Netflix Continues to Receive Market Beat Down

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I think Reed Hastings' next apology letter better be to his shareholders. Good job on tanking your stock by more than fifty percent in just two months.

Shares of Netflix continued to slide a day after the company was widely criticized for deciding to split itself into two services. In morning trading today, Netflix shares were down $12 or 8 percent to $131. The stock was setting new 52-week low seemingly with each tick of the clock. No, this is nowhere near the plunge the company the day after it announced it had erred in predicting how many subscribers would drop the service as a result of doing away with a hybrid subscription plan.
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I still think Netflix is totally fair in its pricing structure, even with the new tiers. Curious case of how announcements can go horribly wrong.
 
So what's next? Outsourcing the DVD mailing to India? :eek:

Oh crap! I just gave them an idea... Sorry everyone... :(
 
Cali3350 said:
I still think Netflix is totally fair in its pricing structure, even with the new tiers. Curious case of how announcements can go horribly wrong.
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I agree, I think the price is well worth the service. I dont think its as much as what they are doing, but how they are doing it and how they are relating to their customers.

Splitting off netflix into CD and streaming divisions makes sense. Changing names and spinning it off completely with a new retarded name, and separate management portals for customers is a bad idea.

The impression I get from their CEO's communications is that they haven't really thought things through very well.
 
Cali3350 said:
I still think Netflix is totally fair in its pricing structure, even with the new tiers. Curious case of how announcements can go horribly wrong.
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That's just it, NO ONE likes an announcement where the price goes up 60% but you get NOTHING in return except hassles. Hey...we are jacking up our prices...AND....you are going to get two bills, two queue, two sites....

...how they ever thought that was going to go over well is beyond me.



(They could have DROPPED the price of both services to $4.99 each and offered MORE content / incentives / features and avoided this whole mess and still made MORE money. Then, they could have raised prices AFTER the initial shock of the split and took a much smaller hit. Just sayin' )
 
they COULD have dropped it to $4.99 easily... but how would Mr. Hastings afford his luxury yacht? After all, almost everyone knows about his company name now, so he MUST be in the same ballpark as Facebook and Apple!

That's where the problem clearly lies from my point of view.... Greed. When you care more about money, than the people....the people will speak their voice.

Netflix is down over 5% alone, just today, and markets are only open for not even 2 hours so far....ahahaha, what a fool.
 
Steve said:
That's just it, NO ONE likes an announcement where the price goes up 60% but you get NOTHING in return except hassles. Hey...we are jacking up our prices...AND....you are going to get two bills, two queue, two sites....

...how they ever thought that was going to go over well is beyond me.



(They could have DROPPED the price of both services to $4.99 each and offered MORE content / incentives / features and avoided this whole mess and still made MORE money. Then, they could have raised prices AFTER the initial shock of the split and took a much smaller hit. Just sayin' )
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There prices went up 60% to get more content. The argument that you get nothing in return is absurd. Yes, you arent getting anything technically new with the service, but you are getting continually more streaming options in both movies and tv shows, which sounds like a upgrade to me.
 
hmm... i wonder.. who's dumber... Netflix's CEO or HP's CEO.... i'm honestly can't decide...
 
It USED to be worth it. Now we are expected to pay more for less.

28 day delays... Losing streaming content... Now whole-sale plan changes...

They got into bed with the devil, and now everyone is feeling it. They brought this upon themselves, and I feel no pity for them.

And lets not forget. The ISP's aren't done fracking with this streaming situation either.

Monkey God said:
I agree, I think the price is well worth the service. I dont think its as much as what they are doing, but how they are doing it and how they are relating to their customers.

Splitting off netflix into CD and streaming divisions makes sense. Changing names and spinning it off completely with a new retarded name, and separate management portals for customers is a bad idea.

The impression I get from their CEO's communications is that they haven't really thought things through very well.
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Cali3350 said:
I still think Netflix is totally fair in its pricing structure, even with the new tiers. Curious case of how announcements can go horribly wrong.
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Compared to the offer Blockbuster left in my mail, no it's not.
 
Netflix should keep running and not close down like an emo despite stocks
 
Cali3350 said:
There prices went up 60% to get more content. The argument that you get nothing in return is absurd. Yes, you arent getting anything technically new with the service, but you are getting continually more streaming options in both movies and tv shows, which sounds like a upgrade to me.
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If customers are lucky, it will get content back up to where it was. I would not expect more.
 
hesho said:
hmm... i wonder.. who's dumber... Netflix's CEO or HP's CEO.... i'm honestly can't decide...
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People that are freaking out over this and blowing it out of proportion. They had to adjust their model to get more content and provide a better service. It is STILL a great deal. People need to grow up.
 
Cali3350 said:
There prices went up 60% to get more content. The argument that you get nothing in return is absurd. Yes, you arent getting anything technically new with the service, but you are getting continually more streaming options in both movies and tv shows, which sounds like a upgrade to me.
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I highlighted the part of your quote that I think is key. The extra money is only for more streaming content, but what about the rest of us who got Netflix for the disc rentals and only care for the disc rentals? We're not getting any new content, in fact, we now have to wait longer for new releases. To top it off, slowly but surely older movies are dissapearing from Netflix's stock and they're not being replaced. I understand over time discs get damaged, but it seems like nobody is bothering to replace them once they're gone. There were some movies which I previously rented on Netflix that I wanted to rent again to show to friends and now they're no longer available.
 
SXO said:
I highlighted the part of your quote that I think is key. The extra money is only for more streaming content, but what about the rest of us who got Netflix for the disc rentals and only care for the disc rentals? We're not getting any new content, in fact, we now have to wait longer for new releases. To top it off, slowly but surely older movies are dissapearing from Netflix's stock and they're not being replaced. I understand over time discs get damaged, but it seems like nobody is bothering to replace them once they're gone. There were some movies which I previously rented on Netflix that I wanted to rent again to show to friends and now they're no longer available.
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x2. Granted, the disc only service went down in price from what it would have been with streaming.

But one of my biggest problems with netflix in the last few months has been that they've taken off old movies. For instance, Diary of a Country Priest is no longer available, yet I had rented it just last year. In fact, there are several movies which can now only be "saved."
 
Netflix had no choice.

The DVD mailing business was going to crater the company eventually. With postage rates are going up significantly, along with an end to Saturday delivery an inevitable rate hike on the mail plans is coming. Red Box is eating their casual mail plans (the profitable ones - the five disc at once plans don't make Netflix money). Splitting the company and renaming it in the same quarter (get all the bad news out at once) is good business strategy.

In short, the mail-out DVD business is doomed to fail, why let it hang around an infect the brand you believe has great value?

This move will simplify content contracts, and should result in more streaming content for Netflix. This price hikes are were inevitable, no one likes paying more for what they were receiving for free (essentially), but the free ride can't last forever.
 
Dekoth-E- said:
They had to adjust their model to get more content and provide a better service.
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It seems more like they had to increase their pricing model to get the same content they always had (or less) and will be providing worse service with the splitting of their services.

I'm sure it was their intention to provide more content, but that remains to be seen. Honestly, ever since the price I hike, I have been hoping they start sending weekly or monthly emails notifying us of new titles or new deals they might have made with the studios. Just as a way to say "Hey! We're doing actually stuff with that money you gave us! COOL, HUH?!"
 
I just realized something. All of this is happening at the same time the post office is considering (and most likely will) cease Saturday Service.

Hmmm.... I wonder if NetFlix influenced the Post Offices decision, or if the Post Office influenced NetFlix's decision?
 
Dylan80 said:
they COULD have dropped it to $4.99 easily... but how would Mr. Hastings afford his luxury yacht? After all, almost everyone knows about his company name now, so he MUST be in the same ballpark as Facebook and Apple!

That's where the problem clearly lies from my point of view.... Greed. When you care more about money, than the people....the people will speak their voice.

Netflix is down over 5% alone, just today, and markets are only open for not even 2 hours so far....ahahaha, what a fool.
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Question, when you negotiated your salary did you take the lowest bid or were you greedy and want as much as you could get?

I think Netflix will weather this storm and in 6 months will be as big and strong as ever and all the drama queens will move on to the next "cause."

As for splitting the streaming/dvd services, it comes with many shortcomings so I have to assume that it makes sense from a business prospective. Without knowing the details benifits the main benifit I see would be that it would seperate the revenue streams from each service type which as a publically traded company are public knowledge.

For example let's say they make $20 million a month and that profit is split evenly between streaming and dvd delivery. Well as things sit now when negotiating for new streaming rights they're profit is $20 million a month, but once the split it's $10 million a month for each. This could be hugely important when new contracts are negotiated.

Also it could be something as simple as them seeing the end of dvd delivery coming and making the decision to take the hit now to avoid having it's ultimate failure pull the company down at a random time in the future.
 
It is still a good deal, but the way they went about it is the problem. 60% price increase at a single time is absurd, people will freak out with that. Their online content had been increasing, but only in quantity not in quality, lot of horrible movies but not entirely their fault. Movie companies wont give them first run films for a reasonable price or at all I would guess. I personally dropped the streaming for the price I was paying it was justifiable to watch only a few things a month, now not so much.

@hesho HP CEO gets my vote. Netflix moved to make the company profitable, HP tried to get rid of what made HP.
 
It's just about time to buy up some Netflix stock. Once the initial shock has worn off, it will go back up. The fact of the matter is, if you want streaming content, they're still the only game in town. There are other providers out there, but their content is even more lacking than Netflix.
 
This is as dumb as FedEx Kinko's changing their name for nine million to FedEx Office, and then recently deciding that actually hurt the company, so now they are paying again, to change it back. I can see the same thing happening here "who the f%&k is Quickster?", they should have just expanded the existing product, not make it into a separate unknown entity.
 
Cali3350 said:
I still think Netflix is totally fair in its pricing structure, even with the new tiers. Curious case of how announcements can go horribly wrong.
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same here. I find the backlash pretty surprising, honestly.... but I have a feeling that it's only temporary. Hopefully it means better/more content for users in the near future to draw more customers in
 
I loved netflix services, I would gladly pay 60+% more and I WAS GETTING 60+% MORE! Or maybe even 40% more, but 0%, maybe even a bit of a negative number as they lost STARZ.. Yeah, thats a sinking ship I dont plan on staying on..

And im not switching to a streaming competitor just because Netflix is retarded

Firing back up ye old movie server..
 
dr.stevil said:
same here. I find the backlash pretty surprising, honestly.... but I have a feeling that it's only temporary. Hopefully it means better/more content for users in the near future to draw more customers in
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The backlash is because "it changed". I didn't see a price hike... I pay less now. We rarely used the 1 DVD we would have laying around so moving to the streaming only made sense. When Netflix started, broadband wasn't everywhere it is now and the idea of getting your movies in the mail was a great idea. My boss is like customer #5 (very early adopter) loved it because they live out on an old farmhouse in the middle of nowhere and having DVDs delivered to the house was perfect.

Now with broadband and RedBox everwhere, the companies DVD model just doesn't add up financially. So far, I've found the streaming content pretty good - more than enough stuff to watch. If we want "a new release now", I reserve it at RedBox and pick it up on the way home from work.

Yup, times they are a changing. It happens. I remember the local video store / rental place. You had to buy a $50 a year (or more) membership, rentals were $5.00 to $10.00 a night, and there was a $3.0 charge if you didn't rewind. Then with DVDs, there was still late charges and what not. Netflix changed all that with no late fees. The number of DVDs they have been mailing out has been dropping and their streaming service has picked up. Interesting how they are working out the change and stay a functional company.
 
Cali3350 said:
There prices went up 60% to get more content. The argument that you get nothing in return is absurd. Yes, you arent getting anything technically new with the service, but you are getting continually more streaming options in both movies and tv shows, which sounds like a upgrade to me.
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What new content are you referring to?
 
Their streaming service is ok. Just a few nights ago, my wife and I got the DVD, "How to Train your Dragon". The DVD was horribly scratched so we couldn't watch via that medium. "No problem! Netflix is a streaming service!" I thought... and off to the website I go.

Oh, HTYD is only available via DVD....

yeah, great streaming service... Don't get me wrong, it does have it's values, but they are far from being full streaming company when they aren't even streaming movies as new as Dragon. :(
 
FYI to you folks into streaming movies:

Usenet accounts usually only run about $10 to $15 a month for unlimited DL.


:p
 
Mathemabeat said:
FYI to you folks into streaming movies:

Usenet accounts usually only run about $10 to $15 a month for unlimited DL.


:p
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Usenet doesnt work on my phone and xbox either. I also cant log into my parents computer and start watching something.
 
Outamyhead said:
Compared to the offer Blockbuster left in my mail, no it's not.
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Best deal was Blockbuster with the unlimited in-store exchange for $18 My record was 43 DVD's one month :)

Of course that might partially explain why the 4 Blockbusters between my work and home went out of business :(
 
Mathemabeat said:
FYI to you folks into streaming movies:

Usenet accounts usually only run about $10 to $15 a month for unlimited DL.


:p
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for that matter, why bother paying for usenet when I can borrow movies from friends/family and rip them? ;)

I pay for netflix for the convenience. I can watch any movie availible from anywhere at any time on just about any device I own (phone/ipad/laptop/desktop/ps3/xbox/etc). No need to download, store, transcode or any other BS. Neither usenet, bit-torrent nor renting/borrowing gives me that flexibility.
 
dr.stevil said:
for that matter, why bother paying for usenet when I can borrow movies from friends/family and rip them? ;)

I pay for netflix for the convenience. I can watch any movie availible from anywhere at any time on just about any device I own (phone/ipad/laptop/desktop/ps3/xbox/etc). No need to download, store, transcode or any other BS. Neither usenet, bit-torrent nor renting/borrowing gives me that flexibility.
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Which just goes to show that with the right price point and service, they can compete with pirates.

Just like when Apple came out with iTunes, and their $.99 music tracks, they put a dent in music file sharing.

I still think they would do more to combat piracy, if they fired most the lawyers, stopped suing kids, and just lowered the prices.
 
Cali3350 said:
I still think Netflix is totally fair in its pricing structure, even with the new tiers. Curious case of how announcements can go horribly wrong.
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That all depends on how you look at it. If you watch a lot of videos and movies a month, then $15 is totally worth it. If you watch a couple of movies a month, then this price does seem ridiculous. More so if there's stuff you wanna watch, and Netflix doesn't have it yet. More so, if you have a friend who's been downloading movies in HD, from bit torrent.

When it was $8, it made a lot of sense. People canceled their cable subscriptions, and cranked up their Netflix. At $15, well my local cable company and FIOS offer back channels for that price, and do offer streaming videos. Optimum here in Jersey offers streaming HBO videos to devices in the household.

If you go the legal route, cable companies are starting to compete nicely with Netflix. Go the illegal route, and bit torrent will always have that episode of whatever TV show you wanted to watch from yesterday. So it's not fitting in nicely with the other alternatives.

BTW, what the sudden huge price increase? It nearly doubled in price. I know cable companies wanted them to charge $30 a month, so they would be on equal footing. Netflix was awesome when it lasted, but I'm hoping Google comes out with something awesome.
 
Their streaming just isn't good enough to stand on its own, there is way to limited selection. DVD and streaming was good but each alone isn't and would much rather just redbox. Also the fact that they are splitting the 2 services into different companies is just plain stupid, so now i get 2 bills instead of 1? now when you don't have it streaming i have to go to a whole other site and then add the queue there rather then just click a button? A minor price hike would have been ok, but a major price hike followed by splitting the services and splitting the company is just dumb. The company could have just upped the price by like 2$ and put in another record breaking year for profits, but instead they now looking a huge losses and huge tanking of their stock.
 
Cali3350 said:
There prices went up 60% to get more content. The argument that you get nothing in return is absurd. Yes, you arent getting anything technically new with the service, but you are getting continually more streaming options in both movies and tv shows, which sounds like a upgrade to me.
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Actually they aren't getting more "Content". And Stars has decided to leave their party as well. So in the future they'll have even less "Content". Which bodes ill for their customer satisfaction.

I personally wouldn't be so unhappy if their streaming service was improving. But for some strange reason its not, at least not for me. So with the prospect of less content and the same dismal service, I'm left wondering why I should stay subscribed.
 
Google has Youtube which offers major movies, Amazon has full streaming with Prime.

Saturday Netflix... the only time they were really efficient on Fridays so discs would come Saturday was from Fargo to southern MN. Don't know why. Otherwise sending something Wed/Thur could mean Monday anyway, which sucks.
 
Cali3350 said:
I still think Netflix is totally fair in its pricing structure, even with the new tiers. Curious case of how announcements can go horribly wrong.
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Not really.

He explanied things AFTER the fact, which made it even worse.

Basically he said, "sorry for the 60% increase. I know we've screwed you,
sorry for that, but to bad now".

Corporate image for good PR always trumps raising prices without
an explanation that cuts mustard. Its just to little, to late.
 
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