RSSNetlfix Site Fails Amid Customer Losses
By Ed Oswald | Published July 24, 2007, 2:51 PM
Netflix took a double hit on Tuesday, as its Web site outage moved into a second day, and it reported the first quarterly customer losses in its history.
The online rental firm's site had been down since Monday evening due to "unanticipated problems," although the company declined to elaborate on the issue. A message on the site said the company expected the site to return by 4pm Eastern Time Tuesday.
Earlier in the day the company said it had hoped to have the site up by noon ET: later this was pushed to 2pm and subsequently to 4pm ET.
In addition, Netflix reported its quarterly results, which showed that for the first time since it started business in 1999, the service actually lost customers. As of the end of the quarter, the company reported a loss of 55,000 customers to end with 6.74 million total subscribers.
Netflix announced over the weekend that it would be dropping its prices on its two most popular plans by $1 to match the fees charged by competitor Blockbuster. Netflix is facing increasing pressure from its smaller rival, which has seen accelerated growth in recent months.
Much of this has to do with Blockbuster taking advantage of its brick-and-mortar stores, where subscribers can drop off their movies, and even rent new ones. Netflix has no physical presence and operates solely through the mail.
Netflix stock traded as low as $15.62 Tuesday morning, a 52-week low. As of mid-afternoon Tuesday the stock was trading at $16.16, down 6.43 percent for the day.
Blockbuster is expected to report its own earnings on Thursday.
Better than netflix or blockbuster?
Just put large vending machine kiosks in supermarkets. Bill $20 on rental, and refund the person $18 to return the video. It's their choice whether to keep the DVD or not.
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|The reason Netflix is dying is because On Demand is more conveniant.
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|So you think people prefer to pay $5 per movie rather than 3x that for 10x the number of movies?
I can easily go through 12+ netflix titles in a month when I am not travelling. That would be $60 on demand vs. $16 for netflix.
I hardly think this is the reason. Blockbuster is probably part of the reason, but when people realize they wait for movies longer..etc, they'll likely change back.
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|I have no idea what cable company you have but the original poster said On Demand. On Demand service from my cable company is FREE not $5. FREE x 12+ = FREE, sounds better then $16/month to me.
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|Your cable company likely charges $45+ month for basic cable, amirite? So that isn't "free"
Nothing is "free" in the business world. if it is, it's with the intention of eventually gaining revenue in other mediums/later.
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|Its funny with Blockbuster you have to wait sometimes for the rentals to be mailed to you. But with the total access you can typically walk into said blockbuster and get the movie from there.
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|You are correct, so if your contention is that you can get netflix and cancel your cable then sure you'll save money. If that works for you then great but I highly doubt most people cancel their cable service when they get netflix... and if you are going to pay for your cable EITHER WAY, then getting movies via On Demand is at no ADDITIONAL cost which is a much better option then Netflix.
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|Netflix just cannot compete when you can bring your mailed movie to a store, search the shelves for a movie or game and walk out with a new free movie. Also when they scan in your existing movie that as mailed, it is released from your checked out queue and the new one is mailed right away.
If you pay 10 dollars per month for unlimited movies 1 at a time. One movie that is mailed to you is worth that.
I mean it just makes sense, blockbuster has a real winner here identical service as netflix with twice the movies per dvd delivered to your door. In fact you can get so many movies I find myself not even capable of watching them.
I mean think about the 3 at a time system, watch your 3 movies, bring 3 movies to the store, get 3 more, 3 more mailed to you 3 more at the store. I mean you could potentially watch 60 movies a month FOR 17 DOLLARS??? It's crazy. The sad thing is there just isn't enough good movies out there to watch.
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|I just (today) got all three Netflix movies I ordered and one of them isn't even oficially released until tomorrow.
I've had good luck with them. Only one movie wouldn't play due to scratches and they sent another one without me having to send back the bad one.
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|I don't mind not being able to go to the site since my queue is full, but I haven't received any notices of titles shipping, so I think their shipping process is down as well.
Pretty bad timing on their part and I can't believe they don't have it back up yet!
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|its actually listed 4pm pacific time not eastern standard... another push back or sloppy reporting?
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|ROFL@ the blockbuster ads on the Netflix story
now that is truly funny.
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|GREAT OBSERVATION!!! Also funny, is the google ads below the big Blockbuster ad... classic!
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|Less than 1% loss..... Call me when there is real news. Bah
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|Not to mention every disc I received from them was scratched so bad that they could not be watched , I didn't make it past the trial.
that was 7 discs btw.
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|I have been with them for over a year and have only received one disc that would not play -- the disc was cracked.
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|A ~0.82% loss if my calcs are close. Seems to help support the idea that Blockbuster is affecting them in some way.
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