Netflix: “Oops”.


A Netflix envelope picture taken by BlueMint.

Image via Wikipedia

Searched for this after some buzz on Twitter:

“We underestimated the appeal of the single web site and a single service,” Steve Swasey, a Netflix spokesman, said in a telephone interview. He quickly added: “We greatly underestimated it.”

You think?  Apparently a lot of people thought the same things that I did about the whole plan.  The whole article is interesting, and can be found here: Netflix Abandons Plan to Rent DVDs on Qwikster

Maybe now they can work on deals to stream more new movies… and a better back-catalog of older movies.  (Like the entire Star Trek movie series?)

I still love that Oatmeal cartoon.  I hope they do another one.

Qwikster is quite possibly the dumbest idea ever.


Image representing Reed Hastings as depicted i...

Reed Hastings is Absolutely Insane

Not only is it a dumb name, but separating the two services is ridiculous.  It had to be the answer to the question “What’s the worst possible thing we could do for business right now?”

Sorry.  I’m getting ahead of myself.  We all heard about Netflix recently separating their streaming and DVD services into two categories.  I thought I was in the minority, & while slightly tweaked at the price hike… kept with the two now individual plans.  I mean, I like access to the latest movies which are only available on DVD/Blu-ray.  I also like being able to go watch some older films in an instant without any planning whatsoever, and the cool TV shows available like the BBC’s Robin Hood that I would have normally never seen.

I’m sure there are people out there who think the streaming plan is useless, have no idea what Blu-ray is, and just want their DVD’s.  I’m sure there are people who want streaming movies… and probably can’t fathom why anyone would want physical media mailed to them.

I’m guessing that the same people who need a shelf full of 30 different kinds of peanut butter or an entire aisle full of bread varieties at the grocery store like to have options.  We also like things that help us get organized.

Having an online queue of movies that I’d like to watch is pretty cool.  Knowing that the same movie is available for streaming is also pretty cool.  The lack of this will be the opposite of cool, and I don’t understand how Netflix doesn’t see this.

This is also one of the strangest emails ever…

From: “Reed Hastings, Co-Founder and CEO of Netflix” <info@netflix.com>
To: me@my.email.address
Sent: Monday, September 19, 2011 3:25 AM
Subject: An Explanation and Some Reflections

Dear Eric,

I messed up. I owe you an explanation.

It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.

For the past five years, my greatest fear at Netflix has been that we wouldn’t make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us). So we moved quickly into streaming, but I should have personally given you a full explanation of why we are splitting the services and thereby increasing prices. It wouldn’t have changed the price increase, but it would have been the right thing to do.

So here is what we are doing and why.

Many members love our DVD service, as I do, because nearly every movie ever made is published on DVD. DVD is a great option for those who want the huge and comprehensive selection of movies.

I also love our streaming service because it is integrated into my TV, and I can watch anytime I want. The benefits of our streaming service are really quite different from the benefits of DVD by mail. We need to focus on rapid improvement as streaming technology and the market evolves, without maintaining compatibility with our DVD by mail service.

So we realized that streaming and DVD by mail are really becoming two different businesses, with very different cost structures, that need to be marketed differently, and we need to let each grow and operate independently.

It’s hard to write this after over 10 years of mailing DVDs with pride, but we think it is necessary: In a few weeks, we will rename our DVD by mail service to “Qwikster”. We chose the name Qwikster because it refers to quick delivery. We will keep the name “Netflix” for streaming.

Qwikster will be the same website and DVD service that everyone is used to. It is just a new name, and DVD members will go to qwikster.com to access their DVD queues and choose movies. One improvement we will make at launch is to add a video games upgrade option, similar to our upgrade option for Blu-ray, for those who want to rent Wii, PS3 and Xbox 360 games. Members have been asking for video games for many years, but now that DVD by mail has its own team, we are finally getting it done. Other improvements will follow. A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated.

There are no pricing changes (we’re done with that!). If you subscribe to both services you will have two entries on your credit card statement, one for Qwikster and one for Netflix. The total will be the same as your current charges. We will let you know in a few weeks when the Qwikster.com website is up and ready.

For me the Netflix red envelope has always been a source of joy. The new envelope is still that lovely red, but now it will have a Qwikster logo. I know that logo will grow on me over time, but still, it is hard. I imagine it will be similar for many of you.

I want to acknowledge and thank you for sticking with us, and to apologize again to those members, both current and former, who felt we treated them thoughtlessly.

Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions.

Respectfully yours,

-Reed Hastings, Co-Founder and CEO, Netflix

p.s. I have a slightly longer explanation along with a video posted on our blog, where you can also post comments.

This message was mailed to [me] by Netflix.
SRC: 1578.0.US.en-US
Use of the Netflix service and website constitutes acceptance of our Terms of Use and Privacy Policy.
(c) 2011 Netflix, Inc. 100 Winchester Circle, Los Gatos, CA 95032, U.S.A.

This is Charlie Sheen level insanity here.  This may be even Gary Busey level crazy.  (By the way, why is he in those creepy local Kia commercials?) 

This long-form is even crazier: An Explanation and Some Reflections …along with this.

I’m going to go out on a limb and say that none of your customers think this is a good idea.  Let me break it down for you:

  • The price increase for the base plan was dumb.  You realize that now.  Why not fix that?
  • A streaming-only service would be awesome… IF THERE WAS MORE CONTENT.
    • Streaming newer movies would obviously be the biggest draw.  Work out that licensing.  I know it’s not simple.  Figure it out.
    • Streaming more content & more current movies would make me buy new hardware.  Currently we stream Netflix through the Wii.  If I could get more new movies… I’d upgrade to a Bluray player that does streaming at a better quality or something like the Roku 2 player.
    • Old movies that are part of a series… only some are available.  You can stream The Wrath of Kahn but not the entire Star Trek series?  Dumb.
    • Special episodes/bonus content of DVD’s not available for streaming.  A minor annoyance, but still… Dumb.
  • I don’t want two distinct services where there was once one all-encompassing service.
    • One site to manage two queues is quite convenient.
    • I don’t want 2 separate charges for 2 separate services where there once was one.  I’m guessing no one else does either.
    • I don’t want to figure out for myself what’s available for streaming & what’s available on DVD.  Especially if I’m paying twice the price for the service.

Imagine going to your local pizza shop and they decide that they’re only going to do pizza because they do dough, sauce, & cheese really well.   If you want any toppings, subs, bread-sticks, drinks, or a salad… you need to go across the street and buy them.  Oh, now the place across the street sells wings too!  They have separate menus… but it’s just across the street, so no big deal, right?  Does this sound like a great idea, Reed Hastings?

Ridiculous.

[Woah – The Oatmeal read my mind!]

Furniture Follow-Up and Fallout


So,did you read the couch-buying blog and see the couches?  I did get some follow up from both sides.  You can see some in the comments section of the original blog, and I’d like to share some here…

I sent this to DFW via their contact form

Comment: Hello,

I wanted to write to let you know that my wife & I had an excellent experience with store manager Matt Walker at DFW in Pittsburgh earlier this evening.  We left a Value City nearby wholly disgusted with their salesperson, and our experience at DFW was such a great relief.

I blogged about my experience here:  http://wp.me/pwqzc-y2

Please pass my praise on to Matt and his boss.  I hope that such excellent service is rewarded!

Thank you for your time,
-Eric
.seitilibasid gninrael fo nuf ekam ot ynnuf ton yllaer s’tI

(Contents of my blog below for your convenience…)

…and got this back:

From: Andrew Robinson <arobinson2255@gmail.com>
To: eric_aixelsyd@yahoo.com
Sent: Mon, April 25, 2011 8:11:15 AM
Subject: Re: Contact Form

Eric. Thanks for taking the time to share your experience. We hope you don’t mind, but we have posted a link to your blog on our Facebook page.

PS. We are giving away a FREE sectional on our facebook fan page.   http://www.facebook.com/DFWFurniture#!/DFWFurniture?sk=app_121121694568521   just “like” DFW to enter….

On Sat, Apr 23, 2011 at 1:41 AM, CustomerSupport <sales@dfwfurniture.com> wrote:

It made their Facebook page too!  They have a pretty cool blog if you’re in the market for some new furniture.

Here’s the post in question… if you follow, them please “Like” it or leave a comment:  http://www.facebook.com/DFWFurniture/posts/110773852342054

Even better, Bethany’s on their email list, and this was in her inbox today:  http://us2.campaign-archive2.com/?u=66b31c192a78cb1962439b620&id=58954895aa&e=fed37b6f6a

Just part of the email…

…but we want to encourage  feedback and interaction from the community on Facebook.

Example : The recent story from Eric in Pittsburgh about his shopping experience at Value City Furniture vs. DFW Furniture in Pittsburgh.

We realize that advertising is always SUSPECT…But customer testimonials are PRICELESS… and credible.

How awesome is that?!  I’m famous!  Ha ha.

In all fairness, Value City did indeed reach out in the comments of the original blog, and as requested… I did follow-up:

From: Eric Carroll
To: jeremy.sipes@vcf.com
Sent: Mon, April 25, 2011
Subject: Blog about couch buyin experience…

Hello Mr. Snipes,

I’m responding to your comment on my blog.  I’m not sure what else you would need detail-wise, or any way of resolving anything.  Did you first read about my blog through your submission form?   I don’t really have any other details then what I expressed in my blog.  What else would you be looking for, exactly?

Thanks,
-Eric

.seitilibasid gninrael fo nuf ekam ot ynnuf ton yllaer s’tI

And, this was the response:

From: “Jeremy.Sipes@americansignature.com”
To: Eric Carroll
Sent: Tue, April 26, 2011
Subject: Re: Blog about couch buying experience…

I just wanted to make sure to reach out to you regarding your experience in the store. I apologize for your experience with one of our sales people. I will be in contact with store management in order to address your concerns. I am glad that you found furniture that you are happy with, it is just unfortunate that you were not able to so with our store.

If you need anything going forward, please don’t hesitate to contact me.

Thanks for your time

Jeremy Sipes
American Signature Inc.
Customer Service Coordinator
1-800-743-4577
1-614-449-4351

Again, there’s not too much to do at this point, is there?  Although, they did have some cool pop-bottle looking bar-stools there…

Heh.  Twitter is also a powerful tool:

http://twitter.com/#!/dfwfurniture/status/62486421889486848

http://twitter.com/#!/ValueCityFurn/status/62885704874721281

http://twitter.com/#!/ValueCityFurn/status/62885852690399234

Couches


Well, if you read about our couch buying experience and were at all curious, here are some crappy photos from my cell phone:

New Couch

Klaussner Couch

New Love Seat

Klaussner Love Seat

I like they stripey pillows on the love seat, they came with the set. I don’t think Bethany likes ’em though. We bought the pillows that are on the couch from Kohl’s, but they’re a pretty good match.

Adventures in Couch-Buying


So, the wife & I been saving to buy a new couch & loveseat for quite a while. We’ve been very casually looking at furniture stores since last October.  Retail sales people in general really bother me.  I tense up when they approach.  It’s impossible to walk into any furniture store & browse without a sales person being on you like white on rice.  I have an issue with the titles too.  They never call themselves sales people.  It’s always “associate” or “specialist” or “floor manager” or “Archduke of Ass-cushions”.  You’re there to sell furniture and make commission, not to help me with the interior design in my house or really even to sell me what fits my needs.  You want to up-sell as much as possible.  I know that, you know that… why can’t you admit that you know I know it?  Pardon me, I’m getting ahead of myself.

At Levin’s they weren’t interested in showing us anything other than the most expensive couches.  Once they got an idea of our budget, they weren’t interested.  Roomful Express was a veritable pressure cooker with a “buy it now because we’re going out of business” style sales pitch.  So, no warranty then?  Ikea is great, and we love the place for other reasons, but none of the couches that we saw on our last few trips fit our style and budget.  Big Lots had some affordable furniture, but the couch we had considered there only came in one awful orange-tinted brown… and it just brought poop to mind.

That brings us to the events of tonight.  We had passed by the DFW on Rte. 51 a week or so ago, but we decided to check it out.  We had looked at a few of their pieces online and were happy with the price & selection.  We decided to stop at Value City first since it was on the way & we were out looking.  The plan was to look around at Value City, check DFW in person, and if we needed to hit Value City on the way home, we could do that.  We could not have had two more divergent experiences.  I will mention sales persons’ names below, as it’s my intent to contact both Value City & DFW with the details of our experiences.  They both need to know what’s going on in their stores, good & bad.

As we were walking up to the door at Value City, we could see a young sales guy looking out the front window directly at us as if we couldn’t also see him.  He ran out of our view to his left, not unlike a puppy running to get some treats.  I said to Bethany “Wow, this guy’s going to be all over us before we’re even in the door.”  I was wrong.  Another sales guy was on us as soon as we were in the door.  He appeared like Batman disappears in the movies & cartoons.  I really have no idea where this guy came from.  He was just there.  I say “sales guy”, but he called himself a “floor designer”, commented on Bethany’s Penguins hoodie, and introduced himself as Bill.  Bill asked what we were looking for, we said couches, and he gave is a well-rehearsed (read: tired) spiel about how we were “here for two things; eye appeal and butt appeal”.  Things like “it’s got to be comfortable”, “sit on it, jump on it, relax”, “microfiber is just a fancy way of saying 100% polyester” were said.  Also, there were mentions of how their parent company owns Big Lots and DHL and a few other companies… which have absolutely no bearing on me buying furniture.  I’m not impressed with image.  Cheesy, but at that, he let us off to browse on our own.  We made our way up the first aisle, down the second, and were on the way up the third when Bill caught us again.  Along the way, we saw two couch/loveseat sets that we really considered purchasing.  We had our mind set on one because it was comfortable and within our budget and we were frankly just in the mood to finally purchase a couch this evening.  When Bill caught up to us the second time, we may have confused him, as we talked in passing to another family who had just walked in the front door.  Bill proceeded to introduce himself to us and give the same “eye appeal and rear appeal” into the “microfiber=polyester” speech that we had just heard less than ten minutes earlier.  As we were just into the third aisle, we were beginning to realize that most of this furniture was above our budget… so the plan was to walk through quickly.  Bill caught us by a rather ugly yet comfy reclining sofa that was ridiculously priced and begged us to sit in it.  We obliged.  Then Bill proceeded to tell is that we may recognize him from TV as he’s the “furniture doctor” (or something to that effect) on KDKA.  He also said that he sold this same couch to Tyler Kennedy & Max Talbot, then named some Steelers for good measure.  This is where my mind was made up that we wouldn’t be buying anything from Value City.  I don’t care who else has the same couch as me, and these local sports heroes will never be sitting on my couch… so it really is irrelevant.  Also… I know you shouldn’t judge a book by its cover, but just looking at us, he should have known that the couch in question was way out of our price range.  I would like to make it clear that the only reason that we didn’t buy a couch from Value City this evening is Bill Crewson.  I found him to be pretentious, pompous, and obnoxious.  We escaped Bill’s sales pitch of doom, and had a discussion around the first corner.  My wife agreed with my assessment and decided that worst-case scenario, we would come back & deal with a different sales associate because Bill was not getting a dime of commission from us.  We promptly headed to the door.  Bill again appeared out of nowhere and handed us a business card as we were on the way out the door, title being “Home Furnishing Consultant”.  Get your title/position straight, Bill.  Consistency is a good thing.  As soon as we got home, I fired up Firefox and Googled the bejesus out of Bill’s name on KDKA’s website.  I can find no mention of Bill by name or by “furniture doctor” or “couch doctor” or whatever he called himself (or anywhere else on the web).  If someone knows Tyler Kennedy or Max Talbot, tell them to call me to talk about their couches.

Next, we went to DFW.  The experience there was as refreshing as Value City was exasperating.  We weren’t immediately pounced upon when we walked in the door.  After we had made our was across the front of the store, we were casually approached by a Mr. Matt Walker.  He asked us what we wanted, and what our needs were.  He explained what they had, how the discounts worked if you bought outright vs. a payment plan, and set us free to roam around the store.  Still reeling from Value City, I thanked Matt for being the first sales person in a furniture store that wasn’t so far up my rear-end that they were looking out my mouth.  He laughed like he hears that a lot.  Bethany & I were able to take our time, look at the prices, sit on the couches… and we again found two sets that we liked and that fit our budget.  The one didn’t come in any different colors, so we happily picked the other, and we had to seek out Matt to let him know that we were ready to make a purchase.  To not be hovered over, or approached a second time with some sort of practiced sales pitch, or to not be only shown the most expensive pieces on the floor was a huge deal.  Happily, the set we wanted was well under budget at the advertised price.  Not only that, but we got a discount for paying for it all at once.  There was also another deeper discount because the floor model was the only one left.  We looked it over, were satisfied with the condition and quality and went with it.  We did purchase a reasonably priced protection plan for the cushions and there was a standard delivery fee… and we were still under the advertised price for the set.  I urge anyone in the Pittsburgh area looking for cheap quality furniture to seek out Matt Walker (Store Manager) at DFW on Rte. 51.  DFW should send all of their managers and sales persons to Matt to be trained.  They would be wise to pick up his tactics and demeanor.  The delivery is set for tomorrow, I’ll have to pop up a photo and let you know how that goes!