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Internet Netflix Reaches 10 Million Subscriber Mark
Michael Barkoviak - February 12, 2009 2:31 PM
Print 27 comment(s) - last by Cypherdude1.. on Feb 16 at 9:00 AM
Netflix has eclipsed 10 million total subscribers

Netflix proudly issued a press release announcing the online movie rental company now has more than 10 million subscribers.

"Ten million subscribers is a symbolic but meaningful achievement for our company," said Reed Hastings, Netflix co-founder and CEO. "From a subscriber standpoint, Netflix is singularly focused on making movie enjoyment easy, and we'll strive to deliver on that promise in added and improved ways in the years to come."

The company has added 600,000 streaming subscribers to its service since the start of 2009, with that number steadily growing.  Subscribers now have the ability to watch streaming content directly to their TV or on the Internet, which offers greater flexibility.

Netflix also has agreements so its streaming service is available through the Microsoft Xbox 360 game console, Roku Netflix player, and several standalone Blu-ray players, including products from LG and Samsung.  More than one million Xbox 360 owners have installed the Netflix application, and both Microsoft and Netflix expect that number to increase.

Even though many people are cutting back on entertainment and luxury spending, that means they're staying at home watching movies rather than going out and seeing movies in theaters.  Netflix has shown to be rather recession proof, and expects to continue to succeed despite the struggling global economy.

In the future, Netflix hopes to end its Q1 fiscal quarter with 10.1 million to 10.3 million subscribers.  In an ideal situation, the company will have between 10.6 million and 11.3 million subscribers by the end of the year.

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I like netflix, I should make a new account...
By A Stoner on 2/12/2009 6:04:18 PM , Rating: 1
I used to use netflix, but I am a lazy person by nature and never got around to sending in my disks so I would get my next set. Once I lost the little envelope and it took them 2 months to send me a new one. The time before that when I lost the envelope or maybe I just put the DVD in backwards or something they refused to accept the fact that I sent the damn DVD back for almost three weeks, eventually they found it and sent me my next movie. But overall, it is a great service. Now that the election is over, I really do not need the current events version of watching TV, maybe it is time for me to be number 10,000,001?




RE: I like netflix, I should make a new account...
By stubeck on 2/12/2009 6:22:37 PM , Rating: 2
Knowing how they work, the post office messed up and didn't deliver it for that long, it wasn't Netflix's fault for not finding the disc.


By Seemonkeyscanfly on 2/13/2009 10:38:22 AM , Rating: 2
Knowing how the post office works (from the inside - not guessing as an outside person), No it probably was not the Post Office fault. Every business on this planet can take lesson on efficiency from the US post office. Sure, errors happen, but when you do a total count of errors to volume of mail moved, they are way below 1% error ratio... probably around 1 error in every 1,000 piece.

Most like either netflix made an error or our friend here did not seal the envelope correctly and the DVD fell out somewhere between his house and netfix. Thus, a claim had to be filed and that takes a bit of time. Once completed Netfix sent him his next movie pick.


By masher2 (blog) on 2/13/2009 11:07:19 AM , Rating: 2
quote:
Sure, errors happen, but when you do a total count of errors to volume of mail moved, they are way below 1% error ratio
I remember reading a few years back that the USPS raised its delivery standard time to 5 business days for First Class mail, because most offices were hitting that 80% of the time. Even with the new standard, I believe most offices still only average about 90% I believe.

I found this press release over a VA USPS district crowing over their 88% delivery rate for 3-day mail service...which is apparently a significant improvement for them:

http://www.usps.com/communications/newsroom/localn...


By Seemonkeyscanfly on 2/13/2009 11:42:47 AM , Rating: 2
That of course is on delivery speed... This still always amazes me to send a first class letter from NY to CA in two days for only 42 cents and hit this time frame 93% of the time. Errors of course would be miss deliveries or improperly scanned parcels.

Like anywhere, you will have good, not so good employees, and then a few employees who just do not even try. For those of you who have a postal carrier who does not even try I’m sorry to hear that, however, even the not so good employees bust their butt to try their best to do a good and accurate job. It’s a very mundane job to sort mail for 400 to 700 people then delivery it everyday and be expect to be perfect from all those people – even if you are just subbing in for the regular carrier.


By masher2 (blog) on 2/13/2009 12:08:16 PM , Rating: 2
I don't want to rub the USPS too hard, but the context of the story was that the standard delivery time for NY-Boston First Class mail is now *slower* than what it was for the year 1792.


By Seemonkeyscanfly on 2/13/2009 1:19:52 PM , Rating: 2
slower not full of errors... and let explain slower, the goal is 2 days. So, if slow is 3 to 4 days, it's still fast then most services at that price range (meaning you are not paying for overnight or second day service). Also, must keep in mind, the volume difference between 1792 and now... Just a wee bit more now a days. :)
I would not take what you saying as “rubbing” the USPS… Just statements of fact, I just like people to realize how much the post office does everyday. Most carriers sort and deliver 500 people mail everyday. That’s about 1,200 lbs of mail. If you really understand what they do, you’d be amazed that there is not more problems….


By Cypherdude1 on 2/16/2009 4:35:29 AM , Rating: 2
I first started using BlockBuster with its optional 5 disc brick & mortar trade-in plan. During those 2 years, I received at least 5 cracked discs through USPS.

With Netflix over the last 8 months, I have not received any cracked discs and had 1 delayed. Netflix's turnaround time is always 1 day faster than Blockbuster. They usually send on the same day they check in a previous disc, unlike BB which for some reason waits one day.

I prefer using Netflix's less expensive strictly mail-in plan because it's more convenient and they have better selection than brick & mortar.


By Cypherdude1 on 2/16/2009 9:00:15 AM , Rating: 2
I also want to add, Netflix is very fast. So much so, I can't understand how they do it. If I drop in the mail on early Monday morning, they send on Tuesday and I get the next selections on Wednesday.


By bldckstark on 2/13/2009 4:52:33 PM , Rating: 2
Your indicator of 1 in 1000 is an error rate of 1000 per million. That is a rate 28.57 times worse than a lot of companies that don't get to set their own prices.

The company I work for gets a $0.58 rate for overnight delivery of letter size envelopes from Fed Ex. Can't do that with the USPS.

FedEx, UPS, and Airborne Express are studies in efficiency with accuracy rates many times that of the USPS.


By Seemonkeyscanfly on 2/13/2009 5:57:27 PM , Rating: 2
I'm sorry but you have to be full of beans...

First who does not set their rate... All the companies you listed set their rates. Second most, near by mail a state or two away will be overnight (unless you drop off late at night) for only 42 cents. Third, worked with FedEx for over a decade and multiple companies that work with FedEx, nothing is cheaper then $4.00, so I like to see evidence of your 58 cent claim. Fourth, USPS ends up delivering a lot of FedEx and UPS packages because USPS is move efficient at delivering to all location in the US everyday. Fifth, I doubt any delivery company comes close to delivering 10 percent of what the post office see.


By onelittleindian on 2/13/2009 10:49:30 PM , Rating: 2
Ok Cliff Clavin, I don't know where you get your statistics from, but my own mail carrier accidentally gives me my neighbors mail at least 10-15 times a year. Not a single piece either, but the whole day's delivery. I never report it and I suspect 90% of other people never do either.

I only mail less than 100 letters a year myself, but at least 2-3 of them vanish mysteriously into thin air. I mailed my aunt a valentine once, and it took 3 weeks to arrive, even though it was only about 50 miles away.


By Oregonian2 on 2/13/2009 4:06:55 AM , Rating: 3
If you want extra envelopes, return two disks in a single envelope (save them some postage while you're at it) and keep the extra return envelope. I've probably at least fifty spares (and throw away the ones addressed to distant Netflix centers).

Another purpose of doing so is so that when they send you disks from a distant post office you can return them to your local one (hence use the spares addressed to the local one). This gets it to them quicker and will get them sending you the next one faster.


RE: I like netflix, I should make a new account...
By porkpie on 2/13/2009 10:13:22 AM , Rating: 2
With tricks like that, I wouldn't be surprised if some poor inventory manager at Netflix shows up at your door one day with a baseball bat, black ski mask, and a large bucket of hog lard.


By Oregonian2 on 2/15/2009 10:29:17 PM , Rating: 2
Why is that? Because I saved them so much money on mailing expenses that messes up their profit plans by making them do excessively well?


By Oregonian2 on 2/15/2009 10:30:14 PM , Rating: 2
P.S. - Netflix's instructions say that if you lose an envelope it's fine to put two in a single envelope. It's their instructions!


RE: I like netflix, I should make a new account...
By nafhan on 2/13/2009 8:52:24 AM , Rating: 2
I usually have a 3 day turn around time. Day 1, put it in the box. Day 3, new movie!
Also, I was really bad at returning movies to the video store, and would always get charged double for being late. So, at this point I'm watching 4 - 8 movies a month for 13.99 instead of watching 2 - 3 movies a month for 20 - 30 dollars a month.


By nafhan on 2/13/2009 8:56:38 AM , Rating: 2
Plus whenever I used to go to the video store, they were out of the movie I wanted to see half the time, and the selection sucked.


application for Wii?
By albundy2 on 2/12/2009 3:57:20 PM , Rating: 2
when will someone make an application for the Wii?

i already stream on my pc's. it would be nice to just use the wii for my main tv.




RE: application for Wii?
By amanojaku on 2/12/2009 4:20:36 PM , Rating: 3
I own a Wii and I think that idea is a waste on the current hardware (480i/480p.) I'm not confident that the Wii will retain the quality of even a stream. On the other hand, the rumored HD Wii would be a great candidate for that app. Or you can just buy a $30 video card with VGA, DVI, or HDMI and hook your PC up to the TV like me.


RE: application for Wii?
By mofo3k on 2/12/2009 4:21:54 PM , Rating: 4
I thought the whole point of the Wii was that a gaming machine, not a multimedia hub. I mean, it doesn't even play dvd's.


RE: application for Wii?
By Bremen7000 on 2/12/2009 8:35:52 PM , Rating: 1
When the Wii gets hardware that doesn't suck. But then, it's not targeted at doing anything difficult, as mentioned above.


In other news, Cable Companies angry
By Bateluer on 2/12/2009 4:30:27 PM , Rating: 4
Their business drops, ironically because they aren't serving the needs and desires of their customers. Instead of addressing the fundamental issue, they throttle bandwidth, restrict packets, and file lawsuits against their customers.

Netflix continues to grow, and posts massive growth and profit during a recession. Why? Because they give their customers a service they want for the price they're willing to pay, all while offering top notch customer service and quality.




By Rodney McNaggerton on 2/12/2009 5:06:39 PM , Rating: 3
Actually they're doing pretty well, seeing as many of them took advantage of the confusion left by the DTV transition to force people into new/more expensive plans.


I'd like to see a "premium" streaming channel
By kattanna on 2/12/2009 4:30:50 PM , Rating: 2
one thing i have thought about for a bit is a way for netflix to be able to offer newer movies on its streaming service.

one thing i would be open to is to have an extra payable option of a "premium" streaming channel. say for an extra $9.95 a month, i get access to the latest movies to stream. im sure most of that money would go to the networks to entice them, but thats something i would be open to.




By RamarC on 2/12/2009 5:39:59 PM , Rating: 2
the movie studios are unwilling to do that because they a) are worried about pirating, and b) don't want to cut into dvd/bd sales.

netflix pays them a certain royalty for every true rental, but the royalty fee for streaming is much lower and netflix offers it as a freebie to gain more subscribers. that's why the new releases are so few and limited to titles with limited appeal (or didn't do that well at the box office).

also, some movies can't be offered after their rental exclusivity window closes. so if hbo or showtime buy the rights to a recent movie, then it has to be removed from the netflix streaming library.


new subscriber
By RU482 on 2/12/2009 6:50:21 PM , Rating: 2
I signed up yesterday. United will give you 4000 miles if you sign up using their link. Found it at slickdeals, in case you are interested.




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