Netflix CFO: Amazon won't rent DVDs
By Marc Perton 
posted Jun 18th 2005 9:05AM
posted Jun 18th 2005 9:05AM
Chalk up another one for Netflix. After beating Wal-Mart (how many companies can say they've done that?), it looks like another high-profile competitor has thrown in the towel — before even entering the market. Word is that Amazon, once assumed to be planning a DVD-rental service to compete with Netflix, has decided against it. In a recent analysts' meeting, Netflix CFO Barry McCarthy commented: "Today, I don't think they're coming," the Netflix CFO said. "I could be wrong. I guess we'll see over time." Amazon — which does rent DVDs in the U.K. — declined to comment. Don't rest on those laurels too long, Barry (if you're right, that is). After all, Blockbuster is still out there.
Netflix is god's gift to mankind, honestly.
Perhaps Amazon will start an online book rental service instead.
I was an original Netflix customer. As rates increased, I decided to try alternatives. I tried WalMart, but delivery times were slower than NetFlix. So I cancelled that one. Then I finally tried Blockbuster and they actually BEAT NetFlix delivery times! At a lower price! Don't know how long that will last, but for now I stay with Blockbuster.
Netflix should be more worried about growing beyond the whole DVD rental business. Online distribution is where its at. Watch what you want, when you want to.
Netflix was cool. My wife & I used to pay 49.95$ a month for 8 DVDs @ once. We didn't even have cable. If there was a show we liked, we'd just put a few of the DVDs at the top of the list. But now, with their ever increasing prices & the fact that you can't get more than 3 DVDs @ once any more. We've abandoned the whole concept.
For those of you who don't know, the rate for 3 DVDs a month used to be 9.99$... What a shame that they ruined the greatest service ever by getting greedy.
*shrugs* All I know is I'm going to sign up for BBusters service. I'm starting to get REALLY pissed with Netflix. Movies showing up 3-4 days after I return them. Movies that were in my queue being skipped for lesser movies down my queue list. Telling me they are shipping movies on Netflix's site when it becomes blatantly obvious that they aren't when they show up two days later. Movies that were “ready to ship” after I return a few movies suddenly the next day turn to “short wait” and they drop off some other movie down the list. And don't tell me that its the mail. The turn around time was excellent until I started hitting the TV series hard with a turn around time by me of 2-3 days. Generally get a couple DVD's on Monday, return them Wednesday. Get 3 more Friday. Drop them off Monday. Get 3 more Wed. Drop them off Saturday. Etc. They screw you over when you start having TOO good of a turn around time. We’ll see how blockbuster is.
I've been a Netflix customer for three years, two of those i've been a heavy user. I usually turn arround four to six DVDs a week and I have not noticed any of the "tactics" others have described. So far I'm very happy with Netflix. As for price, I paid $19.99 for the first year or so and they dropped the price as we all know (how rare is that?).
I've been a NF customer for a few years now. While I'm happy to hear that NF continues to show dominance in the market, competition is good for the consumer - so, I'm a little saddened by the fact that Amazon doesn't even want to try the game (at least at this point in time).
To comment about the Netflix Experience - In the time that I've been with them, they've increased their distribution network. Originally, I was serviced from San Diego, CA. Then came Atlanta, GA. Next, Fort Lauderdale, FL. Finally, Tampa, FL. I live in the Tampa Bay area, and can see almost a 48 hour turn around - I drop it in the mail Monday, I have a replacement Wednesday. Prices for the plans have fluxuated, having gone up and then down for my plan (3@Once). As far as the NF price plan is concerned, I'm okay with it. It takes money to have the library of titles they offer. It takes money to establish the distribution center network they have. It takes money to maintain that infrastructure. I, as a consumer, need to try and maximize my costs - assuming the cost to walk into Blockbuster and rent a DVD is $4 (I haven't rented from BB B&M in years) then I need to cycle at least 5 DVDs from NF to break even. Easily done.
Overall, I'm pleased with every aspect of my NF experience and would recommend the service. I've never experienced any of the behavior that others have complained about here. And, I've cycled through as many as 20-25 DVDs a month with regularity - although, it has been movies, mostly newer releases.