Netflix CEO Comments On Recent Decisions 360
ExE122 writes "Netflix CEO Reed Hastings makes several comments about mistakes that were made over the past year. Hastings claimed, 'We moved too fast with it', [trying to exit the DVD-by-mail business] and explains that he still thinks Internet video will dominate in the coming years. From the article: 'Hastings also faced tough questions about last month's double-bomb disclosure: Netflix now expects to lose money for all of 2012, and it is looking to raise cash in a secondary offering of its stock.'"
Raise money by giving up a couple of lattes (Score:5, Informative)
All-Streaming is a Great Idea (Score:4, Informative)
I think that the decision to exit the DVD-by-mail market is a great one. Maybe it's just because I'm a college kid, but most people I know don't even bother renting DVDs anymore. As Netflix gains more and more licenses for various production companies, and their ability to stream online grows, nearly everyone I know has switched to exclusively streaming (I know I certainly have). Streaming is where the market is at, these days, since we're practically glued to our technology, particularly the internet.
Good on you, Netflix.
Re:All-Streaming is a Great Idea (Score:5, Informative)
I think that the decision to exit the DVD-by-mail market is a great one. Maybe it's just because I'm a college kid, but most people I know don't even bother renting DVDs anymore. As Netflix gains more and more licenses for various production companies, and their ability to stream online grows, nearly everyone I know has switched to exclusively streaming (I know I certainly have). Streaming is where the market is at, these days, since we're practically glued to our technology, particularly the internet.
Good on you, Netflix.
Hate to break it to you, but the Netflix "watch instantly" library is shrinking (unless you count 27 episodes/season of Dora the Explora as individual titles) since desirable content is getting much more expensive (see the Starz licensing situation). If you are happy with the streaming content then great, but make no mistake they are fighting a very hard battle and you will not be seeing very much new-new content on watch instantly in the coming year or two.
Re:All-Streaming is a Great Idea (Score:3, Informative)
That's all well and good, but their entire library is not available online. I was recently watching a documentary series, "The Vice Guide to Travel", which I rather enjoyed. I was about halfway through the Poland episode and decided to watch the rest later. The following day when I logged into my account, I was informed that the series is now only available through the disc-by-mail service. Until their streaming library is more consistent and robust (I've already watched most of the interesting looking (to me) movies/docs in my first month of service), I won't be taking Netflix too seriously.
Re:Unfortunate (Score:4, Informative)
And that's why the popcorn and drinks are so damned expensive - because Hollywood gets practically ALL the money from the ticket sales.
The worst mistake to make now (Score:5, Informative)
is to lose confidence in Netflix. They have a business model that should be how content is distributed by the cable companies. Everything on demand, cheap subscription rates, and access to older archives of content that would otherwise not be available except to purchase physical media, which consumers seem to be shunning.
The problem is that while the big cable companies are still struggling to maintain a greedy monopoly on TV content distribution, companies like Netflix are the necessary upset required to get these big companies making better decisions and offering better services. When Netflix was consuming the largest amount of Internet bandwidth, you know the big Telco companies started paying attention. A few decisions in the right direction and Netflix could replace cable services completely.
I do fear, however, that eventually Netflix may become extinct once big Telco gets into the game of offering similar services, but for now Netflix is the black sheep of content distribution and should be supported rather then complained about. For $7.99/mth I am accessing television and movies I have not seen before and no other service (cable, iTunes, movie rental stores) can offer me that value.
Its easy for people to b*tch about how poorly Netflix may have been operating their business, but in the end these same people will b*tch louder when Netflix shuts its doors for good.
Re:convenience over quality (Score:3, Informative)
Hulu far lower range of choices (Score:4, Informative)
Hulu has only a tiny fraction of the programming Netflix streaming does, let alone discs...
Yes it can get you current TV. Which I can get for free with a DVR.
Netflix streaming movie selections are pretty limited - but stream TV has a lot wider scope, and is well worth the VERY LOW price Netflix is currently charging (yes it's still really low even after the increase).
I disagree, because he DID change course. (Score:4, Informative)
Until then, Netflix is a sinking Titanic with an irresponsible madman at the helm, refusing to change course.
Possibly he should forgo some compensation. But your statement is simply wrong.
The thing is, he DID change course. Qwickster is gone. Yes it was a stupid idea but how many CEO's back down from stupid ideas once they are released to the public? If nothing else he deserves some credit simply because he was able to put ego aside and do the smart thing.
Fundamentally with Qwickster gone he has done nothing else wrong. The price increases were mandatory because of content providers forcing Netflix to pay more, it's just that simple.
I also think it was a good idea to split out charges for streaming/discs. If people want just one or the other, the service is cheaper than it was. I, as a consumer, prefer that choice unbundled (even though I'm currently buying both).
So basically everyone's beef is with a choice that is not even relevant any more. Give the guy some slack, he is caught between some VERY cheap customers used to getting product for free, and content providers who want to charge an arm and a leg.