netflix fallout

[spederman]

Like we didnt see this coming, stupid asshole, surprised he didnt get fired instead.



NEW YORK (TheWrap.com) - Netflix CEO Reed Hastings is getting the corporate equivalent of coal in his Christmas stocking -- a pay cut.

According to the company's filing with the Securities and Exchange Commission on Thursday, Hastings' salary is taking a $1.5 million hit in 2012.

While his base annual salary of $500,000 remains the same, his stock option compensation drops from $3 million this year to $1.5 million next year.

Based on those two figures, Hastings will make less in 2012 than Chief Content Officer Ted Sarandos and Chief Product Officer Neil Hunt. In 2011, Hastings led the executive pack.

Why the pay cut? One has to assume it is related to the company's turbulent year.

Netflix announced a controversial new pricing plan in July that enraged customers.

Hastings then admitted the company erred in a blog post while announcing a new DVD-by-mail service, Qwikster. How was it different from the original Netflix service? It wasn't really, just a new name.

Netflix then canceled Qwikster and brought all its services back under one roof.

Throw in a few lost deals with the likes of Starz, and it's been a rough few months for the company.

Still, aside from the contracts all of these mishaps came down to one issue. Netflix wanted to shift as many customers to streaming, which costs the company less than shipping physical DVDs. Those that still want the DVDs would have to pay more so Netflix doesn't lose money on the service.

Most analysts seemed to understand the basic need, but it was the company's way of going about the change that was calamitous, as were its attempts at damage control.

But Sarandos told TheWrap earlier this month that the company will bounce back in 2012, and who is to say it won't?

For now, Hastings will have to settle for a couple million in change. Happy holidays indeed.

[LS1Goat]

Has anyone heard if FIOS is throttling Netflix?

I have Charter with just an 18mbit connection but Netflix has been flawless. Netflix has said in the past that Charter is the only ISP that doesn't throttle their service at all.

EDIT: Disregard. Netflix released their monthly ISP report back on the 12th and FIOS was the only service that outranked Charter.

I recognize your edit for this post. I just wanted to re-iterate that FIOS does not do network throttling on Netflix users. Have router logs to substantiate that, as I too was curious about that as well at one point.

Now Netflix does throttle the manner in which they mail/distribute DVD/BD by mail to certain customers. Customers with 2 and 3 discs at a time with quick turn around times on DVD/BDs my mail, will get throttled. Where customers (in scenario) who order two discs at a time, but keeps them for 3 weeks before mailing them back to the hub, will be prioritized differently in their queue management system on getting first available movies et al.

[Foxy90GT]

they need to rotate the shitty stuff out lol but ok that makes more sense i guess

[Geor!]

They're doing away with the Starz thing or whatever, but I don't think that takes effect until next year. They do rotate movies in and out though. I've probably got 50 unavailable in my streaming queue that were at one point.

[Foxy90GT]

Have you guys noticed some movies that were streaming at one point aren't anymore? Looking through the Netflix thread on the television/movie forum i realized zombie land and salt weren't streaming anymore. I'm sure there's more i haven't noticed yet

[CJ]

yeah their movie selection sucks imo, but I don't use it for movies. I use it for tv shows. and my nieces get a SHIT ton of use outta of it. they have great docu's on there that I watch and really I have no beef with their selection source anymore.
for 8 bucks, it aint gonna break me considering nothing out there has a better selection for the price.

Yeah I've literally watched over 100 documentaries in the last few years.

[roliath]

The problem I think with Netflix and their decision is this:

Their services and selection at best (from what I heard and witnessed minimally) was mediocre and the fees were low. With that being said the moment they raised their prices the price to quality ratio wasn't there anymore. The users realized this and jumped ship as a result. Unless they change up what they offer I don't see a whole lot of people running back. Now of course I am sure there will be a few people who realize there is nothing else and they will come back but as far as the majority is concerned, I don't think they are coming back, unless they make drastic changes to their slections and offerings.

JMO

yeah their movie selection sucks imo, but I don't use it for movies. I use it for tv shows. and my nieces get a SHIT ton of use outta of it. they have great docu's on there that I watch and really I have no beef with their selection source anymore.
for 8 bucks, it aint gonna break me considering nothing out there has a better selection for the price.

[Sgt Beavis]

Do you have the link to the Q4 report card? I can only find Q1.

http://techblog.netflix.com/2011/10/netflix-performance-on-top-networks.html

[CJ]

Has anyone heard if FIOS is throttling Netflix?

I have Charter with just an 18mbit connection but Netflix has been flawless. Netflix has said in the past that Charter is the only ISP that doesn't throttle their service at all.

EDIT: Disregard. Netflix released their monthly ISP report back on the 12th and FIOS was the only service that outranked Charter.

Do you have the link to the Q4 report card? I can only find Q1.

[IHaveAMustang]

Redbox just raise their rates by 20%. Wonder how many customer they'll lose.

Not me. Redbox increased their rate due to an increase in the cost of Debit Card transactions. They didn't do it like Netflix just to make more money, they did it because costs are going up to do business...And I don't even rent a redbox more than 3 or 4 times a month, less than a buck over the course of 1 month is not even noticable...

[Sgt Beavis]

I like the movies, documentaries and so forth. Only thing that really irritates me is the interruptions in the streaming lately. I have 30/30 internet via FIOS and a rock solid home network with all fairly high level gear. Zero problems elsewhere, except for Netflix. Only variables are the TiVo I do the streaming from and Netflix. May try it on my blu-ray player that does Netflix, see if that helps.

Has anyone heard if FIOS is throttling Netflix?

I have Charter with just an 18mbit connection but Netflix has been flawless. Netflix has said in the past that Charter is the only ISP that doesn't throttle their service at all.

EDIT: Disregard. Netflix released their monthly ISP report back on the 12th and FIOS was the only service that outranked Charter.

[ceyko]

I like the movies, documentaries and so forth. Only thing that really irritates me is the interruptions in the streaming lately. I have 30/30 internet via FIOS and a rock solid home network with all fairly high level gear. Zero problems elsewhere, except for Netflix. Only variables are the TiVo I do the streaming from and Netflix. May try it on my blu-ray player that does Netflix, see if that helps.

[Nate]

Business logic 101 says you can't raise prices without a greater "perceived" value.

As a customer I am used to paying X while getting a certain value. My two options are pay X plus 6 bucks to keep the same value or pay X and get less than what I had before? Makes no sense to your average consumer regardless if either option is still cost effective or useful for them.

My opinion is that Netflix could have obviously handled this better by simply adding some feature so customer Joe Schmo perceives it as additional value to justify a price increase regardless of it being worth it to them. Even if they don't use new feature, the value is there in their brain to justify it and keep them paying every month without second thought. Instead everyone went "fuck this I'm getting screwed. I'm out!"

I dropped to streaming for a few month but the selection never improved so I canceled. I didn't see the value of 1-2 mediocre movies a month for 10 bucks where I can on demands a new release on u verse for 6.

[347Mike]

what alternatives are there? hulu plus is a joke.
dish streaming is only available to dish users. what else is out there?

The problem I think with Netflix and their decision is this:

Their services and selection at best (from what I heard and witnessed minimally) was mediocre and the fees were low. With that being said the moment they raised their prices the price to quality ratio wasn't there anymore. The users realized this and jumped ship as a result. Unless they change up what they offer I don't see a whole lot of people running back. Now of course I am sure there will be a few people who realize there is nothing else and they will come back but as far as the majority is concerned, I don't think they are coming back, unless they make drastic changes to their slections and offerings.

JMO

[roliath]

what alternatives are there? hulu plus is a joke.
dish streaming is only available to dish users. what else is out there?