December 16, 2008 9:37 AM PST

Long waits for some Netflix Blu-ray customers

by Greg Sandoval
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A screenshot of Josh Lowensohn's Netflix queue featuring plenty of "long waits."

If you're a Netflix customer who's paying an extra $1 a month to rent movies on Blu-ray, you might have noticed that the discs aren't being delivered as quickly as DVDs.

Josh Lowensohn, one of my colleagues here at CNET News, was complaining that he's had Futurama: Bender's Game, in his queue for over a month. The flick Wall-E has been in the queue since November 18. Why is it taking so long for Netflix to ship?

I called Steve Swasey, Netflix's very accessible spokesman, and he said the Web video store simply doesn't have enough Blu-ray discs to go around, especially when it comes to hot new releases.

Hollywood just isn't providing enough Blu-ray copies of newly released films as the company would like to get, according to Swasey. That's the first bottleneck. But the spokesman said the problem isn't all the fault of the studios. Once larger numbers of Blu-ray discs for a film are available, the company won't necessarily buy them.

"There is an expense to that," Swasey said. "These things cost money. We deploy money where we think it's going to be most efficient to keep subscribers and investors happy. It's always check and balances."

Here's the final problem that affects frequent users of Netflix and this won't come as a surprise. If a movie is hot and the company doesn't have enough to go around, the film is going to the user that rents fewer new releases, according to Swasey.

"What we're doing is giving new releases to the person who hasn't rented as much," he said. "We've been doing this for a couple of years and fully disclose this in our terms of agreement. If we have a shortage of titles we do what we think is equitable and give the title to the person who hasn't rented as much or who hasn't gotten as much enjoyment from the service."

Lowensohn is among the unlucky Netflix users who rents a lot of new releases. He says he rents about 20 movies a month. When I tell him what Swasey's response is, he is less than satisfied.

"Sucks," Lowensohn said. "Why are they charging me more? I'm paying but I'm not receiving the movies I want."

Swasey said Netflix is bullish on Blu-ray, but right now only a small percentage of customers are asking for the discs. So far, Netflix's Blu-ray service has about 500,000 subscribers. Netflix's traditional DVD business has 8.7 million subscribers.

Swasey seemed to say that Blu-ray will get more of the company's resources when demand is greater. Sorry, Josh.

CNET'S Josh Lowensohn contributed to this story.

Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
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Add a Comment (Log in or register) Showing 1 of 3 pages (64 Comments)
by BobTheTester December 16, 2008 10:20 AM PST
I haven't had this problem. In reading the article, I suspect it's because I don't order so many new releases. I get 15-20 discs per month, but a fair fraction are old movies or TV shows. I love my blu-ray player, though.
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by jimmyhoops December 16, 2008 10:39 AM PST
The easy solution is blockbuster. I pay a flat fee and can get two movies at a time with no late charges. It costs a bit more than netflix, but I have total discretion over what I watch and when I watch it. Not to mention, I've rarely had to wait more than a day or so for any Blu-Ray disc I want to watch.

I realize that from a cost perspective, Netflix is hard to beat. Personally I'd rather pay a bit more per month to be able to watch what I want when I want. And no, I don't work for either company, but am a big fan of choices.
Reply to this comment
by umbrae December 16, 2008 11:26 AM PST
Actually, when I switched from Netflix, Blockbusters price plans were 1 cent cheaper than Netflix. Unless Netflix has changed their pricing, it is still that way. In fact, I get Blu-Ray for no additional charge and I can still get HDDVD's as well.
by ywkhgqo December 21, 2008 9:02 AM PST
No, blockbuster is now 3 dollars more per month for hte 3 at a time plan, you also don't get the instantly watchable movies like netflix. Netflix has far more movies, and blockbuster's customer service sucks. I used to have blockbuster before they raised prices and took away features. Netflix all the wau
by BtmnHatesRbn December 16, 2008 10:40 AM PST
In the town I live in, only two people have a Blu-Ray player, and it's their PS3s. Furthermore, they didn't know it could play Blu-Ray movies.

Honestly, while I love the idea of 50 GB disc storage for myself, I'm not buying Blu-Ray at all. I'll wait for the format after it, thanks.
Reply to this comment
by wowza3 December 16, 2008 6:18 PM PST
The format after that is a digital format, which is already here and available through netfilx and apple amont others. That will be a much harder transition than blu ray. I can guarantee you that blu ray players will take over the market next christmas and it will be THE format and you won't have a choice but to purchase one. I don't know what town you live in, but I don't believe that at all. Just because you have no friends doesn't mean only two people have blu ray disc players.
by Zeeshan47 December 17, 2008 10:03 PM PST
I feel sorry for you. noone should be confined to a podunk ignorant little town.
by orange636 December 17, 2008 10:32 PM PST
"I can guarantee you that blu ray players will take over the market next christmas and it will be THE format and you won't have a choice..."

Sounds exaggerated to me. I like nice things, but like many people I am satisfied with DVD and thus can't imagine opting into the blu ray even when they do finally reach full profile in cheaper devices next year.
by millerssggt258253 December 21, 2008 8:54 PM PST
@ orange636

Sounds exaggerated to me. I like nice things, but like many people I am satisfied with DVD and thus can't imagine opting into the blu ray even when they do finally reach full profile in cheaper devices next year.

Your satisfied because you are watching movies and TV on an old grainy TV. GET an HD TV. Once you spend the money to get an HD TV you will not be satisfied with DVDs anymore.
by troyoverton December 30, 2008 7:11 AM PST
@ millerssggt258253:

You know, this is not necessarily the case. I entertain with a 47" Philips 1080p, and use a Pioneer DVD that does a pretty darn good job of upconverting (connected via HDMI, of course.)

So for Christmas the children got a copy of "Horton Hears A Who" and I have to say, that even up close, the color and picture is fantastic. It makes me wonder how much better the BR format must be to justify new equipment and the retirement of DVD media.

Right now, having such things is quite a luxury, and I don't think that now is the best time to focus my finances into a semi-mildly accepted format.

I'm sure that in time, its something I may adopt. However, right now, that $75 Pioneer DVD box is doing a fine job of holding us over until times allow for such delicacies.
by lightningrob December 16, 2008 10:42 AM PST
Hasn't been a problem for me. I recently ordered Dark Knight and Iron Man on bluray and got them both the next day. Sucks to be you I guess ;)
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by joshdev December 16, 2008 10:49 AM PST
Yeah Netflix has really been dropping the ball when it comes to blu-ray rentals. I don't mind spending a few extra bucks a month for the ability to rent blu-rays, but the wait times have been terrible. It took almost a month for Leatherheads, a mediocre movie, to be sent to me. The problem is there is no easy way to contact netflix and complain other then via phone, which usually has 10+ minute wait times.
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by ShahabK December 16, 2008 10:59 AM PST
Netflix has always been notorious for delaying DVD to its customer - this technique is called throttling !
Actually Netflix got sued by a guy in the LA area and had to pay big bucks to keep it under wraps.
I cancelled my Netflix membership after I got tired of waiting for DVD's to show up in my mailbox and I could never get the "equitable" viewing experience argument - since I pay the same amount of money irrespective of how long it takes to get the DVD's.

Blockbuster is the answer to this problem - I could never understand why folks would even consider Netflix when you can get a top of the line dual channel experience at Blockbuster ( Online + instore) - I dont work for BB - but still I cannot fault their service or the model.

Why would anyone in their right minds even think of Netflix - they are a bunch of scammers
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by freemarket--2008 December 16, 2008 12:33 PM PST
I think the scammer comment is way out of line. Netflix is a good deal compared to brick and mortar outfits. No driving back and forth, no late fees, bigger selection, cheaper rentals and free streaming. How is this a scam?
by rage-demon December 16, 2008 7:16 PM PST
Ever since Blockbuster tried their "no late fees? but oops, if you turn it in late, we'll charge you a "restocking fee" fiasco, I decided they were the biggest scammers of them all. That was (or still is?) flat out false advertisement.

Also, the fact that a driver's license, college ID, debit card with a photo, AND a cell phone bill STILL wasn't enough to meet their minimum 2 forms of valid ID for new accounts made me rather unhappy with them. It took me three attempts and a complaint to their manager to finally have them reluctantly give me an account (this was a few years ago, before they started their online service, so I don?t know what it's like now.) All in all, at the time I just found Netfilx to be better. Yeah, it is a pain to have to wait at times, but also, I do get new releases right away on a frequent basis, so it?s not too big of a deal given that i always have other movies on my queue. Also, I really enjoy Netflix's streaming service.
by mudixon December 16, 2008 11:04 AM PST
The one thing folks are forgetting is where their Netflix discs come from. It's possible that Josh's distribution center is in an area where there is a large concentration of blu-ray owners (high population center). I live East of Raleigh, NC and my discs come from Greensboro (just West of Raleigh) in about 1 day after they get one of mine back. I have a few "long wait" movies, but it's not that bad. My queue is 150 movies long, so I've got plenty to watch while the newbie movies trickle up.
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by umbrae December 16, 2008 11:11 AM PST
This is why I left Netflix. If you have the most expensive/popular account they seem to perform well. However, have the lower account (like me) or use a less popular feature (BluRay, New Release schedule, etc.) and they will crap all over you.

Blockbuster is much better at getting movies out and supporting ALL customers.
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by freemarket--2008 December 16, 2008 12:40 PM PST
I have the cheap one-at-a-time plan and haven't had any problems. They recently added support for streaming on the Mac so I now have that option as well.

I just turned off the blu-ray option since there weren't many in my queue. Once I have enough for a month or so I'll turn it back on.
by sweaty_taco December 16, 2008 11:29 AM PST
I've had good luck using Netflix w/blu-ray option, but almost all of the movies in my cue are new or upcoming releases.
I just make sure I am diligent in returning the movies by Monday morning at the latest to ensure the next batch of blu-rays in my cue ship out that day for Tuesday release.
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by drborchers March 30, 2009 4:18 PM PDT
I have been a long time Netflix subscriber, getting 15-20 discs a month, and have never had a problem. It is simple to get a new release. If Netflix receives your discs the day they ship out new releases, this greatly increases the chance of getting what is in stock that day.
For me, if I mail out today, Netflix gets it tomorrow, ships it out, and I get it the 2nd day. Almost all new releases are out on Tuesday, so I mail on Friday or Saturday, Netflix receives on Monday, and sends out the new release for its "Tuesday release". I am sure this will work for the BluRay discs as well. Admittedly, I don't get many new releases because I don't care if I am first in line for them, but that is my choice.

Also have never had a problem with billing, shipping, receiving, or had a problem with the wording of their "movie the next day" people were suing about (get a life, nothing is in an instant). Any broken discs have alway been taken care of, whether I wanted a replacement or not. I have even reveived damaged envelopes in USPS damaged mail envelopes, not a problem.

Netflix had provided my family of 5 with thousands of hours of entertainment for only ~$20 a month, which is much better than $50-60+ to go to a movie.

No, I am not a Netflix employee, we just love their service.
by jrbtempe December 16, 2008 11:38 AM PST
I'm both a longtime Netflix subscriber as well as one of their suppliers (small horror & cult label)... this Blu-ray thing has got me pretty hot under the collar of late, especially since they have the gall to charge more and not turn those $$ over to buying more units. I just don't buy the excuse that the studios aren't supplying discs fast enough, especially when every store I'm in has BR discs stacked to the gills.

Ironically, I added THE DARK KNIGHT Blu-ray to my queue just a few days before it streeted and it showed up in my mailbox on street date! I have other Hollywood titles that have been in my queue for months before their release and they're still not here! So something is seriously backwards there. (Guessing maybe they bought too many DARK KNIGHT copies, underestimating how many fanboys would go out and buy it instead?)

Netflix is still a great value, but I've given serious thought to ditching my account in recent months...
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by stuntman_mike December 16, 2008 11:49 AM PST
This is why I am glad that I switched to Blockbuster.

When the article says that they give movies to people who rent less, that totally explains what I was seeing.

When I first became a Netfix customer, the service was great and my movies always shipped and got to me the next day. After a while, it was like they didn't care anymore. They already had me as a customer. They started skipping days to ship movies, even though they were available and at the top of my list. And movies took longer in the mail to get to me also, like they no longer shipped from a local facility.

Paying $1 extra a month for the BDs is dumb. No it isn't a lot of money, but why are they charging more? Especially if they aren't even using that extra money to buy enough BDs to satisfy demand.

Blockbuster isn't the way to go for everyone, but if you have a Blockbuster store near you that carries BDs, it is a much better way to go than Netflix.

I never have to wait more than a couple of days for a new release because I have two different ways to get them. In store or through the mail. You also get to watch many more movies in a months time with in-store trade-ins than you would with just relying on Netflix through the mail.

Netflix on-demand is the only thing that makes me get the urge to come back every now and again, but I can live without that much easier than I can my Blu-rays.
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by tonyjk3 December 16, 2008 12:35 PM PST
That Blu-Ray surcharge is money well spent. NetFlix is going to charge you more to rent blu-rays but they aren't going to put the money into blu-rays. Sounds like alot of BS to me. But that's NetFlix for you.

The whole key to getting new releases is to return your movie so it gets to NetFlix on the Monday before a new release comes out. When they process your returned movie on Monday, they will almost always replace it with a new release. That has been the only sure fire way for me to get a new release, otherwise its weeks to months of waiting - for DVD too.

I refuse to rent blu-rays from NetFlix even though I have a blu-ray player. 1) I refuse to pay a premium to rent blu-rays. Its a garbage fee. 2) the one time i did - pre-fee - the movie kept skipping.

NetFlix needs to routinely clean the discs.
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by bpob1977 December 21, 2008 10:10 AM PST
This is true, I have had a fairly large percentage of unplayable blu-ray disks from Netflix. They are always very good about quickly replacing them, but it's annoying nonetheless. I've found the problems usually revolve around scratches or cracks in the disk, so I don't think merely cleaning the disks would solve the problem. It does make me wonder if BD's are more susceptible to damage. On the other hand, I rent very few regular DVD's, so I can't really compare.

And I do object to paying a blu-ray "tax!"
by Microgates December 16, 2008 1:00 PM PST
I have the 1 movie out at a time and always get my movies quickly (And never have a problem with streaming over my 360) Now GameFly on the other hand................
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by Heebee Jeebies December 16, 2008 1:45 PM PST
Well, this would be easy enough to live with. However, in recent times movies have started up and disappear. I had three in my queue and they became unavailable. If the amount of time to get a blu-ray goes so long that the movie disappears because of the marketing greed of the studios then I have an issue with that. Once a movie has been release no matter what the studios do as far are putting it on TV or otherwise it should remain released and available. If the movie studios start making Netflix and others pull movies so that they can charge more for other release venues then Netflix looses a great deal of its appeal and in fact I would drop them like a hot potato. The studios had better watch their greedy selves and Netlfix needs to put their foot down with the studios, rentals bring in a lot of money too.

Robert
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by Balloonknot December 16, 2008 1:56 PM PST
Netflix is a great deal. I've never had a problem getting them in the mail or downloading. As far as I can tell, Blurays come just as quickly as the DVD's. I think your wait might be a unique case. To all the Netflix bashers...any way you slice it, having any movie, TV show, comdey routine, cartoon etc, delivered to your door or instantly streamed to your TV, in good quality I might add, all starting at $8.99/mo is just plain awesome. If you have a 360 you don't even need to buy the hardware.

There will always be complaints about any product or service. Free market competition remedies that wonderfully. But Netflix is the best deal out there right now. For the price, I'm very satisfied.
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by ddiddy415 December 16, 2008 2:38 PM PST
I have had no problem with my bluray account......all the movies that they have listed here as long waits dont show up like that on my computer???????? GO BLUE!!!!!!!!!!!!!!!!!
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by r13k1 December 16, 2008 3:27 PM PST
I ditched netflix when I kept receiving blu-ray discs that would not play because they had a small crack at the edge or a couple of scuffs. Blockbuster has sent me the wrong disc before, but out of 90 or so discs, not one that would not play. The hddvds with mega scratches even play in my combo drive. Oh, and no extra charge for hd content!!!!!!!!! Oh and I can drop the one I watched at the store and pick up another on a whim instead of waiting a couple of days!!!!!!!!!
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by bkw1906 December 16, 2008 3:30 PM PST
First let me start by saying I'm a loyal netflix customer. So when I read this article I knew it was bs. I got Dark Knight on Blu-Ray the very same day it came out. It was no wait. When I saw the screen shot of Wall-E I thought that was bs. Guess what. I put it as my next movie. And recv'd an email that it was shipped today. The same day. So like lightningrob said "Sucks to be You" I have no problems with Blu-Ray. Must be a BB Homer.
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by Heebee Jeebies December 18, 2008 8:53 AM PST
But, not everyone is that lucky. If they get 1,000 copies and have 10,000 people in line for them then 1,000 people are lucky the other 9,000 are exponentially unlucky. Try removing it from your queue the day before and add it back the day after release and see how quickly you get it.

I too have been lucky in getting new releases the day the come out. But, when I miss something and don't get it added to my queue soon enough it takes months to get it.

They need to buy more copies and this means that they needed to continue to sell the copies they don't need after taking care of their customers. I bought a lot of used discs and I don't know why they would stop that. You can't tell me they are going to keep 30,000 copies of SinCity or 300 or Howard The Duck.

Robert
by boofa_2001 December 29, 2008 3:22 PM PST
Well, hate to break it to YOU, but the article is absolutely true in my case. I've had Wall-E in my queue since well before it was released and still haven't seen it. Same goes for Tropic Thunder. If I've got a return in so that they receive it on Monday, as some have stated, then I've been lucky enough to get a few releases on street date. That's not really convenient for me though since most of my movie watching takes place on weekends. So I guess I just get to pay an extra $1/month to not get to see something until 3 months after release because I watch alot of movies. Total BS!
by AXG December 16, 2008 3:38 PM PST
This is the reason why I cancelled my subscription. The blu-ray movies and the new releases were in queue forever. Blockbuster has a better way to search for new releases, Netflix does not even show new releases. Netflix's definition of a new release is a movie which has been released one year or earlier.
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by rgor December 16, 2008 3:50 PM PST
I have been both a netflix and blockbuster subscriber (at one time or another). I take everything with a grain of salt. Netflix has a better collection of international movies, independent, etc. They are slightly cheaper however, BB gives you a level of convenience (drive to the store and just get what you want) for a little added cost. We stream netflix for those "dry" nights when we are between movies. Blueray will take some time to catch up. It will take a couple of years to get the format to the magic 150.00 price point as a common place. The truth is that Netflix is spinning it correctly. Expensive discs, short supply, and a smaller market makes this a tough sell. Besides all the best movies out there look great on dvd or blueray i.e I got to see Godfather recently on a regular tv (no hd gasp!) and it was just as thrilling. Watch it on dvd, if you like it alot then try it on blueray. There are a lot of "garbage" movies out there and putting the blueray label on them doesn't make them any less viewable.
Wish they would more of an effort in making better movies NOT better looking movies.
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