Is Netflix in a death spiral?

Return To Article
Add a comment
  • Eliot Santaquin, UT
    Sept. 17, 2011 12:08 p.m.

    OK. That's a major overreaction. I didn't say "don't watch movies." I said "Drop Netflix." Besides, I am doubting that people are subscribing to Netflix to watch movies for their literary value.

  • Brian Utley Freedom, IN
    Sept. 17, 2011 9:30 a.m.

    Eliot: Drop Netflix and read some books. Everyone will be better off in the long run.

    Wow! You appear to have missed the value of movies as literature. One of the great revolutions of our times. Why is reading books better than watching movies? They're merely different, with each having its own strengths and appeal. You're suggestion is about as appealing to me as reading nothing but the scriptures and purposely avoiding all "story telling" literature---ignoring the value and traditions of our race having learned much from stories told around the "campfire," as it were.

  • Eliot Santaquin, UT
    Sept. 17, 2011 8:50 a.m.

    Drop Netflix and read some books. Everyone will be better off in the long run.

  • awsomeron1 Oahu, HI
    Sept. 17, 2011 6:05 a.m.

    What did you do before yoour Netflicks and that was not long ago.

    What did you do before disc.

    What did you do before VHS or Betta.

    What di you do before Windows 3.1.

    Before Vic 64 or Vic 20, before Ateri and before Pong.

    What did you do before Color TV, 24/7 TV, or Black and White TV.

    What did you do before Cable or Dish. Or when the Apt was small and the Dish was very big.

    Before the Phone, Before the Car, Before the flush Potty. Before the Lights, etc.

    Answer you got along just fine. Trust me if Netflicks goes down which it won't you will get along just fine.

    Stock Wise I might want to pull my investment out but I would not sell the rest.

    If I started with X amount I might pull that, which leaves X amount all profit and just leave that. A lot of people think thats losing but its not.

    Do you realize the chump change they pay on a 10 year bond these days.

    Thats why I loved Jimmy Carter, Not everything during inflation, inflats. Buy and hold what does not. Adapt or Die.

  • awsomeron1 Oahu, HI
    Sept. 16, 2011 9:44 p.m.

    This is Stupid mainly because of the size of the increase and the starting amount under 10 dollars for all you can watch. Now it would be about 15 or 16 per month for all you can sit and watch. Still cheaper then 1 movie for two people.

    There is No Video Store in my town now nor the next town over either West or East. However there are the 1 Dollar knoisks in the Food Stores. This is what happens when the Comp goes out of business. The price goes up. People who leave will moswtly come back $5 is chump change. If you want it you will buy it. My daughter has it on the upstairs TV, Her and My Wife enjoy the movies.

    I do not have Dish right now money is tight and choices have to be made. You can always turn your TV Off and Read your Scriptures or Sunday School Lesson.You cna the Scriptures and Lessons at the Church Web Site. I think we are on #38 this week.

    This Netflick thing should be a massive non issue. Unless you have Stock which I would Hold.

  • toandfro1979 TACOMA, WA
    Sept. 16, 2011 5:40 p.m.

    Hey everyone! This is the solution if you intend to discontinue your Netflix service. Simply use Salt Lake City or Salt Lake County libraries. Both systems have a vast array of entertainment DVD options. As a resident of Salt Lake county, you can qualify for both cards. Oh yeah, the greatest part is--it's free. It just requires you being responsible enough to return items back on time.

  • katamb-midvale Cottonwood Heights, UT
    Sept. 16, 2011 5:36 p.m.

    $22 is too much to pay for the watch online + 2 DVDs out at once service. Once I watch a few documentaries I can't get anywhere else I'll go down to the $7.99 watch online service. It's a shame because I've enjoyed getting those red envelopes from Netflix and having their services.

  • Ann_Outsider OREM, UT
    Sept. 16, 2011 5:08 p.m.

    @Kickit023, that is exactly what Netflix wanted for their subscribers to do. Their cost of streaming is much lower than that of discs (think shipping, etc.), so for them to move a significant amount of subscribers to streaming only plans increases their net.

    Like others, we killed cable this spring. We rely on over the air tv (yes, people you can watch local tv programming, including BYUtv, for free), Netflix, Hulu and Amazon Prime. Amazon is increasing the amount of streaming on a daily basis. As their streaming library gains more parity with Netflix we will reevaluate and most likely move back to a disc only plan at that point.

    I found it quite funny how people complained about Netflix prices and pay over $150 a month on cable or dish services!

  • Kickit023 Eagle Mountain, UT
    Sept. 16, 2011 4:00 p.m.

    What Netflix doesn't mention is how many people downgraded their account, which also means a decrease in revenue. I still have my Netflix account, but I downgraded it to just include the streaming and no more DVD's. This will save me a few bucks a month, but how much is it losing?

  • Brian Utley Freedom, IN
    Sept. 16, 2011 3:45 p.m.

    My disk rate dropped by $3 with all the changes. I was paying $16 for two-disk service. Now I pay $13, after tax. Not much is in the streaming library anyway, and I don't have download space on my daily fair-use Hughes Net satellite service. So it's a win-win. Their disk service is two-day turn around. I have all the movies I can watch. How can I complain. Viva Netflix.

  • Kearns_Dad Kearns, UT
    Sept. 16, 2011 3:45 p.m.

    We dropped Netflix and found Redbox cheaper for the amount of movies we watch in a month. A little inconvenient having to drive but we should get out of the house a little bit more.

  • CARL South Salt Lake, UT
    Sept. 16, 2011 3:27 p.m.

    I am keeping dvd by mail due to closed captioning was not perfect, neither do audio qualities. Streaming is subjected to limits that Comcast may implimented on its system.

  • The Rock Federal Way, WA
    Sept. 16, 2011 3:01 p.m.

    If there is a movie I want to watch I could just get on Facebook and update my status saying, "Does anybody have Harry Potter and the Holy Grail that I can borrow tonight?"

    I'll bet that I would have many offers, especially if the movie actually existed.

    The free video sharing model could destroy any streaming model out there.
    I just hope that my friends rewind the DVD's before returning them. Rewinding DVDS is such a pain.

  • Esquire Springville, UT
    Sept. 16, 2011 2:52 p.m.

    Hardly seems like a "death spiral." Media overstatements if you ask me.

  • Pagan Salt Lake City, UT
    Sept. 16, 2011 2:42 p.m.

    'The reason lost in DC wrote that was not just because of this post, but we can figure anytime we see your post that it will be about politics, regardless of the context of the article. We are tired of it.' - bricha | 1:12 p.m. Sept. 16, 2011

    Then stop reading. :)

    I have not called anyone names. Presented the information in a civil manner. And, most important...

    I was responding to a question.

    A person of your intellegence should realize that continuing to ENGAGE someone on a public forum while COMPLAINING about it is only self-defeating.

    You are perpetuating the 'incessant flash', right now.

    If you don't like my post, that is fine.

    I still didn't make them up.

    And, I'm not forcing you to read, or reply to them.

    Good day to you.

  • SpanishImmersed Mesa, AZ
    Sept. 16, 2011 2:14 p.m.

    The Netflix alternative may be Blockbuster Total Access offering unlimited streaming plus one DVD by mail at a time for $9.99 a month, $6 less than Netflix.

    They include games, blu-ray DVDs, and much newer releases--available weeks before netflix or redbox. They also offer in-store DVD exchanges, that's if you can find a participating location that hasn't shuttered yet. I'm also unsure of how their catalog compares to Netflix for older movies and TV series.

    My friends watch Netflix on their Xbox360-live. Xbox also has ESPN3 for college football and other sports at HDTV quality.

  • goodDr. sandy, UT
    Sept. 16, 2011 1:46 p.m.

    diagnosis--pagan has onetrackminditis. Continually focusing on old articles to prove that obama is the best. I believe that netflix is much like the democratic party. They are losing party members due to poor service and broken promises.

  • dtashby DRAPER, UT
    Sept. 16, 2011 1:31 p.m.

    It would be foolish to blame this spiral soley on the price increase. Rather it's Netflix taking customer loyalty for granted. I quit my account when Netflix VP of Communications Steve Swensey issued a statement saying that those of us that hated the new user interface lthey rolled out last May were in the minority and didn't matter. Mix this with a weakening movie selection and higher price, I no longer feel loyal to Netflix and am willing to part ways if this is how they view their customers.

  • Moderate Salt Lake City, UT
    Sept. 16, 2011 1:24 p.m.

    and they might lose the Starz movies in February?

  • bricha lehi, ut
    Sept. 16, 2011 1:12 p.m.

    The reason lost in DC wrote that was not just because of this post, but we can figure anytime we see your post that it will be about politics, regardless of the context of the article. We are tired of it, you have your opinion and we respect it but why do you have to incessantly flash it in front of our eyes especially when we are reading an article that has nothing to do with politics.

  • MAYHEM MIKE Salt Lake City, UT
    Sept. 16, 2011 1:12 p.m.

    Regarding Netflix, now that the price has dropped, investing advice: buy! buy! buy!

  • CougarBlue Heber City, UT
    Sept. 16, 2011 12:57 p.m.

    Pagan we have learned well from Liberals.

  • Schwa South Jordan, UT
    Sept. 16, 2011 12:08 p.m.

    People are freaking out over the price increase. But what they'll realize shortly after they leave is that Netflix is still by far the best value in the market.

  • UbU@TheU American Fork, UT
    Sept. 16, 2011 12:00 p.m.

    Everyone has different objectives, but I personally dropped my cable about 6 months ago and bought a ROKU box and was living on Netflix and Hulu. It was a royal pain and limited viewing of quality programs, but the price difference made it 'worth it' to me.
    I'm one that dropped Netflix with the price increase. I've watched all the good documentaries on Netflix and I'm not sure if I've streamed a movie because of the poor quality of choices. We mostly had it to be background noise and something to entertain the kid's once in a while.
    I actually kept the lowest dvd plan w/Netflix ($4.99/mo for 2 movies) because I do like to be able to get the dvd's I want, when I want. Redbox is convenient and cheap, but I can't always find what I want. I do love Netflix for their DVD choices (everything ever made basically), but the streaming is really marginal in my mind.
    I put Direct TV back in my house last week. I definitely would not have switched, but the price spread didn't justify not having tv any longer for me.

  • UtahBlueDevil Durham, NC
    Sept. 16, 2011 11:57 a.m.

    Perhaps not a death spiral, but they surely will find out how elastic their demand really is. I did the math for my family... can you say "hello Redbox".

  • legalamerican Ogden, UT
    Sept. 16, 2011 11:48 a.m.

    It's not as much about what they offer or how much they SHOULD have charged. It's that they are following the crowd of other companies and hurting the general public when we are already being nickel and dimed to death. I am not a subscriber to Netflix, and I was wanting to. But I don't think I will simply because they have shown that the buck is far more important to them than a human.

    They have abandoned their original high minded goals for quick profit and I want no part in it. Obviously anyone can see the business upside, but I also care a little bit about decency.

  • Pagan Salt Lake City, UT
    Sept. 16, 2011 11:37 a.m.

    '... turning it into a venue to express your hatred for romney.' - lost in DC | 11:29 a.m. Sept. 16, 2011

    Mikey B simply asked me a question Lost.

    'Since when has finding a profitable business model been a disconnect...' - Mikey B | 9:42 a.m. Sept. 16, 2011

    I simply replied with a fact.

    A story printed by...the DSNews.

    Pointing out the disconnect between the profit goals of big business...
    and the well being of people, is not 'hate.'

    Shall I give other examples?

    Goldman Sachs, etc, etc.

    There is no shortage of the business bottom line harming the well being of people.

    BP oil spill, 11 dead.

    How strange that you claim I 'hate'...

    when presented with...the facts of the matter.

    Why is it conservatives always resort to hate...first?

  • giantfan Farmington, UT
    Sept. 16, 2011 11:32 a.m.


    Yeah, that makes sense, and like I said it did seem a little too good to be true. And if the bulk of the increase is due to studios wanting a bigger piece of the pie, then Netflix should have no concerns of remaining competitive in the market place.

  • lost in DC West Jordan, UT
    Sept. 16, 2011 11:29 a.m.


    this was a story about a video company. that's quite the creativity, turning it into a venue to express your hatred for romney

  • Last Stand Farmington, UT
    Sept. 16, 2011 11:26 a.m.

    Re: CheeseFries

    I'm not privy to all the details and maybe Netflix has released the statistics but the loss of 0.6 million subscribers is a net result, as in total number of new subscribers minus those that they lost during the period. Let's suppose they lost 5%, or 1.2 million, of their subscribers because of the price increase. That means they gained .6 million new subscribers. Since their original forecast was for 25 million subscribers by the end of September, or an overall net increase of .4 million, then they either underestimated the number of subscribers that would cancel, and/or the number of new subscribers they'd be able to attract. If Netflix is comfortable that the negative effect the new pricing would have on current subscribers is over, then they can expect to see growth at the same rate of new subscribers as they saw last quarter, without the mass exodus of existing subscribers. The market would like to see bigger growth comparable to what Netflix has shown the last 4 quarters but that was probably not sustainable longterm anyway. If they are forced to pay more now for content, they should be able to remain competitive.

  • Redshirt1701 Deep Space 9, Ut
    Sept. 16, 2011 11:08 a.m.

    To "giantfan | 9:09 a.m." you seem to have missed the articles where Netflix explained the jump in prices. Basically what happed was that the TV studios wanted to charge more for what they made avaiable to Netflix. Since Netfix's costs were going up, they had to charge more for their service.

    Unfortunately there isn't another services that has as much streaming content available as Netflix.

  • Johnny Triumph American Fork, UT
    Sept. 16, 2011 11:00 a.m.

    Their big mistake came in under pricing the commodity in the first place, presumably done to attract a very fast customer base increase. $10 for one dvd at a time and unlimited streaming was not supportable, ever, so an adjustment was needed...but it came at a time when they'll lose a few of those early customers.

    However, the $7.99 streaming is still a great deal, but their increase for a DVD made it not compete with redbox. I dropped the dvd option and can rent locally whenever I want to; I'll certainly not rent 8 movies a month from redbox so I'm still saving by going that route.

  • CheeseFries SALT LAKE CITY, UT
    Sept. 16, 2011 10:15 a.m.

    Re: Last Stand

    I was about to share the same points. Only 1 of 40 subscribers canceled their membership, while 39 of 40 are paying up to 60% more. It is unknown how many downgraded their plan to streaming-only, but ultimately Netflix stands to make a bundle. Once their quarterly profit numbers are announced, the stock will rebound.

  • Pagan Salt Lake City, UT
    Sept. 16, 2011 10:03 a.m.

    'Since when has finding a profitable business model been a disconnect...' - Mikey B | 9:42 a.m. Sept. 16, 2011

    Reply fact:

    *'Mitt Romney as job creator clashes with Bain record of job cuts' - By Lisa Lerer, Bloomberg News - Published by DSNews - 07/20/11

    'Employees who lost jobs at Bain-controlled companies more than a decade ago say they still hold Romney responsible.
    "I would not vote for him for anything," said Phyllis Detro, 68, who lost her job...'

    It is true, if you don't like it, don't use it.

    AND, everyone has the freedom to 'cry about it.' Insulting people using their free speech is in poor taste.

  • Mikey B West Jordan, UT
    Sept. 16, 2011 9:42 a.m.

    This is not a "vast disconnect between business... and the average person"... This all started after an announcement that many content providers were going to charge Netflix more to stream their content.

    Since when has finding a profitable business model been a disconnect... Seems like people are just mad... to the point of personal offense at this. It's just bizarre how angry many people got about this.

    If a service doesn't work for you. don't use it... People don't need to cry about it...

  • klove Roy, Utah
    Sept. 16, 2011 9:41 a.m.

    It wouldn't be a problem to split the service IF the streaming had all the movies. Instead its pretty sparse pickin's after a while.

  • Madden Herriman, UT
    Sept. 16, 2011 9:36 a.m.

    The problem is that there is a very small # of opportunities to purchase content for streaming. Even if Netflix is willing to pay much more than they have in the past, the studios are simply not willing to sell it to them.

    Netflix jumped the gun big time - they needed to secure the content rights FIRST and then determine if the split subscription was viable.

    In the past year, we've used the streaming to find mainly past TV shows. The streaming offerings are spotty - you go online and check the new releases and 99% of options are low class, straight to home video movies. You could tolerate the weak streaming when you also got the discs by mail, but without them being bundled, nobody will find the streaming worthwhile (especially when the Disney TV shows are pulled after the Starz deal expires).

  • Last Stand Farmington, UT
    Sept. 16, 2011 9:33 a.m.

    If Netflix had 24.6 million subscribers at the end of June under the old pricing structure then an increase of 60% in subscription fees and only a loss of 0.6 million subscribers between July, August and September would still be an impressive increase in revenue. If the avg. subscription at the end of June was $10 then Netflix would see an increase of revenue from 246 million a month to 384 million per month. That's pretty dang good. But of course that revenue increase was already built into the stock price before Netflix' announcement today and since the stock market always looks to future growth potential, any downgrade in projections is going to cause a kneejerk reaction in market trading. I'm sure stockholders are worried about the ability to reatin, let alone grow, its subscriber base and increase revenues but the fact that Netflix will only lose 0.6 million subsribers in three months after making their unprecendented, and what I thought to be a ridiculous, increase in pricing probably bodes will for them in the future.

  • Naruto Murray, UT
    Sept. 16, 2011 9:32 a.m.

    It sill beats the price of cable. Streaming Netflix and Hulu Plus for $16.00 a month is a steal compared to cable prices. If you want to stream HD Movies then sign up for Vudu. Still beats cable out by a long shot.

  • giantfan Farmington, UT
    Sept. 16, 2011 9:09 a.m.

    I killed my subscription when I got my e-mail announcing the change. I can't understand why they would do it thinking it was a good way to increase revenues. Maybe they can't continue to be profitible under the old subscription tier and that's fine. I thought the way you could stream unlimited movies from any computer, even my iPhone or my Wii, for about $10 a month seemed a little too good to be true anyway. Turns out it was, I guess.

  • Pagan Salt Lake City, UT
    Sept. 16, 2011 9:07 a.m.

    'Despite the guidance revision, we remain convinced that the splitting of our services was the right long-term strategic choice.' - Article

    A 19% stock drop in light of a 60% rate increase shows this is not the case.

    This shows the vast disconnect between business...

    and the average person.