Don't Call Netflix's CEO 'Greed' Hastings Just Yet

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Hahahaha, "Greed Hastings," that is definitely a frontrunner for headline of the day.

On Twitter and Facebook, there was much lament and gnashing of teeth. Thousands of customers threatened to cancel their subscriptions, and Netflix for the first time in a long while wasn't being applauded by customers. We might find some clues about what led the company to raise prices this afternoon, when the company reports second-quarter earnings.
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I have knowledge from an inside source :cool:that they really had their last big technology push fail due to the fact that spec'd green hard drives for their 2010 Q4 - 2011 Q1 server deployment. The problem is that when all the drives begin spinning after high data access the resonance and vibration were shaking the servers apart literally. Motherboards and components primarily backpanes were failing at an alarming rate. The failures were so bad that they had to delay the availability of streaming content to customers and replace all the faulty equipment. The losses that resulted from this SNAFU due to data loss, an increase in actual power utilization (since they would not be able to run the green drives) and the replacement of all faulty hardware have been passed down to us the customer... :eek:
 
Or because the current movie streaming competition has caused prices to inflate by 8 times as much as what it used to be.
 
Second quarter earnings?

Heck, third quarter earnings will reflect a lot more
of our distain.
 
oh noes, 8 dollars a month more!!!!!

I am pretty much done caring about this, it's 8 bucks, it's still exponentially better cheaper and more convenient than piling in the car and making a trip to blockbusters every week.

People are being ridiculous about this whole thing.
 
really green hard drives in servers...wowz, but I bet the licensing costs are going to be the primary driver.
 
We dropped their disc to home delivery service, mainly because we were tired of getting scratched/damaged movies and not being able to watch them fully. We have at least 8 redbox and blockbuster DVD distribution automated hubs within a 5 minute drive so I can still get recent movies if needed. With free coupons for redbox all over the web or the whopping $1 price tag, its a better option anyways.

I have notcied Netflix has been down or very slow recently.
 
EBruddah said:
I have knowledge from an inside source
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I have a hard time believing that in entirety. In a large datacenter environment like that, the drives should be housed in a SAN enclosure designed to handle vibration and only attached to the actual server hardware via Fibre Channel/etc. I don't see how it would be killing server hardware, unless you are just referring to the SAN controllers.

Even if everything was housed in mixed racks, testing would have been done before it was fully implemented. It's possible that these were found during testing, and the project was subsequently scrapped, though.
 
Or it could be how when a lot of their pre-negotiated contracts expire, they are going to get raped on renewal costs by studios. The Starz contract is also expiring soon, which gave them most of their GOOD content and they got on the cheap.
 
staknhalo said:
Or it could be how when a lot of their pre-negotiated contracts expire, they are going to get raped on renewal costs by studios. The Starz contract is also expiring soon, which gave them most of their GOOD content and they got on the cheap.
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This. The studios are asking somewhere in the neighborhood of 10 x or more of the amount originally paid for contractual renewals in 2009.
 
joblo37pam said:
I have a hard time believing that in entirety. In a large datacenter environment like that, the drives should be housed in a SAN enclosure designed to handle vibration and only attached to the actual server hardware via Fibre Channel/etc. I don't see how it would be killing server hardware, unless you are just referring to the SAN controllers.

Even if everything was housed in mixed racks, testing would have been done before it was fully implemented. It's possible that these were found during testing, and the project was subsequently scrapped, though.
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You make perfect sense...

The deficiencies were found during mid-deployment when they started going high density with the new hardware. Now they're paying the supplier to replace the drives.
 
stealthy123 said:
oh noes, 8 dollars a month more!!!!!

I am pretty much done caring about this, it's 8 bucks, it's still exponentially better cheaper and more convenient than piling in the car and making a trip to blockbusters every week.

People are being ridiculous about this whole thing.
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I agree completely, it's amazing how easily people get all butt hurt over the smallest issue.

As things have been the combined Netflix plan has been an amazing deal so basically the new price is what it could have been since it was created so if you've been enjoying the deal consider yourself luck but either way move on with your life, with our without netflix.
 
staknhalo said:
Or it could be how when a lot of their pre-negotiated contracts expire, they are going to get raped on renewal costs by studios. The Starz contract is also expiring soon, which gave them most of their GOOD content and they got on the cheap.
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Yup, it's all the studios' fault. They wrote contracts back in '09 that they could clearly live with (their lawyers wouldn't have written them otherwise), but now they see the gravy train rolling into the station and are getting their super-sized ladle ready. What the studios have shown time and time again is that they vastly overvalue their own product, price/demand curves be damned (there's a near infinite supply of 1's and 0's). The studios think they shit diamonds and piss gold. So they're going to kill the biggest legal digital distribution channel around.
 
I found this to be the most interesting of the article:

The company said in its announcement that it hadn't anticipated the continued demand for DVDs and that it didn't make financial sense for Netflix to continue offering discs in addition to streaming access for $10 per month.
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I would be more than happy to drop the DVD plan (actually, I already did), and even pay the $15-$20 a month, to have their entire catalog available via streaming. I don't want to put their filthy discs into my blu-ray player. I don't want to watch 3/4 of a movie and find out the disc has a errors my player can't correct... I want to click a button, watch the movie.

Until then, they should consider how greedy a 60% price hike looks when you're not adding any incentives at all.
 
i'll be switching to redbox since it's actually the same price or cheaper. at an average of 4days turn around for a disc and no sunday deliveries i'd probably be able to get only 8 movies a month if i send it back the next day. since i go area's with red box's just about every day it's not really a hassle to pick up a movie there.
 
I am just dropping the streaming service. Really don't use it that much. It is nice to have available. Not worth fretting about it. If enough of us just drop the service, they will get the message.
 
I've been subbed with Netflix for a while now, but that's about to change. My reasons are simple... Not enough content! In the past I overlooked this because there was enough streaming content to fill in the gaps. But lately Netflix streaming service really hasn't been that good. So until they get this sorted out I'm going to switch to something else.

I'm still going to refer to Netflix CEO as "Greed" Hastings though... It just has a ring to it that I find appropriate. ;)
 
the hard bit right now is their online content choices sucks just enough that you still have to get discs if you want to see most of what you want.
 
stealthy123 said:
oh noes, 8 dollars a month more!!!!!

I am pretty much done caring about this, it's 8 bucks, it's still exponentially better cheaper and more convenient than piling in the car and making a trip to blockbusters every week.

People are being ridiculous about this whole thing.
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True, but where is your lmit?

10, 20, 30 bucks?

Just curious.
 
Kueller said:
Yup, it's all the studios' fault. They wrote contracts back in '09 that they could clearly live with (their lawyers wouldn't have written them otherwise), but now they see the gravy train rolling into the station and are getting their super-sized ladle ready. What the studios have shown time and time again is that they vastly overvalue their own product, price/demand curves be damned (there's a near infinite supply of 1's and 0's). The studios think they shit diamonds and piss gold. So they're going to kill the biggest legal digital distribution channel around.
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And next they will be wondering why there's been an increase in piracy.....

The real solution to reducing piracy is to make the product so cheap and easy to access, that most people find it easier to just buy the product. Look at the original sucess of iTunes with the $.99 music tracks.

In the case of movies, the Netflix steaming plan would be great, IF they had everything available for streaming. The reason I (and alot of other people) kept renting DVD's along with the streaming, is that there is still too much that is only available on DVD.

Meanwhile, the studios delay the release of DVD movies to Netflix, and delay the streaming rights even more, while at the same time raising prices. The exact opposite of what they need to be doing.
 
My problem is that the content of the streaming stuff isn't what I want... I want all the good stuff, not the B movies and 10+ year old crap that I've already seen.
 
EBruddah said:
I have knowledge from an inside source :cool:that they really had their last big technology push fail due to the fact that spec'd green hard drives for their 2010 Q4 - 2011 Q1 server deployment. The problem is that when all the drives begin spinning after high data access the resonance and vibration were shaking the servers apart literally. Motherboards and components primarily backpanes were failing at an alarming rate. The failures were so bad that they had to delay the availability of streaming content to customers and replace all the faulty equipment. The losses that resulted from this SNAFU due to data loss, an increase in actual power utilization (since they would not be able to run the green drives) and the replacement of all faulty hardware have been passed down to us the customer... :eek:
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Doesn't Netflix use EC2? :confused:
 
EBruddah said:
I have knowledge from an inside source :cool:that they really had their last big technology push fail due to the fact that spec'd green hard drives for their 2010 Q4 - 2011 Q1 server deployment. The problem is that when all the drives begin spinning after high data access the resonance and vibration were shaking the servers apart literally. Motherboards and components primarily backpanes were failing at an alarming rate. The failures were so bad that they had to delay the availability of streaming content to customers and replace all the faulty equipment. The losses that resulted from this SNAFU due to data loss, an increase in actual power utilization (since they would not be able to run the green drives) and the replacement of all faulty hardware have been passed down to us the customer... :eek:
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This does not make any sense at all. Is you source is a pizza delivery guy who overheard a conversation he didn't understand?
 
The real interesting article is the one on the left side (picture link) where a media traffic analyst, says Netflix WANTS people to be pissed and get rid of the DVD option.

Pissed enough to pirate and force Hollywood to deal reasonably...

http://news.cnet.com/8301-31001_3-2...like-apple-killed-floppies-q-a/?tag=mncol;txt

Makes sense I guess... could easily backfire...


Someone above said they would pay $15-20 for streaming if ALL netflix content was available.... Are you kidding? $20? The best cable/dish TV package is over $100 a month and doesn't even come close to the amount of content Netflix has, let alone no commercials and 100% on-demand.. Cable can't even touch the amount of new releases, even factoring 30 day delays of netflix and you want ALL that for $20? The ONLY place cable/dish can compete with Netflix's catalog is newly aired TV shows, since most of netflix has is DVD release copy/timeframe.

At least be reasonable... kick up your expectation to $60 a month.
 
my step mom bitched about this, but then I said it still costs less than your sirius radio that you never even fucking use
 
dandirk said:
The real interesting article is the one on the left side (picture link) where a media traffic analyst, says Netflix WANTS people to be pissed and get rid of the DVD option.

Pissed enough to pirate and force Hollywood to deal reasonably...

http://news.cnet.com/8301-31001_3-2...like-apple-killed-floppies-q-a/?tag=mncol;txt

Makes sense I guess... could easily backfire...


Someone above said they would pay $15-20 for streaming if ALL netflix content was available.... Are you kidding? $20? The best cable/dish TV package is over $100 a month and doesn't even come close to the amount of content Netflix has, let alone no commercials and 100% on-demand.. Cable can't even touch the amount of new releases, even factoring 30 day delays of netflix and you want ALL that for $20? The ONLY place cable/dish can compete with Netflix's catalog is newly aired TV shows, since most of netflix has is DVD release copy/timeframe.

At least be reasonable... kick up your expectation to $60 a month.
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Doesn't mean cable is all that great either though, that $100 bucks a month is ridiculous imo ;)
 
dandirk said:
The real interesting article is the one on the left side (picture link) where a media traffic analyst, says Netflix WANTS people to be pissed and get rid of the DVD option.

Pissed enough to pirate and force Hollywood to deal reasonably...

http://news.cnet.com/8301-31001_3-2...like-apple-killed-floppies-q-a/?tag=mncol;txt

Makes sense I guess... could easily backfire...


Someone above said they would pay $15-20 for streaming if ALL netflix content was available.... Are you kidding? $20? The best cable/dish TV package is over $100 a month and doesn't even come close to the amount of content Netflix has, let alone no commercials and 100% on-demand.. Cable can't even touch the amount of new releases, even factoring 30 day delays of netflix and you want ALL that for $20? The ONLY place cable/dish can compete with Netflix's catalog is newly aired TV shows, since most of netflix has is DVD release copy/timeframe.

At least be reasonable... kick up your expectation to $60 a month.
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That's like debating what form of cancer is better.
 
I think Netflix is a fantastic deal. I have Hulu Plus, Amazon Prime, and Netflix. Guess which one gets used 99% of the time. I think thier streaming selection is pretty extensive for the price I pay for it. Movie rentals use to be ridiculus. I remember a time when I had to ban my wife from going to them because of the late fees she would accrue.
 
dandirk said:
The real interesting article is the one on the left side (picture link) where a media traffic analyst, says Netflix WANTS people to be pissed and get rid of the DVD option.
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Funny, I got pissed and canceled streaming, not DVD/bluray.
 
stealthy123 said:
oh noes, 8 dollars a month more!!!!!

I am pretty much done caring about this, it's 8 bucks, it's still exponentially better cheaper and more convenient than piling in the car and making a trip to blockbusters every week.

People are being ridiculous about this whole thing.
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My take exactly.

It blows me away how people cry and whine about insignificant things like a price hike on this cheap, cheap service while not stop to think a minute about the taxes that government takes from them and how federal reserve policy will render the dollar worthless very soon.
 
Dr. Righteous said:
My take exactly.

It blows me away how people cry and whine about insignificant things like a price hike on this cheap, cheap service while not stop to think a minute about the taxes that government takes from them and how federal reserve policy will render the dollar worthless very soon.
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You wouldn't mind paying the extra $8 for me?
 
DarkStar_WNY said:
I agree completely, it's amazing how easily people get all butt hurt over the smallest issue.
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Some people just don't like getting screwed in the ass as much as others.

Seems like you're stuck in the land of what suite's me must suite everyone and therefor good for all because your way is the only way. No!

Things add up and we base our purchasing decisions based on necessities and luxuries. What fits you may not fit someone else. Not hard to figure out. Oh and some people care about saving money whenever and wherever possible.
 
stealthy123 said:
if 8 bucks a month makes or breaks your budget you don't need netflix anyways.
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I think it's whether you think it's worth the price rather than if you can afford it. I never buy anything unless I think it's worth it. I don't think the streaming service is worth it and I rarely use it. Nonetheless, it was an enormous price increase percentage wise.
 
If they want to charge 8$ more then fine. But I want a much bigger streaming library to choose from. Right now they don't really have a lot of new releases.
 
The new price scheme actually made it much cheaper for me than previously, as I cancelled streaming. The streaming selection is really poor for a real movie buff after a while, so is the video quality for my connection and the fact that my Internet is barely usable while streaming, but mostly, I prefer watching movies at my leisure, and not in a TV-like fashion, being stuck in front of a TV or computer for 90 minutes.

Even with the pause/resume features, I found out that I used Netflix streaming less and less. And the DVD/BD mail cycle is amazingly fast here, 2 days at most, next day if you manage to watch or rip and return the movie between the noon mail delivery and the 4PM pick-up.
 
I'm canceling. I hardly ever use it. The old price was low enough I was just too lazy to cancel. So part of it's the hike itself, and part of it is this being in the news reminded me I probably should. Made me actually think about it.

The streaming collection is weak, and I've got quite a few bad disks with hairline cracks. Unplayable or skips. Skips are almost worse, you spend an hour watching a movie and then it's a mess. While everyone is entitled to an opinion, I would imagine Netflix being BETTER than a expensive cable plan is well, the opposite of how I feel. The bill sucks, but the idea of Dexter being on and not able to watch it, or the Patriots playing, or MMA on, and not being able to watch, not gonna happen. I can live without Netflix though, easily.
 
also cancelling disc, will keep streaming for a bit longer since they got large chunks of the viz and funimation catalogs....

I was debating this for a while anyway, they simply are not buying many new titles (especially in anime) that i have been wanting to see. on top of that while I find the anime and documentaries on streaming good, there are few movies that are worth a damn or that i haven't owned for ages on dvd.

once i exhaust the streaming anime, i'm probably out for good.
 
pgwalsh said:
Some people just don't like getting screwed in the ass as much as others.

Seems like you're stuck in the land of what suite's me must suite everyone and therefor good for all because your way is the only way. No!

Things add up and we base our purchasing decisions based on necessities and luxuries. What fits you may not fit someone else. Not hard to figure out. Oh and some people care about saving money whenever and wherever possible.
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Yeah, but some love to troll more than others. Whatever SUITS you... Tell me, how much you you drop each month on fast food or coffee shops or whatever your personal luxuries are? Drop a Big Mac meal once a month, and gee, problem solved!

They are running a FUCKING BUSINESS. Businesses take this little thing called MONEY to expand. When people start bitching for more content, Netflix has to go ask the greedy-ass studios for more content. Of course, their answer will be "show me the money!", what else has it ever been? Conservative estimates place the costs for Netflix at over a Billion (with a B, kiddies) per year to get all the major studios on Board. Where the hell do you expect them to come up with that kind of cash? It's not like they're the US Government and can print their own!

Simple math: $1,000,000,000 divided by 20,000,000 subscribers = $50 per year per subscriber to expand their offerings, or roughly $4.17 per month. Now take into account all those that will drop streaming or cancel their accounts entirely, and the increase makes perfect sense from a business standpoint...

But hey, if you don't like the streaming, or can't use it (like some of my friends who have no access to DSL/Cable internet), drop that and save a few bucks. Or drop the DVD part if you're so in love with streaming, and use the savings to hit a Redbox when you really need to see something new - your decision is really about whatever SUITS you, not what SUITS me best...
 
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