How Long Before You're De-Throttled? And other questions of a throttling nature....

[ColSlade1]

I was just wondering if anyone knew the answer to these three questions:

1.) How long do you have low rental activity before you're taken off the throttle list (I know that's not what it's called, but I don't know how else to refer to it)?

2.) I know this was answered in a previous thread, but I still don't understand... Why is it if I lower my plan (less DVDs), because I want less DVDs but more current releases, that NF doesn't lose money?

3.) Netflix operates a business plan that only profits if it's not used the way that it is advertised. To insure that the business stays profitable, they treat heavy returning users (less profitable) differently than slower returning users (more profitable). Is it ethical to create a business plan that if used as advertised will cause the company losses and then to prevent said losses to treat certain customers differently?

And before people go on the typical rants I understand:

1.) The contract does say this practice now. I am not questioning it's legality.

2.) I am happy with Netflix. But my wife who only wants to view New Releases gets discouraged when we get passed over because I view movies at a faster rate.

3.) I am neither threatening to leave nor switch to BB.

Just wondering how y'all would answer these questions...

[Aran]

I would love to hear the answers to these questions. I am continually getting my new releases skipped over, up to 12-15 movies at a time and I am VERY frustrated. I thought by having the six at a time plan (i.e. spending more money) I would for sure get at least half of them new releases. This obviously is not the case. I dropped down to three at a time, and they skipped the top 10 again. I don't understand why they punish the people who spend more money, that would not work in any other business venture. I am also tired of the form emails telling me those who spend more get quantity while those who spend less get quality. Obviously Netflix doesn't lose money when you downgrade because they continue to send you crap movies. Don't bother taking off the movies you don't really care about, they will just not send you ANY movies instead of the new releases. If BB was comparable I would change in a second, and I am NOT happy with Netflix and their "business" plan at all. I might as well be flushing my money down the toilet.

[ColdOne]

I thought by having the six at a time plan (i.e. spending more money) I would for sure get at least half of them new releases.

You do get new releases quicker if you are on the 6-disc plan. Assuming you watch the same number of movies per month, that is. If you upgrade from 3 to 6 and still watch and return all your discs immediately then you are not a more profitable customer (less profitable, actually) and they needn't reward you for that.

I don't understand why they punish the people who spend more money, that would not work in any other business venture

Netflix rewards their most profitable customers, just like any other business. Have you asked the airlines why they punish infrequent fliers by making them board last and by giving them the lowest priority for upgrades?

Obviously Netflix doesn't lose money when you downgrade because they continue to send you crap movies.

That's not it. Simple math will show that half of a negative number is still negative.

[ColSlade1]

You do get new releases quicker if you are on the 6-disc plan. Assuming you watch the same number of movies per month, that is. If you upgrade from 3 to 6 and still watch and return all your discs immediately then you are not a more profitable customer (less profitable, actually) and they needn't reward you for that.

And what is that magic number?

[ColSlade1]

Netflix rewards their most profitable customers, just like any other business. Have you asked the airlines why they punish infrequent fliers by making them board last and by giving them the lowest priority for upgrades?

Perhaps... but the airlines generally do not charge to become a frequent flyer (or a Netflix member in this analogy)... and depending on how much money you spend once you are a frequent flyer, you get certain benefits... so following that example, higher disc plans should be treated better,

Also, the airlines don't say, "Well, you've flown a lot this month... so we're going to just delay you at your next layover to let some of our other less frequent customers get to their destinations first... they might fly more that way."

Hence, your analogy is a little flawed.

[Aran]

Yeah, what he said!! Also, can anyone answer his first question?

[Aran]

If Netflix has 8 million people who want "No Country for Old Men" , then they should have 8 million copies of that movie to send out.

[ColdOne]

And charge us $100/month. Good luck on your career in business.

[Headcheese]

That is the most ridiculous statement I've heard in a long time!

[Carmen n'ha Lydia]

Aran, I generally agree with all you say, and totally understand your frustrations, but this last statement's not so reasonable, because, what happens when all 8 million people have viewed it, then? What makes more sense, I think, is a "first come first served" kind of program, where when you reserve a movie by saving it, you're put on a list the day you reserve it, and then served as your name comes to the top... and that should include recent releases... but like much else, this seems to be waaaay too complicated for their (full-time) programmers.

I say full time because a service rep so told me the last time I had the misfortune to need to talk to one. Nothing got resolved, of course, I just received more lame explanations of why what I suggested/wanted was not possible.

I'm gratified, though, to learn that others feel as I do, and suspect that there is such a thing as "throttling", and if so, then they surely have a program that spots us and tags us for, well, frustration, at the very least. The word "unlimited" doesn't mean much in their advertising, I guess.

Peace, Hippy Nana

[Randy Why?]

I came to Netflix for its deep catalog so my picks are usually older or more obscure. My requested movies are usually available whenever I want them. My guess is Netflix has enough users with my proclivities to keep many customers happy.

[wowwee123]

For those interested in the not-so-high-in-demand titles, like you, will be very happy with the service.

[munin]

1) There really isn't such a thing as a "throttle list" (by any name). Each distribution center simply prioritizes its local customers each day based on various factors, including frequency of rentals, and then serves them in order. If your frequency of rentals lowers compared to other customers, you'll get higher priority. You're not getting "Very Long Wait"s because you're on a list, but because Netflix can estimate how long it will be before demand for a title drops enough that there will still be copies available at your distribution center by the time the daily shipping queue reaches you.

2) If I understand your question correctly, it's not primarily the plan you're on (though that does apparently go into the equation somehow), it's your turnover per slot. Say you're on the 3-discs-out plan and you view 6 titles per month -- you're effectively paying Netflix $2.83 per disc. If you increase your viewing to 12 titles per month, you're effectively paying Netflix $1.42 per disc. If you increase your viewing to 18 titles per month by turning them around very quickly, you're effectively paying Netflix $0.94 per disc. Netflix pays a certain amount of postage per shipment (both ways) and has fixed overhead for employees, distribution centers, etc. So you don't get higher shipping priority by lowering your plan, but by lowering your turnover rate. If you reduced your plan, you likely wouldn't change your turnover behavior so it wouldn't affect your priority.

3) There are very few businesses and industries that do not treat their highly profitable customers better than their least profitable customers. It's even accepted practice in many industries to "hide" that fact (simply by not offering deals or discounts to some people, or not mentioning to other customers when they've moved someone else to the front of the line -- which is really all Netflix is doing). Netflix has to prioritize its shipments somehow, and it has chosen to do it in a way which keeps its most-profitable customers happy, while still providing an unbelievably competitive service to its least-profitable customers (I'm getting my movies at about $0.90 per disc, compared to my local store which charges $4 -- but I don't care too much about new releases: a good movie will still be a good movie a few months from now, there's plenty of other good movies to watch today). Especially now that Netflix provides so much information about their shipping policies, I see nothing unethical about it.

I've collected the various statements by Netflix about the matter in my contribution to the Unofficial FAQ.

It sounds like you and your wife have different goals for your Netflix account -- she wants more new releases and you want more movies. If that's true you may both be happier with separate accounts. Or supplement your Netflix account with the occasional trip to a corner store (I honestly find it hard to recommend that since a store rental for me costs 2/3 as much as an entire monthly Netflix slot -- but if new releases are worth that much to your wife, then ... they're worth it).