Netflix a Good Service and Selection: Limited by Archaic Business Model and Technology

<p>I have been off cable for at least 2 months now. It's been a liberating experience. Bouncing between Netflix and Hulu to watch our favorite shows and movies is not difficult. What has been difficult is getting past the bone headed moves by the Netflix CEO, Reed Hastings, first trying to create two companies to stream movies and rent DVDs, doubling prices, and limiting concurrent streaming devices to levels not seen since around 2001. </p>
<p>There are times when Netflix has had technical glitches of accessing shows and what not. I expect that from time to time. It's technology and it's not perfect. I expect some mistakes in growing a business, but not limiting the customer experience, because of outdated technology and business models. </p>
<p>Separating companies to perform different features, limiting customer experience through technology degradation, and requiring independent and separate user accounts to get past the 2 concurrent device streaming limit is just plain old technology and reverse thinking. Why do I have to to create another username(email address) and password just so I can increase my concurrent streaming device count? That's another security combination I need to remember, write down, and manage. The onus should be on Netflix to do that, not me, the customer. </p>
<p>The specific limitation of 2 concurrent streaming devices is a level of access not seen since the early 2000's when there were no such things as an Internet enabled tv, smart phones, and media players. High speed Internet for residential access was in its infancy. Today every person I know has at least 3 personal Internet enabled devices capable of streaming Netflix. Families with kids have at least 10 to 12 devices all capable of streaming Netflix. Unfortunately, as a single account, Netflix is limiting the family to about 20% usage and preventing a family from using Netflix what it was designed for; Watching what you want when you want it. </p>
<p>I don't mind paying a little extra to add more concurrent streaming devices to my account, but I think it's ridiculous to require me to create a whole new account to increase it, and pay double. Pricing it as an additional $3 to $4 to double my access to four devices is an acceptable price increase. Charging double to double my access is not agreeable to me. Discount in quantities is typical. If I pay double, and yes it's more money for Netflix, but it's a pain in my behind to have to manage two separate accounts or be reamed for double prices. </p>
<p>I don't believe Reed Hastings has a handle on what this business has grown into. It spawned as an alternative to the brick and mortar DVD rental stores that were out of our favorite movies and charged late fees if it was returned a day late. In fact I was an early adopter. The company had some things to learn then, too. My first DVDs got lost in their ordering system and I lost the entire free trial period. I asked to extend it and they declined even though it was their fault. I stayed away from Netflix because of that incident for more than 5 years before giving them another try. I always watched from afar, though.</p>

<p>The initial business model created a recurring revenue stream for Netflix from movie buffs paying monthly. It gave them movies in the mail, giving them the time to watch and returning at their convenience with non late fees. Netflix then entered movie streaming giving us the immediate satisfaction we crave of watching a movie right then and there. At first it was all you can eat on as many devices as you want. Since some people took advantage and gave out their credentials to friends and family, and Netflix changed it to all you can eat on one device. People immediately screamed so now it's two devices. Hardly an improvement. And yet, through all of these device limiting modifications Netflix still lacks the ability to increase the device count at the account level, instead requiring the creation of a whole new independent account. </p>
<p>In my opinion, this is either a complete lack of intelligence and vision from Reed Hastings to effectively lead, grow, and develop the business, core infrastructure, and software, or it has something to do with the copyright holders placing unrealistic and innovation stifling monetary values on their content. Either way, it needs to be addressed by Reed Hastings and get the word out to his millions of customers that have been affected by the Archaic Business Model changes and outdated technology components .</p>
<p>There is a consumer demand for being connected and staying entertained with their favorite shows and movies. There is a growing movement to cut back, or even all the way out, the premium tv companies like Time Warner, Directv, Dish, etc and use these streaming services for a La carte and on demand streaming as a replacement or complimentary service. </p>
<p>The sooner these companies realize and accept the consumer cooce and direction the better the consumer experience can become. So long as greed does not get in the way and stifle the innovation that can bring us the services we crave at a price that is affordable and responsible. </p>

30 Days Post Cutting the Cable

It has been more than 30 days since I cut off my DirecTV and sent back my equipment. We have been happy with our choices on Hulu, Netflix, and watching TV in real time on the HD antenna. It's even been nostalgic in finding some TV shows from my childhood my wife and I are enjoying all over again. Shows like the Cosby Show, and Emergency! have made it into our Hulu lives. My son likes Emergency! because he is all into police and fireman. in fact, he was a policeman for Halloween. Essentially, we have enjoyed our new lifestyle. I will tell you, though it's not all roses, though. There are some drawbacks. I'll get into those shortly.

I received an email shortly after returning my equipment that included a survey link to tell DirecTV why I canceled my service. Essentially, it cam down to three things. Number One - I was locked into a 2-year contract and realized too late that it was a bad deal. Number Two - I was paying twice the rate for new customers and had a lower package than was offered to new customers. Number Three - Customer Service failed to act in a timely manner to make me a happy customer when I complained about the pricing and options available to new customers compared to my current options.

I have since received several emails about new promotions. I have also now started to receive phone calls from DirecTV account managers that sound like they are on a manufacturing line, telling me they can save me up to $360 a year! I don't even pay $360 a year right now for what I have, so does that mean they're going to pay me to watch TV? Unlikely, I'm sure. I told the guy three times I wasn't interested and he kept on keeping on, so stopped keeping on and hung up. I'm sure I'll get a call back in the few days again.

So what do we like about our new lives as cable cutters? The freedom of not having a 2 year commitment to some service I may not like. The freedom of watching a show or movie of my choosing when I want to. The ability for my family to watch something different from me. I also, enjoy the fact I have control over when and where people watch shows. We can easily lock out shows that are too mature for my kids. The limited commercials that appear, although one of those limited commercials is driving my wife nuts. I think she might actually tackle the poor actor in the Wynn Casino commercial if she ran into him in person.

The things I don't like are the limited account access imposed by Netflix. They limit each online account to 2 concurrent uses. I think that's a little short sighted considering the number of devices each person and family now has in their household. We have run into the limitation a few times and have been able to switch over to Hulu as a consolation prize when  it happens. If we have to open another Netflix, it's not the end of the world, but that eats into my savings for doing this whole thing anyway.

Hulu has trouble sometimes with delays in getting into and through commercials. Sometimes it locks up and we have to start the show over again, or back out and come back in. That may be just my media player device, as we have not really had the problem on a computer so much. Outside of that we have not had any other problems on Hulu.

My HD antenna works great giving a good, strong signal for many channels I watch and showing the sports that are available in HD and 5.1 digital surround sound. We get occasional blips and pixelation through the HD antenna. I'm not sure how much of that is the network or the antenna. My signal is solid and the weather is clear. I'm thinking it's mostly a network issue because some do it more than others. The big draw back altogether is I don't get to watch many sports. I tried the MLBtv, but quickly canceled. The blackout restrictions are ridiculous. I couldn't watch any Ranger games, even when they were away. The NFL option is way too expensive.

So overall, I am truly satisfied with the decision to cut the cable. My family is also satisfied and able to watch the shows they want. Even the ones they used to watch they haven't even asked about. It's been a pretty good decision. Our Internet is fast enough to handle multiple streams and still allow me to work and download files when needed. Not bad. My total TV bill is less than $20 per month. Including Internet my total right around $50 per month. I don't know many people who are paying for TV and Internet a total of $600 per year.