Netflix Is Abandoning DVDs

[Barefootsies]

More death to the DVD as some discussed last week.

When Netflix started up more than 10 years ago, its sales pitch was pretty simple: Hey, subscribe to us, and we'll mail you DVDs that you can then mail back to us without worrying about any late fees. But as the rental market moves toward online and on-demand models, Netflix's iconic red envelopes may eventually become as antiquated as VHS tapes. Beefing up their streaming business, Netflix has predicted that in about two years their economics will be geared more toward their "Watch Instantly" service than through physical discs. For that to happen, Netflix will have to nudge their DVD-loyal customers to the new platform. And on Monday, the company learned just how hard that may be.

In a seemingly innocent 109-word blog post, Netflix director of product management Jamie Odell announced, "We're removing the 'Add to DVD Queue' option from streaming devices," suggesting that it was being done so that the company "can concentrate on offering you the titles that are available to watch instantly." Granted, the Netflix website still allows DVD queue updating, but this post, dropped on the morning of Martin Luther King, Jr. Day, created an immediate firestorm of comments -- most of them very, very angry.

"Clearly Netflix wants to send less discs through the mail, and therefore wants to make it more difficult for the user to add to their queue in furtherance of that," wrote "Eldendor." "Horrible idea!" wrote "usrbingeek." "Especially when there are still few titles available for streaming and the titles that you do have, seem to have very narrow license windows." On and on came the complaints, with most responders saying essentially (1) I like having access to DVDs even if I use a PS3 or mobile phone to stream movies on Netflix; and (2) there aren't enough good titles available on "Watch Instantly." "I think this is a totally foolish move on your part. I like to be able to add movies to my DVD queue from my iPhone," commented "b.dsign." "[I]f this means that netflix is going to add more movies to watch instantly i support the change," "Beto" wrote, "but if they are not, then it's just a bad idea."

As of yet Netflix hasn't released any response, which, really, is their response. Whether customers like or not, Netflix knows that the future is moving away from physical discs and toward instant access. And, really, none of us who use Netflix should be surprised: Back in November the company announced that they were offering a new lower subscription rate for streaming-only customers while increasing the rate for people who still wanted DVDs. Right now, if you want DVDs from Netflix, the company is less than thrilled with you: They need you to get used to the idea of streaming films and TV shows so that you'll drop the physical disc habit: a craving, ironically, that they themselves created thanks to the ease of their iconic red envelopes.

But while Netflix is slowly discouraging the continued interest in DVDs, they face a different challenge even if their business model transformation succeeds. As Slate reported, if Netflix's streaming business takes off the way they think it will, it could prove a serious drain on America's broadband capacity, which is far less nimble than other countries'. Netflix is angering customers right now because the company wants to do away with DVDs: We don't even want to think of a future where Netflix angers the entire Internet community because too many people are streaming old episodes of "Friends" at the same time.

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[Harmon]

I have Netflix, strictly streaming for $7.99/month. I think that will hurt them dramatically unless they strike up some deals with the movie studios to enable streaming of first rate films, the newer stuff that they only offer via DVD.

Another downside is the job loss that will most likely be incurred, not to mention the amount of revenue the government will lose on the postage.

[Serge Litehead]

netflix has great future ahead of them - they can probably bring over current feature films for extra premiums or ppv. they also have potential to replace cable tv with airing live shows/channels on demand - more advertising revenue and or channel subscriptions. fuck the dvds )

[DamianJ]

adapt or die.

blockbuster = dead
netflix = growing

[PR_Glen]

rogers dvd rental stores closing down left and right here in canada...

[Sly]

I rent all of my movies online, usually Amazon. As all of the "older" TVs phase out over the next 10 years and "smart" TVs phase in, a lot of this stuff will no longer be needed. Everything will be online.

A big issue with the Netflix switch is the strain it could cause on the national broadband network. We need to get building that out ASAP or growth over the next decade could be really hampered by the onslaught of Internet powered TVs and further growth of online video. Everybody watches YouTube, even my 75-year-old grandmother... wait until we have one billion smart TVs streaming full length videos and TV shows every night.

[cherrylula]

Yes please. I am sooooo over these fucking plastic discs. They get all scratched and then they don't work. I fear Elmo in Grouchland might not play everytime I go to put it on. Streaming is better!

[cherrylula]

Originally Posted by Sly

I rent all of my movies online, usually Amazon. As all of the "older" TVs phase out over the next 10 years and "smart" TVs phase in, a lot of this stuff will no longer be needed. Everything will be online.

A big issue with the Netflix switch is the strain it could cause on the national broadband network. We need to get building that out ASAP or growth over the next decade could be really hampered by the onslaught of Internet powered TVs and further growth of online video. Everybody watches YouTube, even my 75-year-old grandmother... wait until we have one billion smart TVs streaming full length videos and TV shows every night.

If it's needed to make money, people are working on it.

I can't wait to have a streaming tv. I'll take all my dvd players out back and take a hammer to them!!!

[GatorB]

Originally Posted by Barefootsies

More death to the DVD as some discussed last week.



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that's BS Netflix is NOT abandoning DVDs. Not for several years at least.

[stephane76]

I hope not, the Streaming selection is shitty compared to the DVD ones...

[Serge Litehead]

i won't be surprised to see them starting free service in the future with ads ingested every 10-15min throughout a movie like it's done on many tv channels

the network congestion is a problem at least here on the east side, i'm noticing significant drop of speed daily between 6-10pm with my cable connection

[Barefootsies]

Originally Posted by cherrylula

I can't wait to have a streaming tv. I'll take all my dvd players out back and take a hammer to them!!!

Damn foo! Work out dat anger.

[candyflip]

This was always their plan. This company is called NETflix remember

[Pipecrew]

Originally Posted by stephane76

I hope not, the Streaming selection is shitty compared to the DVD ones...

what are you talking about!! new releases were just added today on streaming like home alone 2 and look who's talking now

[famous]

I have not been to a blockbuster in years. I use Vudu. Movies are released to stream same day (most the time) to stream. You cant beat it. 3.99 for SD and 5.99 for HD. Hell even alot of the new ones you can buy for 9.99 in SD same day of release to stream anytime you want. Fuck getting a disk. Adopt or die.

[cherrylula]

Originally Posted by candyflip

This was always their plan. This company is called NETflix remember

shhh no logic you'll throw off the discussion!

[woj]

10 years ago it made sense to ship, now a days it's pointless... why are studio's bitching about it anyway? if someone wants to steal the content, they can just as easily rip the dvd with some free software..

[ScriptWorkz]

If they increased the streaming selection / this move lets them offer newer stuff up instantly i'd be all for it. The bandwidth issues do concern me a little bit, but like everyones saying it's adapt or die. I rarely get dvd's anymore, so 99% of the time i'm just watching streaming stuff from netflix anyways, then again i don't use netflix to watch the really new stuff so it hasn't really been a problem.

[bronco67]

I don't think anyone realizes that we're no where close to having the appropriate bandwidth to support Instant and OnDemand viewing exclusively.

I have broadband cable, and my experience with internet movie watching, whether its Amazon or Netflix or PS3, is spotty at best. Amazon especially has crappy compression, and while might be OK for little character driven indie flicks and documentaries, I want to see my special effects blockbusters and action movies in the highest quality possible, with deep blacks, theater sound and crystal clear picture. BluRay will give me that, and Netflix is not even close to be able deliver that to me instantly. The bandwidth is not there.

I have to wait 4 minutes just to watch a stupid YouTube video of some dude getting kicked in the nuts. How am I supposed to expect a Blu Ray movie, with a perfect digital transfer to download, when I want it?

[Harmon]

Originally Posted by bronco67

I have to wait 4 minutes just to watch a stupid YouTube video of someone dude getting kicked in the nuts.

So true, so true

[cherrylula]

Let me mention too I am tired of getting scratched, broken discs in the mail that don't work. I've had discs not get here, not get back, lost in mail etc. I'm sure they take a loss on that part, too.

I have no problem with bandwidth. Some of you must live in some busy areas! Not everyone does...

[Sly]

Originally Posted by bronco67

I have to wait 4 minutes just to watch a stupid YouTube video of someone's home video of getting kicked in the nuts. How am I supposed to expect a Blu Ray movie, with a perfect digital transfer to download?

What kind of shit connection do you have?

Just about everything I stream is instant, even high quality videos and TV shows. But as you mentioned, a lot of the country has bad connections, so it's not feasible to totally switch over yet. I think the government is still trying to map out a way to increase broadband throughout the country... by the time they are finished we'll be on to the next thing. Would be great if the utilities, or the cable companies, or whoever, would get involved.

[bronco67]

Originally Posted by Sly

What kind of shit connection do you have?

Just about everything I stream is instant, even high quality videos and TV shows. But as you mentioned, a lot of the country has bad connections, so it's not feasible to totally switch over yet. I think the government is still trying to map out a way to increase broadband throughout the country... by the time they are finished we'll be on to the next thing. Would be great if the utilities, or the cable companies, or whoever, would get involved.

My throughput varies, but it can be anywhere from 10 mbps per second, all the way down to 2 on a bad day. I'm in the NY area -- hardly the boondocks. Like I said, streaming does not look anything like a BluRay. I think being in first tier area makes your connection worse, because of more plugged up traffic. If I lived somewhere like Raleigh, NC for instance, I'd probably be able to download 1 GB per minute.

[Sly]

Originally Posted by bronco67

My throughput varies, but it can be anywhere from 10 mbps per second, all the way down to 2 on a bad day. I'm in the NY area -- hardly the boondocks. Like I said, streaming does not look anything like a BluRay. I think being in first tier area makes your connection worse, because of more plugged up traffic. If I lived somewhere like Raleigh, NC for instance, I'd probably be able to download 1 GB per minute.

Yeh your connection sucks, has to be the population? I had a similar issue when I was living in San Diego, now that I live in a small city my connection kills. So maybe it's like this... middle sized cities are good, big cities and the boonies are ass, ha.

[stephane76]

Originally Posted by Pipecrew

what are you talking about!! new releases were just added today on streaming like home alone 2 and look who's talking now

on the good side, i get perfect HD res thru my Xbox on my LCD

[tranza]

That's pretty amazing.

[Jim_Gunn]

Fuck paying extra to watch movies. I don't use Netflix, rent DVDs locally or any other pay per movie or showing service either online or offline. I only watch movies as part of my DirecTV subscription that I already pay for with HBO, Showtime, Encore & Starz. I just record them to my HD DVR and watch when I want.

[Juicy D. Links]

Originally Posted by Pipecrew

what are you talking about!! new releases were just added today on streaming like home alone 2 and look who's talking now

[GTS Mark]

Netflix is absolutely raping and pillaging the Canadian market now. Everyone i know has a netflix online subscription and is loving it. Once they get their content library up to date they will put the final nail in Blockbuster's coffin.

A friend of mine who is a manager of a couple of local blockbusters said the only thing really keeping them going is their game rental business.

[Agent 488]

torrents are free with a better selection.

[thefirstlady]

does blockbuster have an exclusive right to get stuff "28 days" before? If so, does anyone know when that expires? Cuz thats really the only thing they have on netflix

[CaptainHowdy]

Adraco OR Die...

[96ukssob]

wow that is pretty shocking. I know the cost is probably higher for DVD rentals, but geez that kinda blows.

a lot of TV shows are only on DVD and some old school movies. however, when i rent anything new, if its not in BD they i dont bother.

[NaughtyVisions]

Originally Posted by Pipecrew

what are you talking about!! new releases were just added today on streaming like home alone 2 and look who's talking now

They made a Home Alone 2 ?!??!?!?!

[icymelon]

problem with this theory is that if you want a bluray is that going to stream? I have watched a few movie streams on netflix that said hd and it looked great. But its not a bluray.

[Harmon]

Originally Posted by NaughtyVisions

They made a Home Alone 2 ?!??!?!?!

No shit, right?

[SykkBoy]

I have their 2 disc at a time subscription and use it for newer releases. I use the wii to stream quite a bit and watch shorter movies and specials on my iphone, but that's very rare because I just can't stand watching a movie on such a small screen.

I'm a movie geek and love the selection that netflix has, but would love it if they had newer titles to stream and it was better quality. Like mentioned above, I need my big explosion-y action movies in hi-def with surround sound, etc.

[HAPPYPEEKERS]

Originally Posted by Harmon

I have Netflix, strictly streaming for $7.99/month. I think that will hurt them dramatically unless they strike up some deals with the movie studios to enable streaming of first rate films, the newer stuff that they only offer via DVD.

Another downside is the job loss that will most likely be incurred, not to mention the amount of revenue the government will lose on the postage.

I have netflix streaming for $7.99 a month as well. love it~

[kane]

Originally Posted by thefirstlady

does blockbuster have an exclusive right to get stuff "28 days" before? If so, does anyone know when that expires? Cuz thats really the only thing they have on netflix

The way I understand it Blockbuster gets the movies at their normal release time and with some studios Netflix has to wait because of a deal they have made. This deal allows them to get more streaming content fro that studio, but they have to wait an extra month to get the new release movies.

[jesse_adultdatingdollars]

Netflix streaming sucks balls. Grainy

[V_RocKs]

Movies are a time waster.

[GTS Mark]

Originally Posted by NaughtyVisions

They made a Home Alone 2 ?!??!?!?!

There is actually a home alone 3 as well



I have kids... So i unfortunately know these things

[NaughtyVisions]

Originally Posted by GTS Mark

There is actually a home alone 3 as well



I have kids... So i unfortunately know these things

Yeah, I know. There is a part 4 as well. Made for TV, and seems like a rehash of the original.




I was playing up the "Home Alone 2 added as a new release to streaming" comment with my faux ignorance on the subject. I have a kid as well, though I think it was my wife who forced both my son and I to watch all 4 installments.

[marketsmart]

Originally Posted by bronco67

I don't think anyone realizes that we're no where close to having the appropriate bandwidth to support Instant and OnDemand viewing exclusively.

I have broadband cable, and my experience with internet movie watching, whether its Amazon or Netflix or PS3, is spotty at best. Amazon especially has crappy compression, and while might be OK for little character driven indie flicks and documentaries, I want to see my special effects blockbusters and action movies in the highest quality possible, with deep blacks, theater sound and crystal clear picture. BluRay will give me that, and Netflix is not even close to be able deliver that to me instantly. The bandwidth is not there.

I have to wait 4 minutes just to watch a stupid YouTube video of some dude getting kicked in the nuts. How am I supposed to expect a Blu Ray movie, with a perfect digital transfer to download, when I want it?

what do you live in some 3rd world shithole on dial up...

i use the wireless roku player and that shit rolls with no glitches...








.

[JustDaveXxx]

Originally Posted by thefirstlady

does blockbuster have an exclusive right to get stuff "28 days" before? If so, does anyone know when that expires? Cuz thats really the only thing they have on netflix

28 days is a definite plus and the user interface is great. You can choose a movie when it is in the theaters and when it comes out on blue ray, it gets dropped in your Que and sent out.


I do the Blockbuster 3 discs at a time. All Blue rays, with 5 in store trade ins per month. $17 is nothing and the 5 in store trade ins rock.


Streaming is cool, but Blue Rays are 30 Gig disks and i don't see technology being able to stream 30 gigs anytime soon.


I was a NetFlix fan for a long time, but been doing the Blockbuster thing for 6 months and am really happy with it. As it stands now, it Blockbuster rips Netflix on all aspects.

User interface, 28 days sooner, blue rays at no extra cost, and 5 in store trade ins at no additional cost.

[bronco67]

Originally Posted by marketsmart

what do you live in some 3rd world shithole on dial up...










.

Just the opposite.... tri state area close to NYC. That's why my connection is shit. Too many internet users in my region.

[bronco67]

Originally Posted by JustDaveXxx

28 days is a definite plus and the user interface is great. You can choose a movie when it is in the theaters and when it comes out on blue ray, it gets dropped in your Que and sent out.


I do the Blockbuster 3 discs at a time. All Blue rays, with 5 in store trade ins per month. $17 is nothing and the 5 in store trade ins rock.


Streaming is cool, but Blue Rays are 30 Gig disks and i don't see technology being able to stream 30 gigs anytime soon.


I was a NetFlix fan for a long time, but been doing the Blockbuster thing for 6 months and am really happy with it. As it stands now, it Blockbuster rips Netflix on all aspects.

User interface, 28 days sooner, blue rays at no extra cost, and 5 in store trade ins at no additional cost.

Interesting. I might look into that. I just saw that its on my Vizio TV internet apps. of course, when I tried to use it, I got the message "You need a broadband connection to use this service." -- and I do have broadband...it just sucks ass.

[Zebra]

75% of the movies I search for on Netflix are DVD only. I mainly have it for the kids, but I did spend Sunday watching 8 hours of 80's movies that I don't have on DVD already. There is a Redbox 90 seconds away if I REALLY want to watch something new.

[mynameisjim]

The bandwidth issue is the real problem, and I don't mean your own personal bandwidth. I mean the overall national network.

After 6 p.m. over 20 percent of the national bandwidth in this country is being used by Netflix. The infrastructure in this country sucks for broadband and no company is investing in hard line broadband in any significant way because there is no growth and no real money in it. The money has all been in wireless and that's where all the improvements have been.

[JustDaveXxx]

Originally Posted by bronco67

Interesting. I might look into that. I just saw that its on my Vizio TV internet apps. of course, when I tried to use it, I got the message "You need a broadband connection to use this service." -- and I do have broadband...it just sucks ass.

I am a shooter and deal with different qualities of video and compressions all day long depending on my project. Streaming blue ray quality is not going to happen with in the next 8 years. If they try to stream Blue rays its going to have to buffer for 2 days. I prefer to get the Blue ray disc in the mail in one day.


Blue rays smoke DVD's in quality. Keep in mind 30 gig blue ray disk versus a 4.5 gig DVD. More information=higher quality picture. Its that simple.




All bullshit aside, as of now Blockbuster has the best options for the price when it comes to renting, by mail, blue rays.