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The Netflix SCAM!!

 
 
Derek Janssen
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      02-11-2006
Bob wrote:
> On Sat, 11 Feb 2006 05:51:31 -0800, Sam Rouse <(E-Mail Removed)>
> wrote:
>
>
>>All that this crusade is going to accomplish (if anything) is that Netflix will
>>change their advertising, and/or apply a different monthly limit to each of the
>>X-out plans. If the latter, those who normally rent within Netflix's profitable
>>range will lose out on those rare times when they want (and are able) to turn a
>>bunch of flicks around faster than normal. Either way, the crusaders will have
>>their parade, and it will make no difference as to whether they find the service
>>to be worth the monthly fee.

>
>
> You are leaving out one important fact of reality, namely that NF does
> not own the rental DVD market on a permanent basis.


....YET.

Derek Janssen (wanna take another bash at it, Wal-Mart?)
http://www.velocityreviews.com/forums/(E-Mail Removed)
 
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Bob
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      02-11-2006
On Sat, 11 Feb 2006 11:32:04 -0500, Derek Janssen
<(E-Mail Removed)> wrote:

>> You are leaving out one important fact of reality, namely that NF does
>> not own the rental DVD market on a permanent basis.


>...YET.


They are in it for the quick buck. This throttling is a sure sign they
are trying to squeeze the last drop of profit out of it. When
throttling backfires, it's gonna be a whole new ballgame.

Of course those who are perpetrating this will be snorkling in the
Camuns or odling in the Alps when the **** hits the fan. Time to
consider shorting NF stock - not right now but keep an eye out for a
top in their share price.


--

"It has been said that politics is the second oldest profession.
I have learned that it bears a striking resemblance to the first."
--Ronald Reagan
 
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NFord
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      02-11-2006
"Bob" <(E-Mail Removed)> wrote in message news:(E-Mail Removed)...
> On Sat, 11 Feb 2006 05:51:31 -0800, Sam Rouse <(E-Mail Removed)>
> wrote:
>
> You are leaving out one important fact of reality, namely that NF does
> not own the rental DVD market on a permanent basis. Someone is going
> to come along and provide what the market wants for the price the
> market is willing to pay.


A very good analogy to the cable TV companies.
Around here, Cox Cable had a monopoly on broadband
internet and :
1. Forced customers to subscribe to their crappy cable
TV to get broadband (which they lyingly advertised
as "digital", even though all but the premium channels
were analog, though transmitted to customers digitally,
ghosts, static and all)
2. Raised rates repeatedly.
3. Took away channels.

Then DSL came along and all of a sudden, Cox couldn't
be nicer. Too little, too late for them. Some day, NF
will get their's.

My pet peeve is lying advertisers. If I were Supreme
Commander of the United States, the first thing I would
do is crack down on false advertising:

Pictures of food that look like gourmet meals when the
stuff inside the package looks like wet cardboard?
Hang 'em!!

Promising 1-day delivery and taking 3-4 days?
Off with their heads!!


 
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Sam Rouse
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      02-11-2006
In article <(E-Mail Removed)>, (E-Mail Removed) (Bob)
wrote:

> On Sat, 11 Feb 2006 05:51:31 -0800, Sam Rouse <(E-Mail Removed)>
> wrote:
>
> >All that this crusade is going to accomplish (if anything) is that Netflix
> >will
> >change their advertising, and/or apply a different monthly limit to each of
> >the
> >X-out plans. If the latter, those who normally rent within Netflix's
> >profitable
> >range will lose out on those rare times when they want (and are able) to
> >turn a
> >bunch of flicks around faster than normal. Either way, the crusaders will
> >have
> >their parade, and it will make no difference as to whether they find the
> >service
> >to be worth the monthly fee.

>
> You are leaving out one important fact of reality, namely that NF does
> not own the rental DVD market on a permanent basis. Someone is going
> to come along and provide what the market wants for the price the
> market is willing to pay.


Not unless they can make a reasonable profit, they won't. Others have tried
already, and failed (unless you don't consider Blockbuster's universally
reported worse service to be a failure).

> If NF was profitable before it began throttling, then why does it need
> to throttle now?


I seem to recall that they hadn't made a profit until the last year or so.

> According to that article referenced earlier at
>
> http://news.yahoo.com/s/ap/20060211/...x_throttling_6
>
> NF claims it costs 78 cents in postage alone. Bullshit. That's what an
> individual has to pay for First Class postage. NF has some sweetheart
> bulk mail deal with the USPS. I am not going to attempt to guess what
> the real cost is, but it sure isn't the same as putting 39 cent stamps
> on a letter.


Don't know. Maybe.

> NF has gotten greedy, and that ALWAYS comes around.


NF wants to make a profit, which they didn't for the first several years of
their existence, as they built customer base and infrastructure. 13 discs per
month for $17.99 is still a good deal, even if you don't count the size of the
library and curbside service. What I see here is a handful of folks who, for
whatever reason, have the time and desire to get more DVDs than the majority of
NF customers want. Most folks simply don't have the time to watch more than
that, or the desire to build a giant library of ripped copies that they'll never
watch more than once, anyway. So, my prediction is that throttling won't stop
(or perhaps a limit will be imposed, but I hope not), advertising will change,
Netflix will continue to be successful, and a small percentage of folks will
continue to whine.

> I want to see movies downloaded.


It's undoubtedly coming. Depending on your cable company, you probably already
have on-demand pay-per-view, but I'll bet that isn't the price point you want.
 
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Bob
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      02-11-2006
On Sat, 11 Feb 2006 18:28:35 GMT, "NFord"
<nrfordsbcnwsgrp@REMOVE_THIS_cardsharkgames.com> wrote:

>Promising 1-day delivery and taking 3-4 days?
>Off with their heads!!


In East Texas they would get chained to the back of a pickup.


--

"It has been said that politics is the second oldest profession.
I have learned that it bears a striking resemblance to the first."
--Ronald Reagan
 
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afn03488@afn.org
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      02-11-2006
Bob wrote:

> NF claims it costs 78 cents in postage alone. Bullshit. That's what an
> individual has to pay for First Class postage. NF has some sweetheart
> bulk mail deal with the USPS. I am not going to attempt to guess what
> the real cost is, but it sure isn't the same as putting 39 cent stamps
> on a letter.


For payment of an annual fee of $160 and mailing prebarcoded and
presorted lots of 500 or more each NetFlix warehouse can mail its
outgoing DVDs for between a low of 29 cents [sorted to an individual
letter carrier, can't be used if the destination PO has equipment for
scheme sortation] and 32.6 cents [residual automated pieces not
sorted to a finer level]. Most will probably go between 29.3 cents [125
pieces to a 5 digit zip code] and 30.8 cents [125 pieces to a 3 digit
zip code group/SCF].

For payment of annual fees of $8260 each return address can receive
high volume [34,615 pieces per quarter] prebarcoded pieces for 36.6
cents each. I'm assuming they meet the volume requirements for the
rates quoted and the pieces qualify for the single ounce rate. I'm
curious how they actually manage the inventory to envelope to required
postal sortation. I imagine they have justified the cost of internal
barcode sorters.

 
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wunnuy
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Posts: n/a
 
      02-11-2006

Sam Rouse wrote:
> In article <(E-Mail Removed)>, (E-Mail Removed) (Bob)
>>

> NF wants to make a profit, which they didn't for the first several years of
> their existence, as they built customer base and infrastructure. 13 discs per
> month for $17.99 is still a good deal, even if you don't count the size of the
> library and curbside service. What I see here is a handful of folks who, for
> whatever reason, have the time and desire to get more DVDs than the majority of
> NF customers want. Most folks simply don't have the time to watch more than
> that, or the desire to build a giant library of ripped copies that they'll never
> watch more than once, anyway. So, my prediction is that throttling won't stop
> (or perhaps a limit will be imposed, but I hope not), advertising will change,
> Netflix will continue to be successful, and a small percentage of folks will
> continue to whine.
>


No one will "whine" if Netflix changes their advertising. If they say
"get as many as you want unless you get too many, we'll hold them back
a couple days" no one will whine because if that's what they do. I'm
sick of people who stick up for Netflix's false advertising by WHINING
that people who complain about it should just be happy with what they
get. That's not the point. The point is, Netflix claims one thing and
does the opposite. If they make "Throttling" part of their advertising,
then no one will "whine" (except for you I think).

 
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davesvideo@aol.com
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      02-11-2006
Bob wrote:

> NF claims it costs 78 cents in postage alone. Bullshit. That's what an
> individual has to pay for First Class postage. NF has some sweetheart
> bulk mail deal with the USPS. I am not going to attempt to guess what
> the real cost is,


You don't have to guess. The mail goes out as pre-sorted first class
and returns to them as first class. Since the mail goes out presorted
by zip code with less work for the PO, it is reasonable to charge a
lower rate. You could look it up, but sending it is probably about 24
cent and return 39 cent for a 63 cent total. So, if they claim 78 cents
it is most likely not true, and from USPS website one could figure out
exactly what they do pay.


Dave

 
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Jeff Rife
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Posts: n/a
 
      02-11-2006
((E-Mail Removed)) wrote in alt.video.dvd:
> I'm assuming they meet the volume requirements for the
> rates quoted and the pieces qualify for the single ounce rate.


That second part is probably the issue. Although I'm not familiar with
Netflix mailers, a DVD plus a fairly flimsy cardboard sleeve weighs
about 35 grams, which would put it just over the limit.

--
Jeff Rife |
| "Resistance...is *futile*"
|
| -- Data, "Star Trek: First Contact"
 
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Sam Rouse
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      02-11-2006
In article <(E-Mail Removed) .com>,
"wunnuy" <(E-Mail Removed)> wrote:

> Sam Rouse wrote:
> > In article <(E-Mail Removed)>, (E-Mail Removed)
> > (Bob)
> >>

> > NF wants to make a profit, which they didn't for the first several years of
> > their existence, as they built customer base and infrastructure. 13 discs
> > per
> > month for $17.99 is still a good deal, even if you don't count the size of
> > the
> > library and curbside service. What I see here is a handful of folks who,
> > for
> > whatever reason, have the time and desire to get more DVDs than the
> > majority of
> > NF customers want. Most folks simply don't have the time to watch more
> > than
> > that, or the desire to build a giant library of ripped copies that they'll
> > never
> > watch more than once, anyway. So, my prediction is that throttling won't
> > stop
> > (or perhaps a limit will be imposed, but I hope not), advertising will
> > change,
> > Netflix will continue to be successful, and a small percentage of folks
> > will
> > continue to whine.
> >

>
> No one will "whine" if Netflix changes their advertising. If they say
> "get as many as you want unless you get too many, we'll hold them back
> a couple days" no one will whine because if that's what they do.


Isn't that what it says in their terms of use?

I don't think "unlimited" is even an unreasonable claim, esp. as clarifed on
their website under terms of use. For my purposes, it _is_ unlimited - I get
all the flicks that I have the time and inclination to watch, and any individual
disc can be kept as long as I want without late fees. Nearly all shipments are
one day each way. I expect the same is true for the vast majority of NF
subscribers, as adjusted by choice of plan and charged accordingly.

I think you have an unreasonable expectation of what "unlimited" means. It
should be obvious that there is a limit, and that 3-out "unlimited" isn't going
to be the same as 9-out "unlimited." Why don't you go after the car companies
whose ads feature their vehicles driving underwater, or up vertical rock faces?

> I'm
> sick of people who stick up for Netflix's false advertising by WHINING
> that people who complain about it should just be happy with what they
> get. That's not the point. The point is, Netflix claims one thing and
> does the opposite. If they make "Throttling" part of their advertising,
> then no one will "whine" (except for you I think).


Well, if your little crusade results in a fixed monthly limit being applied, I
will have something to whine about on the rare weeks when I have the time and
desire to watch 7 movies in 7 days. As it stands now, when that happens, I
still get my more typical 3 per week for the rest of the month, with one-day
shipping.
 
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