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Internet Netflix Ends Used DVD Business
Michael Barkoviak - November 5, 2008 6:54 AM
Print E-mail del.icio.us 28 comment(s) - last by bighairycamel.. on Nov 6 at 9:32 AM
Netflix will no longer sell used DVDs directly to the consumers

Netflix announced it will stop selling used DVDs directly to subscribers by the end of the month, although the company will likely sell used DVDs to wholesalers who will then sell the movies to consumers.

"As you know, our core business is delivering great movie rentals to you on DVD by mail and instantly to the computer and TV, so we've decided it makes sense for us to focus exclusively on that," said a blog recently posted on the Netflix web site.  "This means we will stop selling previously viewed DVDs through the Web site.  We're sorry for any inconvenience for those of you who regularly purchase DVDs at Netflix, but we’re excited about being able to spend the extra time focusing on continually improving our core rental business for you."

Comments on the Netflix blog have been rather critical of Netflix's decision, as several posters mentioned the ability to purchased used DVDs was the critical reason for joining the online movie rental business.

As Netflix continues to announce partnerships to stream content directly into the living room, the blog post clarifies unconfirmed rumors that Netflix is straying away from DVD rentals.

"On the contrary, we believe that DVDs will continue to be important for the next five to ten years at least, and are continually adding new DVD and Blu-ray discs to our catalog."

Regardless of what is publicly said to subscribers, the decision to stop selling rented DVDs is a small but critical shift away from DVD rentals towards digital streaming content.  The Netflix streaming service is available through TiVo, Roku, the Microsoft Xbox 360, and several Blu-ray players, with more announcements expected in the future.

Last week, Netflix's Watch Instantly will be available to Mac owners on Intel-based systems using the Microsoft Silverlight software.  The Watch Instantly feature is available to all Netflix monthly subscribers for free, excluding users who are on the lowest rental plan.  This is the first time Netflix has supported Mac owners, with an estimated 75 percent Mac subscribers owning Mac-powered PCs.

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Hmm, the link is still there...
By therealnickdanger on 11/5/2008 8:30:47 AM , Rating: 2
I just logged on to Netflix this morning and the "Used DVDs for $5.99" link was still at the top of the page...

Oh well, I'm just excited for November 19th! I can stream Netflix to my 360s!




RE: Hmm, the link is still there...
By SunAngel on 11/5/08, Rating: -1
RE: Hmm, the link is still there...
By Hiawa23 on 11/5/08, Rating: 0
By tallcool1 on 11/5/2008 12:25:50 PM , Rating: 2
What does having a DVD Burner have anything to do with it? Unless your admitting on this public thread to breaking the law and copying DVDs that you rent and return.

Go directly to jail, do not pass go, do not collect $200.


RE: Hmm, the link is still there...
By croc on 11/5/2008 5:31:39 PM , Rating: 2
Having purchased several used DVD's from a B&M store, I can understand Netflix's position. I get a failure rate of about 60% on the ones I purchased, (tested on four different players) and my local shop making the returns so difficult... I can appreciate their headache.


RE: Hmm, the link is still there...
By morose on 11/5/2008 10:19:20 AM , Rating: 5
The only loud thing on the 360 is it's optical drive. And considering that he was talking about streaming video and that the optical drive on the 360 doesn't spin unless you've got a disc in it, I'm not sure what point you're making. Sounds like sour grapes for no apparent reason to me.


RE: Hmm, the link is still there...
By The0ne on 11/5/2008 10:22:13 AM , Rating: 2
yea hehe pretty funny I thought.


RE: Hmm, the link is still there...
By therealnickdanger on 11/5/2008 11:10:19 AM , Rating: 2
As someone already stated, the 360 is only loud when fetching data from a disc, so it will be quiet when streaming videos. Second, my 360 is enclosed in a modestly sound-proof enclosure with my other electronics (ventilated, of course). No worries.


By therealnickdanger on 11/5/2008 11:11:36 AM , Rating: 2
LOL - also, it's a tad hard to hear it anyway with my system cranked to +11dB... :P


By feraltoad on 11/5/2008 5:29:21 PM , Rating: 2
How do you get those IR signals into the cabinet, Nick? It have a glass panel? IR Blasters? Also, what kind of ventilation? Any Pics on a photo site? Just interested in the cabinet's setup. I'm going to update my dinosaur receiver one of these days and any replacements will likely be to tall for the small TV stand I have now. The sound is still adequate, I just would like to get something with dual zone and HDMI. The other night I was watching a movie and I thought, "What the hell? That's dripping water over there! Did I spill something on the counter? Oh, that's the movie. Doh!"


By TreeDude62 on 11/5/2008 1:33:48 PM , Rating: 2
Mine is very quiet when no disc is being read. It is the DVD drive which makes all the noise. I find it is loudest when playing games like GTA4 which read the disc constantly. DVDs are a little quieter.

Streaming content doesn't use the disc drive, so I doubt it will ruin the experience. Nice try though.


By bighairycamel on 11/5/2008 11:11:47 AM , Rating: 2
According to the email I received from them, they will be stopping on Nov 30th. So you still have a few weeks to buy cheap used DVDs.


RE: Hmm, the link is still there...
By techone on 11/5/2008 3:46:33 PM , Rating: 2
I was streaming Ghost Rider last night on my 17" LCD screen that is hooked up to DVI and it was really blurry. I don't know what type of encoding they use but sometimes it's really bad. People tout the 360 and thier LCD/Plasma tv cuz it does 1080i and I doubt that the streamed movies will look very good... could be wrong but thats just my take. For all those who know I do plan on testing this on my 32" Trinitron TV come time it goes live.


By twhittet on 11/5/2008 6:19:22 PM , Rating: 2
The streaming quality differs depending on your internet speed, and is tiered into three levels. The lowest "Basic" quality is terrible. I should easily qualify for the medium level, but lately it has kicked me to Basic quality for no fault of mine, making a movie unbearably blurry.

They have a tool on the Watch Instantly page that tests your speed and tells you what quality they're going to allow you to view it in. I've heard many other complaints of users with 8mb download not even qualifying for the "High" quality.


By bighairycamel on 11/6/2008 9:32:40 AM , Rating: 2
I always get the highest quality of stream through my htpc, but it's still a little blurry too. The problem is apparently their embedded Windows Media Player isn't affected by any sort of codec or filter.

I use ffdshow among other things and it makes every other video playback upscale to 720p so it looks great, but it doesn't seem to make the slightest difference on the Netflix stream... it always looks the same, but I just live with it.


Failed returns?
By vcolon on 11/5/2008 8:37:45 AM , Rating: 2
What's to say I don't return the rented dvd? Are they going to charge me full price for it?




RE: Failed returns?
By xsilver on 11/5/2008 9:48:11 AM , Rating: 2
full price? they could charge you MORE than full price if the wanted to tack on administration/handling fees etc.

There's only money to be made in this sector.

I think the decision however to stop selling used dvd's is probably a good one as the customers that buy used dvd's cheap are probably known in the industry as "cheap ass customers" and while having their sales is fine, netflix probably dont want to attract more of these customers. They'd rather the customers that are willing to pay $5 to stream a movie 3 times a week where the overhead cost to netflix might only be $1 or less.


RE: Failed returns?
By The0ne on 11/5/2008 10:27:48 AM , Rating: 3
Cheap-ass is good and as with the other poster above us, copying the rented DVD. I'm pretty sure he doesn't think it's stealing, as usual with most people stealing. Maybe, just maybe it's one of the reasons Netflix is pulling out due to poorer than expected sales of used DVD :)

I'm out of both Netflix and Blockbuster until I can find more movies to watch lol. Building up my queue is nice :)

With more and more companies putting caps on your internet usage I'm not entirely sure this streaming business is going to be effective at all, let alone progress. I wouldn't mind streaming so much if the selection broadens but I already know Roadrunner will kill my connection for P2P or streaming. So there's really no point for me to ever stream at all.


RE: Failed returns?
By tallcool1 on 11/5/2008 12:31:21 PM , Rating: 2
For those of us (or our kids) that like watching a movie more than once, streaming a movie for a $5 limited showing, seems like a waste when for about that same price or a few dollars more you can own a legal hard copy of the movie and watch it anytime, anywhere, you want...


RE: Failed returns?
By Siki on 11/5/2008 2:11:45 PM , Rating: 2
Copying a rented DVD isn't theft, it's copyright infringement. Get it straight!


RE: Failed returns?
By sprockkets on 11/5/2008 9:50:07 AM , Rating: 2
They understand that, and they don't charge you for it. Of course, if you make a habit of saying they are lost in the mail, then they like any other person will be suspicious of you.


They sell used DVDs?
By Alexstarfire on 11/5/2008 8:24:20 AM , Rating: 3
I didn't even know they sold DVDs period. I wonder who these "people" are that joined because they could buy used DVDs from them. I personally joined because I could rent DVDs, and I always figured that most people joined for that reason.

Anyways, if I want used DVDs I can go down to my local video store and get 2 for like $10.99 or something. It's buy one get one free, or buy one get one half off, I don't remember which. They've been doing that for a while though.




RE: They sell used DVDs?
By Mitch101 on 11/5/2008 8:58:58 AM , Rating: 2
For DVD's I cant see it either with local stores having $4.00-$7.99 sales for New discs.

On Gamefly though I can say sometimes its a bargain. Prices fall pretty fast even on new releases.


Wait... What?
By Mr Perfect on 11/5/2008 12:59:57 PM , Rating: 1
"with an estimated 75 percent Mac subscribers owning Mac-powered PCs."

How can you be a Mac subscriber if you don't own a Mac?




RE: Wait... What?
By twhittet on 11/5/2008 6:09:28 PM , Rating: 2
That one got me too. I reread it, thinking maybe he was quoting a "Mac" Magazine subscribers or something....but alas, I'm still confused.


RE: Wait... What?
By Guuts on 11/5/2008 6:54:01 PM , Rating: 2
I think he meant "...owning Intel-powered Macs."


simple cost cutting measure
By kattanna on 11/5/2008 10:31:21 AM , Rating: 2
instead of selling individually each used DVD, they instead sell a lot in bulk to a wholesaler, sounds smart. cuts down on labor and postage costs.

that then allows them to focus on what they do best, rent DVD's.




By Guttersnipe on 11/5/2008 5:47:29 PM , Rating: 2
maybe i'm thick, but i've been a subscriber for years and didn't realize they sold dvds.
not that i would buy them, i rent..and the point of using netflix is to get rentals with as little interaction/time waste as possible. so i guess i don't linger on the site any longer than necessary.
so meh....no loss.




"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes











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