Despite A Competitive Future, I Really Hope Netflix Succeeds
Netflix’s stock recently received an analyst downgrade, forecasting a rocky road ahead. The company is managing a transition from a successful DVD-by-mail business to the more challenging area of delivery via the Internet. That future will take expensive infrastructure investment, plus tricky negotiations with increasingly reluctant content holders (Warner recently requested a delay in DVD rentals, and Disney may pull movies from Netflix streaming). And by moving online, Netflix increasingly competes with big, cash-rich Internet savvy companies claiming a stake in online video (Google [rentals via YouTube], Apple, Amazon, cable companies).
Still, I remain bullish on Netflix because they get some — very important — things right:
- It’s a great deal. Paying $10 — $20 a month for unlimited DVDs, Blu-Ray discs, and Watch Instantly streaming is personally, an amazing deal. With as many movies and TV shows from all the major studios as you can handle, other subscription services seem like a waste of money (newspapers, magazines).
- Customer first. Any time there’s a delay sending DVDs out due to a glitch on their end, Netflix is quick to admit fault and refund money. I received a scratched DVD and they sent a new one out immediately. I even lost a DVD, and there was no charge (
- They get usability. I’ve found the Netflix Roku box extremely, refreshingly easy to use — even simpler than the Apple TV. The Netflix website is similarly elegant, in particular the different colored buttons to add to your DVD queue (red), Watch Instantly (blue), or a save a movie that doesn’t exist yet (green). Queue management is easy to do via the website or through an iPhone app. Both of my problem-disc situations above easily solved via a “Report Problem” link next to a recently-received movie in the queue.
- Netflix Origami. Sorry, serendipity dictated I toss that in there.
Anyhow, while I agree Netflix faces huge challenges going forward, a company with a great product that exceeds customer expectations, in a fair world, really deserves to succeed. I’ll be extremely sad / pissed if Netflix fails.
I dropped my Netflix account a while ago, only because I haven’t had nearly as much time as I used to to watch movies. But I still think it’s a great service. One of the few truly brilliant ideas of the first dotcom bubble.
I hope they figure out a way to keep it going, too.