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Saturday night was always movie night at my house. Growing up in Harris County, me, my mom, and my brother would always go to the local video store to rent two movies. Every time we would go there, we walk in, browse around, and have a debate as to what two films are worth our time. We couldn’t afford cable. Going to a movie theater was out of the question. The DVD didn’t exist yet. Back then, people didn’t know that viewing movies on a computer was possible let alone downloading it. So for us, it was the local video store. We’d laugh, eat ice cream, and be forced to press pause whenever a phone would ring. The least favorite part of the weekend has to be returning the videos back to the store. Otherwise, automatic late fees. As simple and as mundane as it was, it seemed to be the kind of ritual that countless families would go through every weekend. More or less.
Now fast forward into the 21st century.
When once there were little prospects to finding media entertainment. Now there are several routes. The local video store is dead, in its place is something else. Back then, most local groceries would have a video check-out section in its aisles. Now banks occupy them or coffee shops. You can grab a DVD from a vending machine like a Coke or a Snickers. I remember the hassle of getting a Blockbuster video membership and having conversations with strangers at the direct-to-DVD section discussing which movie would suck the most. Now Blockbuster, Hollywood, and Movie Gallery have been replaced with Netflix, Hulu, Amazon, and Redbox.
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Randy from the Kevin Smith film “Clerks” couldn’t have said it any better. People who work at video stores overcompensate for having what’s basically a monkey’s job. You push fucking buttons. Anybody could waltz in here and do our jobs. Now no one does. The longest distance that I had to go to get a movie and back is 50ft: From my apartment to my mailbox. The shortest distance is 1 ½ ft: From my chest to my computer keyboard to stream 30 Rock. There are so many non-inconveniences in my movie nights now it’s bursting at the seams.
When I tried out Netflix, I was skeptical about it. I live in an area in which video stores are not around the corner and my hectic life make returning videos a chore. Now I host movie marathons at my place and having a partner to spend the weekend is better than ever. Now I can’t imagine what my life would like without Netflix. The little genie in a red envelope that has granted me unlimited movie wishes and internet streaming for $7.99 a month with the option to watch regular DVDs the old fashioned way, online, or on my video game console (most preferred) and even my phone whenever I like. When I was informed that starting January 2011 they would do a rate increase of $9.99, I wasn’t all that concerned. I was able to afford it, and it still had all of the bells and whistles that came with it. Then I read this article online on July 12, 2011 stating that from now on both internet streaming and DVD mail-in delivery would be up to $16 dollars for new customers, and existing customers starting September 1st.
Well, we have a problem.
I became very curious as to why Netflix, a company that came out nowhere with an ingenious concept and defeated the likes of Blockbuster would pull a 180. Well the explanation for that question will in fact surprise you. Because they can. Here’s the lowdown. Netflix is the number one media company on planet earth that offers mail-in DVDs and internet streaming. Right now, internet steaming is the new black. I mean, c’mon why wait two or three days to wait for a DVD to arrive so you can watch only six episodes of Mad Men when you can watch them all on your iphone? Hulu was one of the first internet sites to offer internet steaming of movies and tv shows, at the expense of having subscribers sit through two minute commercials and buffering time. Netflix doesn’t provide those types of shenanigans, so it’s a better deal. But now Netflix is still facing some stiff competition such as Amazon, Facebook, and now Google. A company such as this one, will do just about anything to maintain its dominance even it means having to suck their customers dry. But internet streaming isn’t the only reason.
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The real reason is because Netflix is losing money. Their internet steaming is so good, in fact, it’s too good for their own good. A vast majority of subscribers who use Netflix (myself included) have primarily used their internet steaming service as opposed to their mail-in DVD service. In the fall quarter of 2010, Netflix has profited up to $38 million dollars based on the $553 million turnover they’ve accumulated at the end of that year. You think whoa, that’s a lot of money. How could Netflix lose money? Well, they are. How much do you think a single DVD costs these days? And I’m not talking about the bargain price of Air Bud at Wal-Mart. I’m talking about the costs of a brand-new DVD still in its plastic wrap. Today they cost up to $20 and Blu-Ray DVD’s upwards of $30.
The last time I got a mail-in DVD from Netflix, the disc was completely ruined. I got a replacement DVD within two days. Netflix just flushed $20 down the drain replacing a DVD. So imagine that company having to own at least one DVD copy of your favorite film and five more additional copies just in case there’s more customers asking for it or if one is broken or missing. Those twenties add up. Half of Netflix’s DVD collection is available online to stream, but the other half is not. Simply because most production companies that distribute the DVDs haven’t fully embraced the Blu-ray format let alone online streaming. As it stands, Netflix has up to 22.8 million subscribers. The company would need to have this X amount of DVDs available for the public, and they’ve done that successfully. However with the newfound success of seamless, bufferless online streaming and the apathetic nature of the consumer who would choose to wait for a DVD to be streamed online as opposed for settling for a mail-in DVD, Netflix is at an impasse. What are they gonna do with all those DVDs sitting in their warehouse gathering dust?
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There’s also another reason for the Netflix rate hike. Netflix is going into the production business. Back in March, Netflix made the announcement after acquiring the production rights to the drama series House of Cards, starring Kevin Spacey. The production value alone for the series is at an estimated $100 million dollars. Already Netflix has made a deal with CBS to stream many of its hit shows for up to $200 million dollars. Netflix currently is collecting $1 billion a year for streaming content for Paramount, Lionsgate, MGM, Sony, Disney, and ABC. This move of creating content down the line makes Netflix more of a competitor for companies than a liaison for companies to use. Have you ever wondered why some TV shows that are being steamed on Netflix have only certain seasons available online, but not all? That’s because most companies that have bedded Netflix are on a contingent basis. Come the end of the contract, most of the TV shows or films will be off your Netflix queue for online streaming. Business is business after all, and Netflix is a top DVD rental company. But no production company, no matter how lucrative will help another company if there is no profit or exclusivity rights in it for them.
What Netflix is doing is out of line. Though it may not look like it, America is suffering in a recession. The one few areas in this country that’s managed to excel from the current economic downturn is the entertainment industry. We’re looking at blockbuster movies that are grossing over $200 million in the box office, concerts are still selling out tickets as fast as they can make them, and people are still paying upwards of thousands of dollars for the perfect vacation getaway. Most people are not as fortunate as everyone who can go to a movie theater whenever they want or see their favorite band perform live or even leave town to forget their burdens for a few days. I’ll admit it, my family’s poor. We didn’t have the opportunities that most people take for granted. Given the circumstances, it’s the little things that matter the most. Like having a family movie night. We only paid six dollars to watch two movies on a single weekend. So you can imagine how a family with nothing could react to the rate changes coming from a DVD rental company that now has everything.
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When do you say the words, stop? Somewhere along the way, the underdog has become the barracuda. Most animals eat just to survive, but it looks that this company is starting to enjoy it too much. Come September 1st, I’m switching my plan to internet streaming only. Since it’s seems to be the only way to enjoy my membership now. I’m not trying to sound selfish, or sound like an entitled brat, but when did my service started to turn sour? If I wanted to pay for excessive movies, than I would pay the money they would ask for without hesitation. When they starting the online streaming, it felt more like a gift than an experiment. I used to promote Netflix all the time. I even suggested it to my own family. Now it only makes me recommend someone else.
When I was at this party uptown, and the DJ played Vanilla Ice’s “Ice, Ice Baby”, some people started to grab their coats and their dates and make a quick exit. If you don’t know what that means, Ice, Ice Baby is an end of party song. When that song plays, it’s time to go and grab your stuff. I don’t know how or why this is the type of reaction that people receive, but I get it. No one wants to be the last one standing when the party’s over. Right now this song is playing on behalf of Netflix. Whoever was coming to the party just had a change of heart. Whoever was responsible for the beer got a flat tire on the way over. People are too exhausted to dance and everyone has to work tomorrow. So goodbye Netflix. It was fun. We had some laughs. I’ll post the pics on Facebook in the morning. Oh and one more thing. Your girlfriend got into an argument with my girlfriend. I don’t know what she said to make her mad, but we probably won’t be hanging out with you for a while until things calm down. But we’re still cool. Just call me whenever.
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