Monday, February 13, 2006

Netflix Punishes Frequent Renters

First they denied it, but now Netflix admits it in their contracts: people who rent a lot of DVDs from Netflix won't get new titles as quickly as they should expect. That way, Netflix can limit the number of DVDs people rent a month and keep aggressive renters from nibbling away at their profit margins. Netflix also punishes their best customers by giving casual renters first crack at hot titles ahead of them -- that keeps new renters more likely to return and high-volume renters from hogging all the big titles. In practical terms, people who once rented 18-22 titles a month are slowed down or "throttled" back to about 13 a month.

4 comments:

Anonymous said...

How frickin' annoying.

Anonymous said...

I never rent enough to be affected, but it is obnoxious anyway.

priv8pete said...

Interesting. The turnaround time for my account dropped significantly in January and I attributed it to the Rochester distribution center. So, I complained a bunch and the turnaround time has since returned to the normal 2 day time frame. A disturbing revelation by Netflix but perhaps the squeaky wheel does get the grease...

catalyst said...

You know what upsets me most about Netflix, is the inability to get their new releases. I have had the 40-year-old virgin as #1 on my list for over 6 weeks now, and still haven't gotten it.

This week I'm dropping all my other movies and just waiting until I get it.

Here's an interesting comparison b/t the Whitehouse and Netflix.

http://www.tnr.com/blog/theplank?pid=8323