (TFA is blocked at work.)

    First, the amount of time spent watching stuff is a poor metric by itself. What you really want to know is the amount of enjoyment people get out of the service. Admittedly that is very hard to measure accurately, which is why they want to use "hours spent watching" as a more easily determinable value. However they shouldn't forget that the map is not the territory.

    As long as people are subscribed to the service they're going to feel compelled to get something out of it. It's the old complaint of "a hundred channels and nothing is on", and yet people kept watching, at least until something better came along. For a lot of people if they have Netflix and they feel like watching a movie they're going to browse around until they find _something_.

    And there's a strong corollary, if people feel like they _aren't_ getting their money's worth out, they're probably inclined to cancel the service. Which means suddenly they're not being measured in your survey anymore.

    Of course what's being measured here is the balance between movies and TV, which _might_ not be affected by people deciding there aren't enough good movies on. However the above would still hold true if their (non-original) TV content had also seen a similar decline. I know a couple shows i used to watch have disappeared off of Netflix. Are there actually any statistics about the number/quality of TV shows they've had available over time?

    Finally, saying that "a majority of fans" have already seen blockbuster movies is just dumb. Of course the "fans" who were "passionate" about the movie have already seen it. They're probably also the people who are going to buy it on DVD or BluRay. They are not your customers in this particular instance. The people who are waiting until the movie is on Netflix/Cable/broadcast TV are the people who said "that sounds kind of cool" but never got around to watching it before it left theatres. Given that they weren't gung-ho about it in the first place they're probably not going to want to rush out and buy the DVD sight-unseen, they're just going to wait until they can rent it or catch it on something they have a subscription for. There may be no one particular blockbuster movie that audience especially cares about, but if your service doesn't carry _any_ of the blockbusters then i expect that that's a serious mark against it in the eyes of many consumers.

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  7. Re:Only because of limited competition by gfxguy · · Score: 2

    Hulu actually has a lot of movies they offer, too... unfortunately, it's about the same quality as Netflix's library.

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    Stupid sexy Flanders.
  8. How can you even argue with Netflix? by adosch · · Score: 3, Insightful

    I've had Netflix for what seems forever, at least for 10 years or better. Bragging about that buys me zero credibility and a negative balance of /. stock, but here's why I think they are right: people seriously don't give a shit after a while and will side with convenience, comfort, and instant availability to satisfy all of our Alice in Chains 'feed-my-eyes' quest for immediate entertainment anymore, even if it's at the cost of some pixel depth and resolution crispness.

    Not a single person can't tell me after spending almost the comparable amount of swiping time 'looking' for a show that it takes to actually watch one, you just finally pick something and watch it.

    Heck, I can't tell you how many times I just wanted to watch a show I was jonsing to put on, that I own in that cute BluRay-DVD bundle pack, but was too lazy to go and physically put it in, so I sufficed the average HD/SD quality Netflix had to offer _for_the_same_show_.

    Netflix has got it right and doesn't need to back up their claim with all the data you give them away to pillage, do big data on, run through Hadoop or whatever machine learning foo they have: We are going to watch it all in the end, regardless of what is/isnt there and what it's quality is, as long as it doesn't look too much like a 1980's Twisted Sister bootleg off a first gen tape PVR. That's how we are wired to act about this shit anymore. Anyone having a high-res flame war here is just wrong IMHO.

    1. Re:How can you even argue with Netflix? by jwdb · · Score: 2

      Article is talking about quality in the sense of it being a good film vs rubbish, not whether or not they've cranked up the compression. He's saying that if all that Netflix has is "Big Summer Movie Blockbuster XXIV: The Return", people will watch it anyway even if it's trash, so why bother trying to curate their movie selection. For me that's a deal-breaker, as I have very little interest in trash.

      Streaming quality is not mentioned anywhere, neither in TFS or TFA. I'll give you that the title is ambiguous, but the summary isn't.

      Not a single person can't tell me after spending almost the comparable amount of swiping time 'looking' for a show that it takes to actually watch one, you just finally pick something and watch it.

      True - I can't fathom wasting an hour of my life swiping through shows trying to find something to watch. Either I've heard about a show elsewhere and go straight to it, or I do something else with my time.

      Not everyone's as addicted to TV as you claim.

  9. Re:Cut the cord by Verdatum · · Score: 3, Interesting
    And bleeding everyone is what the big entertainment industry is forced to do to stay afloat, because more and more people get their entertainment from their peers on YouTube.

    It's gonna be a hairy couple of years before the business models work themselves out and everyone finds a happy niche. Meanwhile, I'm off to pitch a gritty remake of...let's go with, uh, Jimmy Olsen as Elastic Lad.

  10. That attitude won't bite them in the ass by swalve · · Score: 2

    I mean, what could go wrong? "People buy our stuff whether it's good or not! Surely, they will continue to do that forever. Dividends for everyone!"

  11. Quality vs. Quantity by Roger+W+Moore · · Score: 2

    The problem is too much choice and not enough quality material. If you have 4 TV stations, like the UK use to have, each of them has enough revenue to be able to produce quality programs that a large segment of the population will enjoy. When you have 100+ stations the audience is fragmented and most of the stations have less money since there re more staff to support and so they can only afford reruns or crap new shows which are cheap to make.

    The same is true for streaming. If you look at the content on Netflix in Canada there are no real alternatives since Shomi shutdown and as a result the content they have is much better than the US. If you have 5 streaming companies then that same content will be split five ways and the money each has for new programming will be much less because now that same revenue has to support 5 sets of admin and support staff etc.

  12. Re:Sort of like eating I suppose... by BlueKitties · · Score: 2

    This, hard; Most people who watch movies as entertainment are going to be slow to adopt new hobbies. What the report really says is "bored people on Monday evening settle to watch movie they're not that interested in because they couldn't think of anything else to do." This is the precise arrogance that pushed Block Buster Video out of business.

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    "Sorrow is better than laughter, for by sadness of face the heart is made glad." [Ecclesiastes 7:3]