Netflix must be internally structured like this: Innovative technical people on one side, and stupid business people on the other. I have been using Netflix for a while now and I love it. Their core service is awesome: delivery is quick and selection is huge. Netflix doesn't stop there though. In today's world, a leader today can be non-existent tomorrow. The subscription movie-rental industry is being flooded by Blockbuster and others who provide the same service, so it takes some fighting to differentiate yourself, and Netflix has always led the way. Online community features, Instant Watch, and an open API are few examples of how hey keep innovating when they could easily just stay put.
Sounds perfect right? It is, except for when they do something stupid. This usually involves removing features or charging extra for them. Back in June, they announced they were going to remove sub-profiles, without providing any alternative or way to backup your data. This was met with huge backlash from the passionate community, and Netflix caved and let us keep our profiles. Today there was a new shocking announcement: they are going to start charging extra for BluRay.
Currently BluRay discs are included in your subscription plan. You just tell them you want BluRays, then you get BluRay disc instead of DVD if it is available, which it usually is not. I think I have gotten maybe 3 or 4 BluRay discs ever, and there are only two in my queue right now. Now they want to charge an extra dollar a month for the privilege to maybe get a BluRay disc? Their reasoning for charging extra is that BluRay discs costs more. That may be true, but DVDs prices are not uniform either. New releases are much more expensive than movies found in the bargain bin. Even if BluRay was way more expensive (which it isn't, there is only a $2 difference for Wall-E Special Edition at Walmart), it is not worth the negative publicity and disappointed users.
As if they didn't learn anything from the sub-profile debacle, they are again pulling the rug out from under our feet. Do not unexpectedly take away existing features or start charging extra for them. You will only piss off your cutting-edge users, and these are the people you want on your side. This not only impacts BluRay users, but it also instills more fear and doubt in your other customers. They will now worry that you will start charging for InstantWatch after investing in a Roku box. They will now look into an alternative service, like Blockbuster Online , who doesn't charge extra for BluRay. IMO, doing anything that causes your loyal customers to consider the competition is a bad move.
Netflix should look at how most startup websites handle things. They offer a free beta service, then when out of beta, they charge for new features. The core service remains free for those users, because if they suddenly were charged for it, they would probably leave and never come back. I will be disabling my BluRay preference, at least until a majority of movies in my queue have a BluRay option available. If Blockbuster ever provides an API, I am jumping ship.
