Netflix to eliminate mail-order service?
Filed under: Technology
Call me traditional, but I like flipping through pages to get to the climax of my novels. I enjoy reading the newspaper in the morning while sipping on tea and eating Belgian waffles. And I definitely cannot get enough of watching movies on my 42-inch-screen television, curled under a blanket with a bowl of buttered popcorn in hand. After working all day on the computer, I want to pop in a DVD and have a little romantic-comedy time.
But Netflix -- my beloved movie-rental service -- might not think that's a profitable idea anymore.
Recently, CNBC.com reported that Netflix is planning to do away with its overnight mail-order service, possibly only offering Internet-streaming movies and shows for a monthly fee of $9.99. But company spokesman Steve Swasey says, "It's all speculative at this point. Netflix is always testing and researching and investigating ways to improve its service for members."
Netflix has been trying out Internet-streaming service with its "Play" option for selected films in a member's queue, and I'm going to confess: I have used that option on multiple occasions when my desire for instant gratification kicked into high gear. However, waiting for movies to finish buffering and for the picture to stop scrambling is not my idea of relaxation. And I'm sure I won't find many movie-buffs who'd rather watch their anticipated releases on a 15-inch computer screen than a 30-inch flat-screen TV.
Yes, I know; "for only $99.99" I could purchase Roku, a digital video player that streams movies from Netflix over the Internet to my television. Also, I could buy an Xbox 360 for $200 and stream the films over Xbox Live. But I don't have extra cash laying around, and besides, why do I have to buy new technology to use the Netflix service? There are obvious reasons why I am a faithful Netflix subscriber: plentiful movie selection, speedy delivery -- but mainly, a super cheap monthly subscription fee!
A techie friend of mine tried to explain to me a way to save money and watch online videos on my television. If I were to connect my laptop's display output to the TV, the television would duplicate what is shown on my monitor. However, when he asked me what type of graphics card and cable I have, and spouted words such as VGA, S-Cable and HDMI, I began praying that Netflix wouldn't end its mail-order service.
After all, even if I did hook everything up, there's a high probability that my movie would stop to buffer after every three minutes or the picture would freeze and only words would be heard, as I've experienced previously.
According to Swasey, however, there have been no complaints. Videos start in less than 30 seconds, and unless one has a DSL or dial-up Internet connection (or one constantly rewinds and fast-forwards), there should be no dissatisfaction with the picture quality and the time it takes for the videos to buffer. Well, I have a cable modem and a high-speed Internet connection, and I often choose not to use the "Play" option in my queue for the fact that I haven't yet viewed a film that didn't frustrate me with the problems mentioned above.
But that's beside the point. If implemented, the Internet-streaming-only service will essentially only benefit Netflix. The company will save on shipping costs, grow its partnerships with companies that will offer products-for-purchase to help watch online videos via TV, while consumers will have to scramble to find money for new technology that will help them use the service problem-free. What if one can't afford to purchase Roku or switch Internet providers? What if we're exhausted from keeping up with technological advancements and just desire a morsel of the familiar? Good bye paperbacks, hello e-books. Farewell newspapers, welcome blogs. Adios movie-rental services, Internet-streaming is the way of the future.
Reader Comments (Page 1 of 1)
2-25-2009 @ 7:21PM
alex said...
Has he not seen the blockbuster commercials. They offer the exact same thing as netflix, only better. Blockbuster is definately way better than Netflix cuz you can take envelopes to blockbuster stores and exchange them for more movies. AND you can watch movies instantly too. Netflix took too long to deliver movies. Sometimes i got them a week later than what it said. EVERYONE SWITCH TO BLOCKBUSTER!!!
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2-26-2009 @ 2:33PM
jeanette c said...
Wrong at one point i had blockbuster and netflix coming about the same 3 movies each. bockbuster lost i could never keep my queue filled because they had nothing. when i order half on blockbuster their was always a long wait so i would erase from blockbuster and order from netflix. so guess what i canceled blockbuster.
2-25-2009 @ 8:25PM
Ceebee said...
I agree with everything the article said. I tried streaming from Netflix. My computer is three years old (yes, an antique!) and I got sound but no video. Did I complain to Netflix? NO! It's not their problem my computer doesn't have enough horses to use their streaming service. Why would I complain? Netflix should survey their users if they are smart.
I would rather watch on my T.V. and not my computer anyway. I also don't have the cash to buy new technology. It will just have to march along without me. As for Blockbuster, if Netflix doesn't want my business any more then I'll be checking them out. Bye-bye Netflix.
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2-25-2009 @ 8:42PM
joshsisk said...
this article is silly. nowhere did Netflix say they are ending normal, in the mail accounts... the original article this links is pure speculation.
most likely, netflix WILL offer a streaming only account... just like they also offer a budget 1 movie at a time account. they have like ten different account options, after all. a streaming account would be perfect to attract new customers who didnt have netflix before but DO have xbox 360s and are interested in the streaming via their Xbox but dont want DVDs in the mail.
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2-26-2009 @ 4:12PM
David said...
I use streaming with a Roku and its great. I would give up the mailed DVDs if Netflix made the latest movies available on-line but at the moment the selection for streaming is limited.
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2-26-2009 @ 4:56PM
Alex said...
They have to make it more appealing to the customer for it to work. The only possible benefits for the customer could be reduced subscription cost and shorter wait to view the movie. The potential nuisances are more numerous: ease of use, reliability, quality, additional cost for equipment for making the service work with a standard (ha, what standard?!) TV, limited content availability, etc. They need to address these issues and make it all work seamlessly before they can make this leap. They can address hardware cost by subsidizing it with a contract.
I don't think that ending their DVD-by-mail service is an option at this point. If anything, they'll just raise the monthly fee.
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2-27-2009 @ 6:33PM
Tim said...
This is the worst idea I have ever heard Netflix! All you care about is saving money for yourself, but making us netflix subscribers suffer with a stupid idea about online-viewing only. What about those who can't stream video online, who still have dial-up like me, and who wants to sit in front of a small computer monitor with friends and family, and watch a movie or tv program? NOBODY! That's who.
The movie experience is meant to be seen on a big screen, especially those who have those new LCD HGTV Hi-Defintion sets. Nobody wants to hook-up some adapter thing from PC to TV to watch a movie. What if a computer is in another room or upstairs. How can you fish a wire from upstairs to downstairs to a tv with some expensive adapter thing, who wants to do that, and spend more money buying the thing. Hell with that! Netflix is best the way it is with the mail-order red envelope business.
If they stop the mail-order business, I will discontinue with their services, and go elsewhere. I mean, half the discs I get anyways don't work, all scatched up, they freeze and all messed up.
NETFLIX, you are a business to please the customer, not please yourself by saving money. Think about that!
Stupid Idea!
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3-17-2009 @ 10:53PM
Netflix PR said...
Hi,
Chris Garrity from Netflix PR here to help set the record straight. Netflix is in no way abandoning the Red Envelope. We are commited to continuing to provide a DVD by mail service.
Thanks for your comments, interest and continued use of the service.
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