Sunday, April 11, 2010
A brief rant on Netflix...
For my second topic this week, I was looking through IT news articles and came across a story on Netflix. According to the article, " New Netflix deals mean more streaming movies but longer wait for 'Avatar,' other DVDs", my beloved and faithful Netflix is changing, seemingly for the worse. The article explains that Netflix is focusing much more efforts toward its streaming media service. In turn, this is obviously using capital which Netflix previously allocated to purchasing new movies on disc for distribution to its customers.
Accordingly, movie production studios are supporting this trend by delaying the release of new movies to Netflix in order to sell more retail copies of movies at a much higher profit. In return, Netflix will have license to stream much more content from the same studios.
Personally, I use the Netflix service for both streaming and disc rental services, especially since I can play streaming Netflix movies through my Xbox now; but the real reason that i first subscribed to the service and continue to do so is because I can have access to the newest movies immediately without having to leave home.
This 'evolution' of Netflix instantly reminds me of the change in cellular phones over the years. Remember when our cell phones were just that - phones? Not cameras, not music players. not GPS trackers. Just phones. I was very happy with my old Motorola Startac with its pea-green lcd screen because it worked great. I had service nearly everywhere, and the battery seemed to last forever. Of course, over time, cellular companies decided that we needed massive color screens, high-resolution photographic capabilities, and ringtones! Sure it all looked pretty cool, but none of it worked well. I remember going through many of these phones as the hit the market. Each one seemed to have poorer call quality and a battery that lasted about half as long as the previous phone.
The point is, I really don't understand why tech-related companies can't find competitive advantage in their core businesses anymore. Perhaps this makes me a 'laggard' according to Gartner, or at very least resistant to technological advancement. I just think some things are better left the way they are, like a gun or a Bic lighter. They work because they are simple and they do what they were intended to do extremely simply and efficiently.
As an afterthought. maybe this is just the result of Wal-Mart's acquisition of VUDU. I'm sure Netflix is immensely worried about competing with Wal-Mart for streaming media subscribers. In that case, thanks for messin' with my Netflix, Wal-Mart!
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Uhmm. Like Smokey Robinson said "I second that emotion". I to am an increasingly more dissapointed Netflix customer. A couple of years ago their issue was providing new releases quicker to customers who purchased larger unlimited rental packages (i.e. those who had 3 DVD's at-a-time unlimited packages got new DVD's before those who had 2 or less). They were sued, settled and assured customers that they didn't provide preferential treatment to more valuable customers. Well at 3-DVD's at-a-time customer I was constantly waiting for new releases - I moved to 4 and bingo.. the next week long wait became short wait!
ReplyDeletePersonally, I'm fine with the Netflix deal that came through. I use Netflix primarily for the streaming nowadays, and the discs I receive in the mail are more of a supplement than anything else.
ReplyDeleteThose who are using Netflix for new releases may be disappointed, but I think Netflix's competitive advantage is not about the new releases, it's about wide selection and instant streaming.