Greedier Than Netflix (for Now)

In, the movie, Wall Street, Michael Douglas (as Gordon Gekko) uttered his most famous line: "The point is, ladies and gentleman, that greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit."

Wow, that's great screenwriting, and it has some raw truth to it.  The quote also sounds like something one would expect to hear at a Netflix shareholder meeting.

On the topic of greed, many people feel Netflix is getting greedy by taking advantage of their huge market share and hiking fees on many subscribers by up to 60%. Netflix may, in fact, be a greedy company; however, in Netflix's defense, there are actually some greedier entities. Here is a partial list of those that may still be just a little greedier than Netflix.

• professional gamblers
• casino owners
• used car salesmen
• car dealership service advisors
• automotive finance specialists
• credit card companies
• two-year-old children
• drug dealers
• politicians
• bank robbers
• mortgage brokers
• Hollywood executives
• record companies
• pimps
• dirty cops
• third-world dictators

So maybe Netflix is not so bad. If Netflix wants to compete in the big leagues of greed, however, they will need to take things up a notch with at least one more big fee increase to gouge the subscribers. That just might put them over the top. Hmm, do you think Netflix will be able to hold off on that next fee increase until next year, or will they, in the spirit of competition, just go for it?

Canceling Netflix? You Are Not Alone

Angry subscribers warned Netflix, but Netflix did not listen. Netflix subscribers threatened to cancel their subscriptions if Netflix raised prices. Netflix raised the prices anyway, and many subscribers appear to be following through on their threats.

If you are one of those incensed subscribers and you are ready to exit Netflix, you are not alone. Read "Higher Netflix Prices Equals Fewer Subscribers" by Michael Liedtke for the details.

If the Netflix member cancellations continue, it could possibly become fashionable to drop Netflix. These customer backlashes tend to take on lives of their own and snowball. Just ask the last company who dominated the video rental business, got too cocky, and started screwing around with their customers. How did that work out?

With the added revenue from much higher subscription fees, Netflix may very well weather this storm, but the New Red Menace may have gone a bit too far this time. We will just have to wait and see how many subscribers are going to continue taking the abuse from Netflix and how many are going to find somewhere else to wait weeks for new releases, rent scratched DVDs, and have their ISPs and computers blamed for streaming video problems.

Throttling Suspicions for Netflix Streaming Content

The latest controversy surrounding Netflix is about the throttling of streaming content over the Internet. Some Netflix subscribers have strong suspicions that Netflix is limiting their ability to view streaming content by forcing unusually long data buffer times that can force a viewer to wait for many minutes or hours before viewing a movie or show. Netflix and their defenders say some Internet service providers must be limiting their users’ data downloads through these buffer delays.

Regardless of who is causing these buffer delays, they are a problem, because they can greatly limit a Netflix subscriber’s ability to view streaming content. The real problem here is we do not know the true cause or culprit. We cannot trust the ISPs, because they are sometimes unscrupulous companies who hide behind technology and defend themselves with nonsensical industry lingo. We absolutely cannot trust Netflix, because, a few years ago, they were caught throttling subscribers through the mail and would not admit it until lawyers got involved.

Both the ISPs and Netflix have the ability to throttle customers and both could benefit by throttling. Since neither side can be trusted, throttled Netflix subscribers are in the dark. As of now, it appears that some Netflix subscribers who access streaming content might be getting throttled over the Internet. The question is: If this throttling is intentional, who is doing the throttling?

Click below to read Riyad Kalla’s article on The "Break It Down" Blog about streaming content throttling at Netflix.
"Netflix Throttling Instant Video Streaming Performance for Viewers"

Missing-DVD Pitfall in the Netflix Class Action Lawsuit Settlement

If you intend to exercise your settlement benefits from the Chavez vs. Netflix class action lawsuit, be very cautious about the missing-DVD pitfall in the settlement. If you accept DVDs from Netflix, you will have to make certain you return the DVDs within the allotted timeframe and that Netflix acknowledges the returns. Otherwise, you risk being charged for the missing DVDs.

Many former Netflix subscribers have complained their credit cards were charged for missing DVDs after canceling their Netflix accounts. The reports of this practice are so common that Netflix looks suspiciously as if they might be pretending to not receive DVDs from canceling subscribers just to squeeze extra money out of each departing subscriber. This practice has never been proven, but the occurrences raise suspicion.

If this dishonest business practice does exist, the Chavez vs. Netflix settlement beneficiaries are at a considerable risk of being charged for DVDs which Netflix does not acknowledge receiving. A beneficiary ending a three-out plan could easily be on the hook for $60 or more after his/her free subscription month. That is a lot to pay for one free month of DVDs.

If you are concerned that Netflix may fraudulently charge you for DVDs you actually returned, you may reduce your risk by taking some extra precautions. The steps below could help you dispute any illegitimate charges on your credit card from Netflix.

1. A few days before your free subscription ends, delete every title from your queue. This should prevent Netflix from shipping more DVDs to you.
2. At least one day before your subscription ends, use the Netflix Web site to report as missing any DVDs you have not yet received.
3. Return all of your DVDs to Netflix within the allotted timeframe, mailing the DVDs using USPS tracking numbers and/or signature verification. This will provide proof of return.
4. Save full documentation of your actions.
   

In the following months, carefully check your credit card statements. If Netflix still charges your credit card for missing DVDs (or makes any other unjustified charges), immediately contact Netflix to dispute the problem. If Netflix does not fully credit the unjustified charges to your credit card, contact your credit card company and dispute the charges. In many circumstances, your credit card company will reverse the charges, and you will not have to pay.

If you feel Netflix is a completely honest and ethical company who would never attempt to cheat you, then none of these precautions are necessary. However, if you think Netflix may be a shady and greedy company, which is always looking for ways to milk its customers, be cautious. If Netflix fooled you once, shame on them. If Netflix fools you twice, shame on you.

Netflix Tips

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