“There’s still an echo and a bruise” from summer 2011 when Netflix infuriated customers by splitting the streaming and DVD rental operations — dramatically raising the price for those who wanted to continue to receive both services — CEO Reed Hastings told analysts this evening. The strong subscription numbers from the last three months of 2012 show that “we’re out of jail” in consumers’ eyes. He adds, though that “we still have a year and a half of probation.” That may be one reason he didn’t want to touch a question about whether Netflix might raise its price — something that would please investors. “We’re happy at $7.99 [a month] and not speculating about the future,” Hastings says. He’s upbeat about general trends, though. For example consumers’ growing interest in tablets and Internet-connected TVs is “very helpful to us.”
Analysts wanted to know how Hastings squared his eagerness to cut a deal to stream Disney movies with his dismissive comment after late 2011 when Netflix lost Starz — which now has the studio — that Disney only accounted for 2% of streamed viewing. But Hastings didn’t bite, except to say that Netflix is “more and more interested in exclusive content.” He adds that he doesn’t know whether Amazon bid for Disney. Hastings also kept a poker face about his eagerness to land Sony Pictures when its contract with Starz expires. “There’s no specific piece of content we must have,” he says. “It’ll just be a bidding negotiation.”


And they’ll stay on probation until they’ve built a decent streaming library. When I look at my queue and see that 9 out of 10 titles there are still available only on DVD, Hastings better not dream of a price hike. Flip tha proportion around and then we’ll see…
I agree. There are so many GREAT things about Netflix, ease of use, availability across multiple devices simulatenously, and great price point BUT a great library for their streaming content is not one of them.
Since studios are not selling digital streaming rights to everything they release on dvd-regardless of how old or new it is, combined with the fact that pay tv services have been engaging in locking the entire output (new/recent) of studios’ films under exclusive license for decades, the dream of having a one stop shop for every movie we ever want to see will remain just that, a beautiful dream. The monthly streaming subscription service area will wind up looking exactly like their cable based counterparts. You’ll have to subscribe to several, just to get a fraction of everything you want.
So, there’s always pay per view, such as Vudu.
I love Netflix. It reminds me of the drive-in SAME MOVIES.
Professor Falken
This is what I like to hear; a CEO cautious after beating expectations. Stark contrast to Tim Cook, who stood arrogant and bullish after missing expectations.
I love Netflix. They’ve done a good job getting some newer albeit more obscure movies (with many coming to Netflix before they’re available on DVD/Blu, such as The Loneliest Planet.) and an excellent job with their TV show selections.
Plus they’re doing it right. You add a movie onto Netflix and everybody watches it, it’s over in 2 hours and they never touch it again. You add a solid TV series onto Netflix and people watch it, it takes dozens of hours to complete and cost the same as many of those 2 hour movies.
There is always something to new watch on Netflix. I still find it a great value. I do streaming and one out at a time.
I find Netflix a great value for the money. It is impossible to have 100% of everything, and thus, following Hastings philosophy of best doing one thing well than many mediocre, their video streaming operation is the best in the land, and a God send for the dollar.
On the wish list that I wish Netflix would do (are you listening Netflix?):
1. Work with DVD/Stream players and TV manufacturers to automatically update the machines w/Netflix software that allows the user to search and incorporate movies into the queue directly bypassing the intermediate step of having to update the queue from your computer/smart phone/tablet, etc.
2. Provide the streamliners with the ability to select a DVD on a per movie charge, a-la-Red-Box. Obviously integrity is a factor here. If a popular movie can be incorporated into the streamline library, holding-off to scalp additional revenues is a sure fire way to dissapoint customers and lose them to the competition.
3. Continue growing the foreign movie library with true quality content. Netflix is large enough now that can afford to employ smart reviewers on the various international markets, to be selective and reccommend titles that are four to five star works.
Also, Netflix, please go back or at least in addition to what you have now. provide the option of selecting a title by its country of origin.
4. The Netflix model can operate in other countries as well. There is no reason why Netflix cannot be a global company.
In the end Netflix learned the hard way that respecting its customer base intelligence and pockets is not only good business, but a lasting way to keep doing so, growing and innovating.
Lets hope Hastings et al keep Netflix the win-win proposition it is.