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Old 04-23-2003, 04:39 PM   #1 of 20
imported_Brian
 
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Netflix penalizing heavy users


I don't use Netflix myself, but I thought this might be of interest to others. Courtesy of Slashdot:

Analysis of Netflix's DVD Allocation System

-B
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Old 04-23-2003, 04:44 PM   #2 of 20
Paul McElligott
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Great way to reward those loyal customers...





R.I.P. DVDSpot
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Old 04-23-2003, 04:58 PM   #3 of 20
Doug Schiller
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It is not too hard to justify really.
If it costs them ~$.70 to mail you the disc one way, if you have the ability (location to dist center) to rent 20+ movie on a 3 out system, they are only getting $6 from you (for 20 rentals).

Not saying it is right, but I'm sure it is factored into who gets sent what.

I'm more concerned about the rumoured games that they play (losing returns to slow the process).

I have been renting since Feb and everything, even new releases gets sent with little or no wait. I can only get about 18 a month tops base on my location.

I'm very happy with the service, I was happy with Blockbuster until they went to Fullscreen only copies.

Doug
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Old 04-23-2003, 05:01 PM   #4 of 20
Andrew_Sch
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Sounds unsubstantiated to me.




\"Old theatres are irreplaceable. They could never be duplicated at today\'s costs - but more importantly, their spirit could not be duplicated because they remind us of a day when going to the show was a more glorious and escapist experience. I think a town\'s old theatres are the sanctuary of its dreams.\"-Roger Ebert
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Old 04-23-2003, 05:04 PM   #5 of 20
MarcVH
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Well, since you pay a flat rate per month, it the customers Netflix wants to reward are the ones who don't rent many movies. It's just like a gym, whose best customers are the ones who rarely show up.

What's unfortunate is the fact that they don't modify the algorithm for people who upgrade to premium plans (and thus pay more $$$.) This may discourage some people from upgrading to these plans.
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Old 04-23-2003, 05:17 PM   #6 of 20
Tony Aguila
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It's hard to really prove this, one way or the other. I myself am a very heavy user (20-25 titles a month), and it doesn't feel like it's any harder to get "hot" titles any more than other users I know that are nowhere near my level of usage. A few months back, though, it seemed like they were trying to curb my use by adding titles to my "out" list but keeping them in "Shipping" status (read as to-be-shipped), but keeping them that way for 2-3 days at a time. I emailed them about my concerns and they even replied that I shouldn't be complaining because of the number of rentals I do get each month... but that's beside the point. They claim "as many as you like..." To make a long story short, the practice seems to have stopped and titles added to my "out" list usually get shipped the same day.

For what it's worth, sometimes I do get the feeling that they are losing money on users like me. However, if you take into account the number of people I've convinced into joining NetFlix, I think both parties are coming out ahead.
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Old 04-23-2003, 05:17 PM   #7 of 20
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I don't understand this line of reasoning at all, so the one's who rent only on occasion are considered the best customers!?

It's like they're penalizing people for merely taking advantage of the service...which is what the customers are supposed to do!

Doesn't sound right to me.




"There was that time I wanted to be an astronaut.
I wanted to be the first one to kill somebody on the moon."
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Old 04-23-2003, 05:25 PM   #8 of 20
Michael St. Clair
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Netflix has said in interviews that if you rent more than 4 or 5 titles a month, they lose money on you. If you watch, then return the next day, you can easily rent 12 titles a month on a 3-disc membership plan.

I can tell you that I had certain DVDs that stayed as 'Very Long Wait' for about 4 months. Then I quit and rejoined under a different email address, and got them within 2 weeks.

GreenCine is better, anyway. They don't have multiple shipping/receiving centers yet, but they have way more cool cult/obscure stuff.

http://www.greencine.com/



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Old 04-23-2003, 06:06 PM   #9 of 20
Mark_Wilson
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Quote:
I'm more concerned about the rumoured games that they play (losing returns to slow the process).

I read recently that Netflix apologized for this after firing several employees for stealing returned dvds. May have been on slashdot.org.
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Old 04-23-2003, 06:07 PM   #10 of 20
Steve Felix
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This matches my experience. I just re-signed up today -- I'd quit before when waits were getting longer and was pleased today when I added 19 movies to the queue and all were "now available." Then I come here and read this. Sigh. It obviously makes economic sense for them to do this, but as a good Capitalist I consider only my own self-interest and will be switching to GreenCine at the slightest provocation.



"We're trying to make a movie here, not a film!"
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Old 04-24-2003, 04:19 PM   #11 of 20
Dave Gorman
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With a queue averaging around 150 I've never worried too much about wait statuses. Over the last 12 months I've averaged 15/month (and 2 of those months were very slow rental months because I was spending all my time house-shopping, house-buying, and moving). If I'm in a drastic hurry to see something that Netflix has in a wait status, I'll rent locally or perhaps even purchase.

Whether fair or not, I can certainly understand from Netflix's perspective were they to offer greater availability to slower renters. I'm not going to lose sleep over it...



...And then there's the guy who saw the sign that said "Wet Floor", so he did.
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