Is the Netflix backup a conspiracy? Nope

by Ben Drawbaugh posted Jan 16th 2008 at 12:04PM

A few Netflix users at AVS have reported that customer service reps are blaming the Netflix HD movie backup on the studios. The story goes on to say that it's a conspiracy devised by the studios as a way to get you to buy rather than rent. We dropped a quick email to a studio exec, and after he got done laughing, he gave us a call and said, "However fans want Blu-ray, we'll deliver it." So there you go Netflix, no more excuses. Just start pumping up the stock of new releases so we don't have to wait as long to enjoy the latest movies in Hi-Def.

Filed under: Industry, Blu-ray, HD DVD

Tags: AVS forum, AvsForum, Netflix

Reader Comments (Page 1 of 1)

Neutral

Xyzzy @ Jan 16th 2008 12:16PM

Like you'd expect the exec to say, "Yeah, that's what we're doing, you caught us!" Please, that's not confirmation at all.

That said, I don't really believe that's the case myself, but hey.

Neutral

Sean @ Jan 16th 2008 12:12PM

lol even if it were true the studio wouldnt say anything. I think Netflix just doesnt have the supply to meet the demand.

Neutral

Ben @ Jan 16th 2008 12:17PM

I believe him, if it were true wouldn't of responded at all.

Neutral

andy @ Jan 16th 2008 1:42PM

You mean like that other certain studio exec who replied to the rumors of Warner going blu-ray exclusive by denying them?

They're liars. Period. I don't believe a word one of these execs says.

That said, I think Netflix is trying to limit their inventory, not the studios, but they need to beef it up a bit because it's clearly VERY short of the demand, not just a little short when EVERY HD title on any format is "very long wait."

Neutral

Jonny @ Jan 16th 2008 12:25PM

My Queue is fine, just fine

The only thing that's backed up on mine is Planet Earth and Superbad.. everything else is available now

Out of maybe 30 Blu Rays

Neutral

JB @ Jan 16th 2008 12:42PM

only 9 of 32 Blu-Ray's are available in my queue...Ironically it's the 9 at the bottom of the list.

Neutral

JVirg1 @ Jan 16th 2008 12:44PM

This seems to be ALL NEW RELEASES, not just Hi Def ones. I have a standard DVD movie in my queue from a Dec 2nd release still showing very long wait. And Eastern Promisses which was released on Dec 23rd has a very long wait still for both the DVD and HD DVD versions. I think they just don't order enough new copies of anything. I am thinking of dropping them.

Neutral

Big Sam @ Jan 16th 2008 12:44PM

Obviously its Netflix's fault.

Anything HD that's come out within the past 3 or 4 months has an extended wait.

Highly Ranked

Mr. E @ Jan 16th 2008 12:46PM

I dropped out of Netflix long ago because of ridiculously long queue waits on the movies I wanted to see. Sounds like things really haven't changed that much since I left.

Highly Ranked

BrokenFERN @ Jan 16th 2008 5:44PM

I dropped them for the SAME reason. It was getting ridiculous.

I had Casino Royale (dvd) in my queue for 5 weeks before the movie was released. Then it was listed as "Very Long Wait" for 3 1/2 months after it was release. This was happening a lot so I finally dropped Netflix. I never did see Casino Royal.

Highest Ranked

Kyle Waitkunas @ Jan 16th 2008 12:53PM

http://img528.imageshack.us/img528/5308/unacceptableho7.jpg

Sigh...

(Cleveland, OH area)

Neutral

bobby @ Jan 16th 2008 1:03PM

I dont know what unlucky people you all are, but i dont have any backup at all with netflix. When new movies come out, I am willing to wait a day or two, and doing that has never left me waiting. Most likely the hi-def customers are holding onto their discs longer than we'd all like them to. I know i've been guilty of it at least once.

Highest Ranked

Ryan J. @ Jan 16th 2008 1:08PM

Why isn't Blockbuster included in this article??? They have the EXACT same problem.

Neutral

bob @ Jan 16th 2008 4:42PM

Blockbuster is horrible at this point, all but one in my queue is not available. I'm actually dropping them tomorrow, no need to just be waiting for nothing.

Neutral

steedums @ Jan 16th 2008 1:18PM

your waits are also based on "usage", so if they don't like your viewing pattern, your waits are longer.

Neutral

Wryker @ Jan 16th 2008 1:20PM

Yup - the faster you 'flip'em' the worse they get sending you stuff (new releases ESPECIALLY!)

Neutral

Big Sam @ Jan 16th 2008 2:20PM

I only watch 2 movies a month, so I doubt they are throttling me.

Highly Ranked

BrokenFERN @ Jan 17th 2008 3:58PM

Is this true? If it is then it explains a lot.
A LOT!

Receive 3 movies Monday, copied...er... I mean watched them that same night. Tuesday they were already in the mail back back to netflix. Rinse and repeat.

Neutral

Che @ Jan 18th 2008 7:29PM

BrokenFern, And once you've copied a few hundred you're planning on dropping (or downgrading) your Netflix subscription while you watch them all right? And you're probably really surprised that they'd be such jerks as to slow down shipments to you too. If you're ripping them off, don't be surprised if they throttle your service a bit. They're losing money on you even with the throttling, assuming they actually do that.

Neutral

zachary miller @ Jan 16th 2008 1:36PM

It's not totally their fault. They are a business and they do have to make profits. Hi-def movies do cost more than regular dvd's. They buy just enough hi-def movies in either format and then send them out. You know that mail doesn't move on sunday and there is a turn around time for someone else to get the movie before you. You should try sending your movies back on a saturday so that you'll be first to get a new release right on Tuesday as long as the new release is at the top of your queue. That's how I have been always able to get new releases right away.

Neutral

HD Tom @ Jan 16th 2008 1:49PM

When I called a couple weeks back, they told me they were "working on a strategy to improve on this." I have a simple solution - BUY MORE DISKS!!!!

Neutral

Andrew @ Jan 16th 2008 1:50PM

Maybe Netflix needs to begin to charge extra for those who want HD or Blu Ray movies. Then the extra cost of these discs would not be a factor with their poor inventory. I would happily pay a few dollars extra a month to get HD movies when I want them.

Neutral

mntwister @ Jan 16th 2008 6:34PM

I agree with you, I would be willing to pay a few dollars more to get the new high def blu ray releases faster. I am usually able to get older BD releases right away, but the new Pirates, Die Hard, Simpsons Movie, Santa Clause 3 have been very long waits since the day they came out. I have had better luck with Blockbuster Online getting them faster, as I am a member of both, but it isn't all that much better.

Netflix is adding thousands of customers a week, probably alot more, but seems they are adding fewer copies and it doesn't equal out.

Neutral

Ken @ Jan 16th 2008 2:04PM

Few things that come to mind:

-Boost profits by getting more customers and NOT increasing inventory (free money!)
-HD discs are more expensive, so they will have fewer available, or maybe they simply did not predict this much demand and are hesitant to add more
-By creating artificial scarcity, this lowers the number of movies per customer per month. The less movies that get flipped per month, the more revenue they retain
-Maybe they are pushing people to use their cheaper online viewing by frustrating them with long physical media wait times

No matter what, its certainly not a good business move, as people can just walk away. Sure, might be profitable for a few months, but this gives Blockbuster a chance to steal countless thousands of customers if they step up to the plate with plenty of movies and equal pricing.

Neutral

Cody @ Jan 16th 2008 2:42PM

Anyone noticed that some of the discs come looking deliberately scratched up. I received Bourne Ultimatum HD-DVD from Netflix and it was scratched up so badly and I had to watch the dvd side for the end of the movie. it had been out maybe a week when I received it. I also received Planet Earth disk 2 blu-ray from Blockbuster online and it had symetrical, deep scratches in several places. Unplayable. It looked like someone dragged a fork, a very sharp fork across the disc. Very strange. How does that happen. I mean you take the disc out of the envelope, put it in the player and then back in the envelope. How can these discs be so badly damaged?

Neutral

lucyfan62 @ Jan 16th 2008 2:46PM

I have 13 Blu-Ray titles in my queue, including SUPERBAD and PLANET EARTH and all show as available now.

Neutral

rudiger @ Jan 16th 2008 10:27PM

This is why I left Blockbuster and why I will leave Netflix if they don't fix this problem soon.

If I have to wait for HD content, I will go the Apple TV download route. I have seen their HD podcasts using AppleTV on my plasma and if their HD movie content comes close to that quality, then goodbye NetFlix.

Been waiting Tivo/Unbox to come through with HD downloads. Guess what, I'm still waiting. Hopefully they will get some HD content which will start a price war with Apple/iTunes.

Neutral

Jonny @ Jan 16th 2008 3:29PM

Hmm....

Neutral

Jody @ Jan 16th 2008 3:09PM

I would have to blame this on Netflix. They have moved away from revenue sharing agreements and purchase copies of movies from the studios now. I would say that growth of the HD market has overrun their abilty to obtain additional content. They have spent a lot of money increasing the size of thier library but probably very little of it for the HD market. I can't say I blame them since they have over 7mm subscribers and there are less then 4mm HD movie players out there (less depending on how you factor the PS3).

Here is an excerpt of their 10k from May:

"� Content amortization increased by 77%. This increase was primarily attributable to increased acquisitions for our content library in order to support the growth in or subscriber base."

Neutral

roger_huston @ Jan 16th 2008 8:50PM

Thanks for this. I have updated my queue to all DVD's and now everything is available.

When I talked to Netflix, they said that the studio's give them only a certain number of Discs and they can't order more than that, so that is why it is so long.

- Roger

Neutral

hoostie @ Jan 17th 2008 8:54PM

It seems like it depends on where you live. I receive most hd dvd's or blu ray in the normal time. Everyone says that it's taking forever, it seems to be normal for me. I live in Kansas City, and it seems that most of the movies I order are coming from downtown.

Neutral

Ed @ Jan 16th 2008 3:40PM

I wonder if more people are watching discs since the TV writers' strike started. I know I have...

Neutral

JeffDM @ Jan 16th 2008 6:29PM

The delays have really piled up in the last couple weeks, so I think it's people getting their HD players for Christmas and starting to *gasp* use them. A glut of new users can cause this problem. Before Christmas, the only problem titles that I've ever seen were 300, Shrek 3 and Spider-Man. Now, it's a lot worse, but I did just now get Shrek 3.

Neutral

Neeko @ Jan 18th 2008 2:53PM

hey i dont have nay delay on my list.. All the HDDVDs i want are avail.. Sorry for you guys but iam still happy with netflix.

Neutral

Spiza @ Jan 16th 2008 7:12PM

Just got these in emails and I live in Indiana:

Your movie was not available at your local shipping center. We sent it from Boise, ID and expect it to arrive on Friday, Jan 18, 2008.

Your movie was not available at your local shipping center. We sent it from Salem, OR and expect it to arrive on Friday, Jan 18, 2008.

If they are doing that a lot, thats got to kill some of the time.

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