The media is going crazy over the Netflix news.
Stay or Go?
800,000 subscribers have been lost this quarter! While this is bad for the company, what, if anything, does it mean for you as a subscriber? Should you quit Netflix? All of this hype is making it hard to see the forest for the trees. I don’t think Netflix going to disappear over night – for that matter, I don’t think they are going to disappear at all. Did they make some very bad business decisions? You BET!
So back to my original question - what does the Netflix News mean for you as a Netflix subscriber? Well, really not a whole lot. I’d say that in some ways it’s a plus for the remaining subscribers. For just $7.99 a month you get unlimited streaming of movies and TV shows but now there are 800,000 less subscribers competing for that stream. Netflix performance has always been great for me, but I have to believe it’s only going to be better with fewer customers to draw on their infrastructure. I use Netflix with my Apple TV and think the service is easily worth $7.99. Think about it, one place to find movies and television shows. Unlike pay-per-view or a rental, there is no cost to you if you change your mind. You just choose another show and enjoy.
Are the networks and other streaming services competing with Netflix? Sure they are, but they are not nearly as convenient and user friendly as Netflix. When using other competitors’ websites, you have to browse the entire site to review the content. Not one website has a universal index that compares to Netflix. Sure, the content is a little dated, but they also have lots of variety. My girlfriend found an Australian soap opera that she loved. If she had to find a network that carried the soap opera, do you think she would have found it? NO! I’m currently watching the new Battle Star Galactic series (great series by the way!) and I get to see every episode from all of the prior seasons for one flat price. Their movie choices are good as well. Could they be better? Of course they could, but look at the price your paying! Remember how much it costs to rent a DVD? A minimum of $3 for one movie that requires you to leave the comforts of your home, drive to the store only to get there and find that they don’t have what you want! At Netflix their products are always in stock! Plus, with 800,000 less subscribers it’s probably delivered even faster.
Ok, so that’s my two cents on the topic. As is often the case, the news has blown out of proportion the impact that this has on you, the subscriber. The problems that they are experiencing does not have any effect on you. If you’re an investor in Netflix maybe you should care, but I think even from that point of view it’s an opportunity not a problem. As the consumer, we should take advantage of their stumble while we can. If they have learned from their mistake,I think they will come back from this no problem, both as a service and an investment.