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Will Netflix Survive in the Face of Increasing Competition?

New Blockbuster service from DISH may give it a run for its money

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There are 62 Comments. Add Yours.
  1. Joseph

    Will Netflix survive , I think the answer that yes it will.
    But the better question would be what sort of Revenue and Income numbers are we going to see come the end of Q3 next year after Netflix has completed their transition to a company that offers only B level movies and non current television programing. For many Netflix customers they opted for the service to watch great quality movies and to stream some of the latest movies being released via disk. With the move to focusing on television content that is available via stream from 1/2 a dozen Netflix competitors it can be assumed they are going to lose some market share even given the integration with Facebook.

    • I certainly signed up for the dvd selection once upon a time, and the streaming was just an added perk. It’s not so much about the format (streaming vs. disc) as it is selection.

  2. Sandy S

    I have already cancelled both the DVD and streaming plans as of Monday due to Reed Hastings latest Netflix flub.

  3. Gina

    I’m going to cancel this weekend (I want to empty my queue and get the DVDs in the mail first). I’m not using it like a used to – there’s just not enough new content. I’m going to join Amazon Prime. I shop there anyway, so I’m getting more for my money. Plus, I think one of the big guys – like Amazon or Apple, will win the money fight for content. They just have more weight and assets to go up against the studios.

  4. wes

    Assuming the catch with the Dish Network deal is that you already have to subscribe to their TV service. I currently use Netflix as my only means of TV entertaiment (get my news and such from the Internet). I still think Netflix is an economical service, even with the price increase. Sticking with it for now.

  5. johnson

    I empty my queue and return my last two dvds today. Once i get my notice via email that they gotten my dvds, Im going to cancel netflix and sign up with blockbusters.

  6. Fezz

    It will stand the storm. There are those of us who have been there from day one and will stay regardless…

  7. Well, I would like to know what the alternative is? We do not have dish and the whole reason we got netflix is so we won’t have to pay for dish. We do not have access to cable. I am so sorry that netflix seems to be going downhill and we may have to just stop the service and start renting from the local video store again. I don’t see much else available for streaming movies to the TV. Thanks and have a blessed day all.

  8. John Buxbaum

    I bailed on the dvd part of my membership, and I’ll stick with the streaming as long as I have no option on my Xbox. If another comparable streaming provider arrives for the Xbox I might change. It is very disappointing what they did. The price point they were at was sustainable by the average subscriber, balancing value for money, and it was a growth point for them. However in the best liberal mentality that seeks to grab as much money from people possible in the short term they raised their prices. Backfire….

  9. Jennifer Hess

    Hell NO I am not staying with it. The price change for bad quality online streaming PLUS the fact that I have been getting tons of DAMAGED DVD’s and then I have to wait for another one? Forget that I am already looking for another alternative!

  10. ted

    Netflix got greedy; I say “Let ‘em dangle!”
    F8? (Facebook) ? The world’s largest backyard fence …over which “everyone” can gossip / lie / ego-trip with anyone who will listen & owns a keyBORED. lol

    • Michelle

      I agree, Netflix pretty much had the market locked up until they lost site of their customers, made changes to the website that are very non-user friendly (to be nice) not to mention the price increase. Now they are doing away with mailing dvd’s all together, so what was the point of shafting customers with a price hike to begin with? Thing they got a little derailed regarding who keeps them in business.

  11. It depends netflix doesn’t have a lot of new content as is, and with them losing sony, I am curious to what they will do fill that void, the jurys still out for me on this one for now.

  12. swim

    We just put our account on hold. We’re planning to try out Amazon’s service. Might even look into dish. We have been disappointed by damaged DVDs in recent months and problems with some (not all) streaming movies. When the price announcement came out we were annoyed like many others. I HOPE the competition takes this as their opportunity to be better not just in price, but examine how Netflix used to have their site designed and their features (i.e. rollovers with movie descriptions). Netflix still has everyone beat in user interface design.

  13. I used to be a Netflix subscriber until I developed hearing issues. Now I have ditched Netflix and actively encourage others to as well, mainly because of their disregard for their Deaf and Hearing impaired customers by not including captioning (subtitles) on all of their content.

    Even after many attempts to communicate with Netflix about this issue, they refuse to respond. Some months back I started the Netflix Petition, which now has over 6,000 signatures: http://www.change.org/petitions/netflix-make-films-accessible-for-the-deaf-hoh

    With Reed Hastings, CEO of Netflix, now on the board of Facebook, it seems he’ll be assisting in bringing down both Netflix and Facebook.

    The answer is… Consumers have a choice – either support or NOT support a business. If any service continues to change in a manner that doesn’t satisfy it’s customers then the customers should no longer support that business, even if it means they have to do without until other options become available.

    • Ryan Kempf

      yes great point I am have a Physical disability and I know all to well the lack of accommodations sometimes

  14. Additionally, Netflix subscribers should READ the Netflix Terms of Use Agreement, which was changed on September 5, 2011, Netflix altered their TERMS OF USE:

    “These Terms of Use provide that all disputes between you and Netflix will be resolved by BINDING ARBITRATION. YOU AGREE TO GIVE UP YOUR RIGHT TO GO TO COURT to assert or defend your rights”

  15. Derek

    We joined as streaming-only last year and were never members of Netflix DVD-by-mail. No price increase for us, but I understand that Netflix botched their change with customers who had both, requiring you cancel Netflix completely if you wanted to drop the mail option and keep the streaming only option. I have looked at VUDU, BlockBuster, and Amazon.com’s streaming services and two of their average movies cost as much as one entire month of 7/24 Netflix streaming. That is an undeniable and overwhelming advantage for Netflix. Even Hulu is not competitive in offerings. I am only upset with Starz/Sony who were not happy with $300 million a year, opting to leave Netflix because Netflix was NOT willing to charge for Starz/Sony titles per view, like VUDU, Blockbuster, and Amazon.com. That was a very wise decision by Netflix. I expect Netflix will put the $300 million per year to good use buying premium movies/content.

  16. Seems to me that the streaming portion still beats the high price of cable..dvds will be dead soon anyway.

  17. Sarah Richards

    I’ve been a Netflix subscriber for years. I’m ok with going to streaming only, I don’t bother with DVD’s anymore. I looked at Starz website and it was too convoluted to figure out how to stream a movie through them. I much prefer the simplicity of Netflix. I don’t know if I’ll bother to watch the Starz movies if they aren’t available through Netflix. If I do watch some (somehow) it won’t be as many of them if I have to pay extra and pay for each one, and I surely won’t join a “cable-like” subscription service wherein I have to watch at a certain time of day.

  18. Craig

    I also have been a Netfix member for many years. Unlike others, I’ve never been impressed with the selection in their streaming media offerings and have opted to mostly use their DVD/Blu-ray service. The loss of Starz also means the loss of quite a bit of the best movies with the streaming service. I understand Starz represents Disney, Sony, Columbia, Tristar and other studios, so it doesn’t just mean that a few Starz movies will drop out.

    DVDs may be dying, but Blu-ray is not. A very large percentage of people in the USA have ISPs with poor quality Internet connects, which limits their ability to enjoy streaming movies uninterrupted. Blu-ray will be around for a while.

    I did cancel the streaming media part of the subscription. If they screw up their DVD service when it moves to the new company, I will dump that, as well.

  19. Rick Willard

    I don’t mind losing the DVD portion. Selection is really not very good. Like the streaming offerings a lot. Using AppleTV and like it as way to access NetFlix. AppleTV is excellent, too.
    Have the ability to buy movies with AT&T now, will do that instead.
    DVD’s are going to die. I think that NetFlix was very smart in breaking to two up and will stay with the streaming for now.

  20. Long-Time Netflix member.
    I am, of course, dismayed at this turn of events. I considered going ‘streaming only’ but the SELECTION is so much smaller, so much ‘dumber’ that I have been reluctant to give up the DVDs.
    I also have experienced the high number of damaged DVDs and with the threat looming of loss of postal deliveries altogether, I am sure we all will be stuck with streaming-only soon enough.
    I have Directv & a contract so no option of going with DISH which I wouldn’t want to anyway.
    So, here we all are, pawns in the game.

  21. I dropped Netflix altogether due to increased prices and poor selection of streaming video movies. 95% of movies I liked were not available for streaming. Frustrated!

  22. Tony Hupmat

    I have already terminated my subscription. We used steaming (once a week) and maybe received 1 BR DVD every two months. I can’t justify the pricing for 6 BR DVD’s a year. Quit the steaming because NetFlix frankly P—-ed me off. Had been a Netflix customer for many years.

    In my opinion it was a brilliant move my management to destroy an Icon of the industry.

  23. Doug

    Think Netflix has gone the route of so many companies that grow — it wants to maximize profits. Understandable, but as a consumer we have choices in this country as long as the politicans stay out of this one! Let the marketplace decide. We are seriously considering switching back to DISH which we dropped because Netflix and Hulu satistifed our needs in viewing. We had no TV connection, but the desire for more profits from Netflix will perhaps be their downfall. And with Amazon making plans to offer more they become a bigger player. Love seeing the marketplace work itself out. Capitalism at it’s best!

  24. I am “venus in taurus” astologically speaking – I am in my element when the moment demands loyalty, so I am trying to stay with Netflix but if they give less and charge more that’s not nice, and I won’t be able to “hang in”.

    The whole point of Netflix for me was the “one-stop-shopping” for video…worth price. I have been a member since they began. NOT happy.

    elle

  25. I think Reed Hastings is having biz fun being Rhett Butler and swashbuckling along, relishing the wild ride in the stock market at our expense.

    But if you give less and demand more , you’ll lose in the end….I expected him to offer free gifts and benefits to old customers like me to compensate us for our inconvenience…but, no.

    So he can talk to himself soon if he does not do a more gracious job of it.

  26. Alex

    After being a member since it inception … Netflix turned their back to loyal members. they dropped.their selection with the loss of starz content, raised prices, lowered service speed. I dont know why I havent canceled yet… But will definitely cancel this service as noone enjoys being ripped off.

  27. I love Netflix but this may be difficultmto recover from. I hope they step up for their loyal client base.

  28. Netflix made a bad business decision. (I’ve heard) … Certain of their content suppliers wanted a new payment deal, they want a cut of the action similar the cable TV content suppliers (like HBO, ESPN, etc.). In order for Netflix to work the deal they split into two and raised prices. It hurt them, for how long …???
    But all things are relative and in time Netflix will go the way of the cave drawings, the buggy whip, Mom & Pop video store, BlockBuster … greed, bad business decisions, technology and unforeseen happenings & forces have always come into play … roll the dice, it’s just a matter of time.

  29. Angelo Pavone

    Blockbuster Video actually has a better dvd by mail program then netflix. Free blu-ray upgrade, new releases 28 days ealier, and if you watch your movie you can return it to your local blockbuster and get a new movie as many time as you want.
    So now the question is how is there unlimited streaming going to be and how much. A lower price with more content will destroy netfilx.

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