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Old 12-06-2004, 03:30 PM   #1
Default Netflix Business Model


Offering 3 outstanding DVDs hasn't changed.

But the current price of around $18/mo has dropped.

How are they making up for the drop in revenue?

Answer: Pacing.

Your average number of DVDs shipped per month will drop, even if you took
the DVDs out of the mailer and returned them minutes after opening them up,
while standing in the post office.

PACING and bending the truth about when they are shipping the next ones to
you.

Unfortunately, the CEO of Netflix is not old enough to realize that once you
**** off your customer base its impossible to rebuild it when competition is
as fierce as it is. In fact, he should be trying to offer the same service
as he had before, but at the lower price until he destroys the competition.





Gary
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Old 12-06-2004, 03:56 PM   #2
Incremental Jones
 
Posts: n/a
Default Re: Netflix Business Model

"Gary" <> wrote in message
news:dW_sd.817$x26.338@trndny03...
> Offering 3 outstanding DVDs hasn't changed.
>
> But the current price of around $18/mo has dropped.
>
> How are they making up for the drop in revenue?
>
> Answer: Pacing.
>
> Your average number of DVDs shipped per month will drop, even if you took
> the DVDs out of the mailer and returned them minutes after opening them
> up,
> while standing in the post office.
>
> PACING and bending the truth about when they are shipping the next ones to
> you.
>
> Unfortunately, the CEO of Netflix is not old enough to realize that once
> you
> **** off your customer base its impossible to rebuild it when competition
> is
> as fierce as it is. In fact, he should be trying to offer the same service
> as he had before, but at the lower price until he destroys the
> competition.



You are right of course, but you are about to be deluged in this newsgroup
with Netflix shills who will insist you have no proof that the pacing
occurs.




Incremental Jones
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Old 12-06-2004, 04:19 PM   #3
Pug Fugley
 
Posts: n/a
Default Re: Netflix Business Model
I put 3 movies in my mailbox on Friday. The mail picked them up sometime
after 4pm. Now it's Monday, they received all 3, and I now have 3 more
movies on the way that are supposed to be released TOMORROW. Pacing my ass.
If this is pacing, pace away I say.



"Gary" <> wrote in message
news:dW_sd.817$x26.338@trndny03...
> Offering 3 outstanding DVDs hasn't changed.
>
> But the current price of around $18/mo has dropped.
>
> How are they making up for the drop in revenue?
>
> Answer: Pacing.
>
> Your average number of DVDs shipped per month will drop, even if you took
> the DVDs out of the mailer and returned them minutes after opening them

up,
> while standing in the post office.
>
> PACING and bending the truth about when they are shipping the next ones to
> you.
>
> Unfortunately, the CEO of Netflix is not old enough to realize that once

you
> **** off your customer base its impossible to rebuild it when competition

is
> as fierce as it is. In fact, he should be trying to offer the same service
> as he had before, but at the lower price until he destroys the

competition.
>
>
>





Pug Fugley
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Old 12-06-2004, 04:43 PM   #4
SoHillsGuy
 
Posts: n/a
Default Re: Netflix Business Model
<< You are right of course, but you are about to be deluged in this newsgroup
with Netflix shills who will insist you have no proof that the pacing
occurs. >><BR><BR>


Which he doesn't...


SoHillsGuy
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Old 12-06-2004, 04:50 PM   #5
One-Shot Scot
 
Posts: n/a
Default Re: Netflix Business Model
"Incremental Jones" <> wrote in message
news:_i%sd.2244$ m...
>
> "Gary" <> wrote in message
> news:dW_sd.817$x26.338@trndny03...
> > Offering 3 outstanding DVDs hasn't changed.
> >
> > But the current price of around $18/mo has dropped.
> >
> > How are they making up for the drop in revenue?
> >
> > Answer: Pacing.


(Snip-a-dee-do-dah)


> You are right of course, but you are about to be deluged in this
> newsgroup with Netflix shills who will insist you have no proof that
> the pacing occurs.



The theory that Netflix engages in "pacing" can be verified by this
classic study, _An Analysis of Netflix's DVD Allocation System_:

http://dvd-rent-test.dreamhost.com/




One-Shot Scot
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Old 12-06-2004, 05:05 PM   #6
Incremental Jones
 
Posts: n/a
Default Re: Netflix Business Model
"One-Shot Scot" <> wrote in message
newssOdndTQRv73ECncRVn-...

>> > Answer: Pacing.

>
> (Snip-a-dee-do-dah)
>
>
>> You are right of course, but you are about to be deluged in this
>> newsgroup with Netflix shills who will insist you have no proof that
>> the pacing occurs.

>
>
> The theory that Netflix engages in "pacing" can be verified by this
> classic study, _An Analysis of Netflix's DVD Allocation System_:
>
> http://dvd-rent-test.dreamhost.com/



You are right of course, but you are about to be further deluged in this
newsgroup with Netflix shills who will insist that the analysis on the web
site does not constitute proof, along with their own personal anecdotes
about how they always mail 3 back and get 3 the next day for months on end,
even on Sundays and Holidays etc.





Incremental Jones
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Old 12-06-2004, 05:17 PM   #7
SoHillsGuy
 
Posts: n/a
Default Re: Netflix Business Model
<< The theory that Netflix engages in "pacing" can be verified by this
classic study, _An Analysis of Netflix's DVD Allocation System_: >><BR><BR>



Where anywhere on this sheet are theories 'verified'? It's nothing more than
one person's glorified theories connected with flimsy data by a person who
freely admits that he is not a statistician or a scientist, adding "it is very
possible my conclusions are incorrect..."


SoHillsGuy
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Old 12-06-2004, 05:45 PM   #8
John Doe
 
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Default Re: Netflix Business Model
This is like saying one has to be a programmer to know if Microsoft is
releasing buggy insecure crap. Common sense and observation is plenty most
of the time. Say that only a scientist or statistician are the only ones
that make such a judgment is just stupid.

John


"SoHillsGuy" <> wrote in message
news:...
>
> Where anywhere on this sheet are theories 'verified'? It's nothing more
> than
> one person's glorified theories connected with flimsy data by a person who
> freely admits that he is not a statistician or a scientist, adding "it is
> very
> possible my conclusions are incorrect..."





John Doe
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Old 12-06-2004, 06:30 PM   #9
One-Shot Scot
 
Posts: n/a
Default Re: Netflix Business Model
"Incremental Jones" <> wrote in message
newsj0td.40781$. com...
"One-Shot Scot" <> wrote in message
newssOdndTQRv73ECncRVn-...

>> > Answer: Pacing.

>
> (Snip-a-dee-do-dah)
>
>
>> You are right of course, but you are about to be deluged in this
>> newsgroup with Netflix shills who will insist you have no proof that
>> the pacing occurs.

>
>
> The theory that Netflix engages in "pacing" can be verified by this
> classic study, _An Analysis of Netflix's DVD Allocation System_:
>
> http://dvd-rent-test.dreamhost.com/



<<You are right of course, but you are about to be further deluged in
this newsgroup with Netflix shills who will insist that the analysis on
the web site does not constitute proof, along with their own personal
anecdotes about how they always mail 3 back and get 3 the next day for
months on end, even on Sundays and Holidays etc.>>


And the situation is always variable. On Saturday, I mailed back two
DVDs to Netflix' San Jose hub and got this good news this morning:

1. Maria Full of Grace R Drama Shipping today

2. The Bourne Supremacy PG-13 Thrillers Shipping today

Even though I was spring-loaded with Monday morning disks in the Netflix
bank, I was unable to get these two titles, which have been listed and
#1 and #2 choices in my queue ever since they were released:

1. Around the World in 80 Days PG Action & Adventure Long Wait

2. Norah Jones: Live in 2004 NR Music & Musicals Very Long Wait

Sometimes you win, sometimes you lose. There doesn't seem to be any
pattern to it.

But don't get me wrong. A Netflix subscription is still a MUCH, MUCH,
MUCH better deal than renting from Blockbuster or Hollywood. If I want
badly enough to see the few wait list movies that occur a couple of
times a year, I can always rent them from local video stores.




One-Shot Scot
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Old 12-06-2004, 07:04 PM   #10
SoHillsGuy
 
Posts: n/a
Default Re: Netflix Business Model
<< Say that only a scientist or statistician are the only ones
that make such a judgment is just stupid. >><BR><BR>


I'm just quoting his own statements.

To be more accurate, his data is based on a very small number of accounts in a
small survey of distribution outlets in just three different markets. Hardly
a fair sampling. Plenty of other variables could easily come into play to
affect his data and outcome.

His theories don't even address 'pacing' as being discussed here. Yes, he had
a weak comment from Netflix (one denied shortly thereafter) that they may give
popular movies to newer customers. Even if one would admit this might be true,
it is hardly the same argument as pacing. IF TRUE, a theory that older
customer A might not get the newer movie going to newer customer B doesn't say
that customer A isn't getting another selection at all.


SoHillsGuy
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