Netflix short on cash, long on problems

[Javaman]

http://bottomline.msnbc.msn.com/_news/2011/11/22/8956015-netflix-short-on-cash-long-on-problems


Paul Sakuma / AP

The exterior of Netflix headquarters is seen in Los Gatos, Calif.

By Marisa Taylor
Netflix, the embattled DVD rental and content streaming company, has found itself on hard times again.

Its shares tumbled on Tuesday following Monday’s announcement that Netflix would raise $400 million in cash by selling convertible notes and stock to T. Rowe Price Associates and Technology Crossover Ventures.

Netflix made headlines in recent months by first deciding to hike the price of its plan that allowed for one DVD rental at a time and unlimited Internet streaming, up to $15.98 from $9.99 per month.

The company turned the screw further by creating a spinoff company called Qwikster that it said would handle physical DVD rentals, while Netflix would soldier on with Internet streaming only. It quickly reneged after customers expressed confusion and outrage. Netflix CEO Reed Hastings issued an apology email to subscribers, but the damage had been done — the company estimated that the move caused 1 million customers to drop their Netflix subscriptions.

more at link...

[yourout]

1. Talk about collosal fuck ups. We dropped both when they raised the rates.

[JNelson6563]

2. Somebody really screwed this up.

It all started as a great idea. Brilliant actually.

then they fucked up. Twice. In very big ways that someone with only the slightest clue about marketing could have told them were very bad ideas.

Idiots.

Julie

[Ezlivin]

3. Maybe Apple will buy them

I've enjoyed Netflix for over 10 years now and it'd be a shame to lose them.

There's always rumors swirling around Apple's (or Google, Microsoft) acquisition of a company so that it can be reborn.

The future is on-demand streaming, though.

[justiceischeap]

4. and rebrand them, iStream or something similar. nt

[d_r]

5. lord I hope not

[eShirl]

15. dear god no

[Yavin4]

18. Yes, The Future Is Streaming, Whether It's Netflix, Roku, or Something Else

Operating a rental store is no longer profitable, and returning DVDs in the mail is also a hassle. Customers want to watch what they want, when they want. They don't want to wait for the movie to be returned.

[FSogol]

6. Their only problem is CEO Reed Hasting and anyone who voted "Yes" to his company killing ideas. n/t

[Bonhomme Richard]

7. There is a total lack of confidence in the top management. It is .....

no wonder that investors are nervous and for good reason. Hastings needs to step down from running things. I am sure he is a brilliant guy but so often the person that starts a company does not have the personality required to run the company once it takes off. It requires a different kind of mindset.

[quinnox]

8. I'm a customer and not happy lately

I keep getting dvds that are messed up or damaged and on certain parts in the movie either freezes or plays choppy with static on the picture.

My internet connection is not fast enough for streaming so that isn't an option, these defective dvds are starting to piss me off.

Netflix needs to get some new dvds and replace their old ones for some of these movies that get rented a lot.
And the CEO should resign after the missteps they did, that's a no-brainer.

[CRK7376]

11. I've received a

few broken cds over the past few years. Not a big issue for me, I send them back and get replacements in a day or two. I'm not crazy about the $5-6 increase, but still a value to me. I like both the streaming and cd libraries. Helps me kill evenings while I'm away from my family. I was upset when they planned to split the cd and streaming branches and make them two seperate accounts. That would have caused me pain and forced a decision to stay or go. Glad they dropped that plan.

[quinnox]

12. It got cheaper for me with the new rates and I still like Netflix

As a big movie buff, I am a fan of Netflix and their service of providing a vast library of movies and tv shows to choose from, I just hope they clean up their act and survive this trouble they are currently in of their own making.

[DCKit]

13. Can't blame Netflix for the damage done by the post office.

I had to cancel my membership a couple of years back after every 3rd envelope started arriving without a DVD inside.

Apparently, someone at the local post office was stealing the DVDs and mangling the envelopes to make it look as if the processing machines were to blame. Suddenly, I don't have that problem anymore.

[SheilaT]

9. I only recently discovered Netflix.

Actually, I've known it was around for quite a while, but didn't know about the streaming video until my son told me, and then I signed up. I have been very happy with them, and while I'm not totally crazy about the price increase, it's still cheaper than going off and renting DVD's would be. Plus, I've been catching up on TV shows I had never even heard of before, like Trailer Park Boys.

[thatgemguy]

22. Trailer Park Boys

The best Canadian TV show ever!!!

[SheilaT]

23. Isn't it great?

When I told my son that I was watching it, he was surprised. "Gee, Mom, I wouldn't think you'd like it, what with the f-word and all." Son is 24, I'm 63, and there are times when I get a little intolerant of the f-bomb, but that show is great. I have no trouble believing those characters. Plus, a while back I worked in the office of a trailer park for a while, and even though my experience was quite different from what goes on in this show, it helps me to relate.

[dawg]

10. I love the Netflix streaming service, and consider it a great bargain.

The company has a public relations disaster on its hands, but streaming content is the future.

I'm doubtful there will be such a thing as dvd's or blurays in 10 years.

[HipChick]

14. The problem with their streaming content is their old catalog

[dawg]

16. I'm easy to please.

I'm especially enjoying working my way through tv series I missed out on when they originally aired.

[kskiska]

17. Cheaper for me now

I've had very few reasons to complain. I love foreign movies and Netflix has loads of movies I'd never have seen otherwise.

[liberalnationalist]

19. I worked at Netflix

as a temp to hire...they tell that to everyone then they fire everyone. They have you coming in at 1pm-5pm and if your late you are screwed.
They are a very negative company to work for. So be warned do not work for them. They use and abuse.

[quinnox]

20. interesting, I have noticed they are advertising quite a bit in

the want ads, so I knew they must have a high turnover, which usually is not a good sign. Sounds like they have problems even in holding onto their employees.

[Javaman]

24. Sounds like amazon. nt

[bikebloke]

21. I'm sticking with the DVD's.

Streaming is unreliable where I live. And I did get a price reduction, though they never informed me about the changes. I had to change my account. Plus, I like foreign films, which they are chockablock full of.