Netflix has been in the news over the last week because of corporate changes. Check out the following articles.
http://finance.yahoo.com/news/How-Netflix-Lost-800000-nytimes-2771345185.html?x=0
http://en.wikipedia.org/wiki/Netflix
http://www.bloomberg.com/news/2011-10-24/netflix-3q-subscriber-losses-worse-than-forecast.html
What do you think about Netflix's moves? How does your family view movies? Does Redbox pose a threat to Netflix? Do you remember small home video stores? What if you could receive all content via the Internet on your TV? What are the economic implications of this?
Think about some of the questions and post your response. Feel free to comment about other students (or my response).
I think that Netflix made their decisions under the circumstances of the environment. My family usually just rents movies from the video store or go to the theaters. Redbox does pose a threat to Netflix because it is quicker to get the movies from Redbox than waiting in the mail for Netflix movies. I do remember small home video stores, I still go to them!!If I could receive content via internet it would be a lot easier to obtain it than going out to get it. The implications of this is that the money we could spend to get it from places would be given to other businesses and people.
ReplyDeleteI think that netflix is a good company for people that have time to watch a lot of movies.I only watch a movie about once a week,so netflix is not for me.Redbox poses a threat to netflix because its so conveniant to rent a movie anywhere than to pay membership for movies that u might never watch!If you recieved all movies via internt,it would be cool to rent a movie,but not buy membership.
ReplyDeleteNetflix is a good company because u can get movies, but being a member for how much money a month isnt so good. When i see movies, i like to watch them without having to pay alot of money. Redbox on the otherhand can be a threat to netflix because of how fast and easy it is, but when they charge you only with ur credit/debit. Each day you dont return it, they get mony from your card. You also have to give your password to them. How would U know if they are stealing money from you?!Thats why i go to family video because i make sure that i am spending the money that i want to on movies. if you take a $10 bill, u can get how many movies you want. Plus, membership is free. There are some bonuses to this. So i dont have to worry about my money and get something in return at the same time. membership is not all that bad all the time.!!!!!
ReplyDeleteNetflix is a good company because you could instantly get movies on your tv,wii's,xbox's,and so on, without paying a lot of money for them. I really don't watch a lot of movies,so I don't use Netflix. I think Redbox does pose a threat to Netflix because of its easiness and multiple locations. the only bad thing about Redbox is that you have to pat with credit cards(which most people don't have). I do remember small videos stores, because my family members regularly go there. I think there better than Netflix because you need to pay for memberships or give out credit card passwords. If you were to receive all content via the Internet on your TV it would be cool beacuse if you were to just want something you could get it on the internet and instantly get it. The economic implications of this are that you spend money to buy movies that you desire and it all does to a vast business and people.
ReplyDeleteNetflix used to be a good company until they started raising prices for movies people have never heard of. I will admit that the idea of instantly streaming videos from the comfort of your couch is a great idea, but are the problems that are associated with it worth it? I think i'm the only one on here that watches alot of movies and i had to stop using Netflix because (a) it was 15 dollars a month and (b) the movies on there were starting to get worse and worse. I do think that Redbox poses a threat to Netflix because it's a dollar to rent a movie that just came out like 2 months ago. It's a Redbox everywhere so it's almost just as convient as Netflix. I remember local video stores like Blocbuster and Family videos. I used to like going there because everytime we went there i could buy popcorn, candy, and other movie watching neccesitties. If you could recieve all content via TV Internet then i think it would help the economy. By not going out to the local video store you save money on gas which will help with the oil shortage, and in turn it might even lower the price of gas. On the other hand, if we could recieve all content via TV Internet then video stores will have become obselete, and alot of people will lose their jobs. So it's one of those lose\win situations.
ReplyDeleteI used to love Netflix until it started raising its prices. Now, my family views movies via Blockbuster and Dish-on-Demand. No, Redbox does not pose a threat to Netflix. For one, people do not want to go out to find a redbox when you can stream netflix from home, that's one of the qualities Netflix has that I believe has helped them keeped customers even after the HUGE price raise. Anyways, no, I do not remember small video stored unless you consider Blockbuster on. But is you do, then yes. If you don't think that it is one, then you would think my answer is wrong. It would be so cool if I could receive all content via the internet on my TV. Then I would never hav to turn on my computer to watch netfilx, which I wouldn't have to anyway considering I have Netflix apps on my PS3 and 3DS. The economic implications of this is that people are saving money while netflix is losing it, causing its shares' values to go down, in contradiction, causing people who invested in Netflix to lose alot of money.
ReplyDeletePersonally I think the price increase in crazy. If they wanted more business wouldn't they lower prices.? Im glad my family doesn't use Netflix because their prices are high and to me thats a waste of money. I like having On Demand *Thats how I rent movies.* or the Redbox. I think Redbox threatens Netflix because they have newer movies for cheaper and their usually at the grocery store. Then you don't have to worry about paying a monthly bill. I like going to Family Video sometimes because they have a bigger selection and its closer to home. If I could receive all content on my T.V(from the Internet) I would because it would be easier to find movies and listen to music. The implications are that Netflix is loosing business and money that they once had. Their product isn't being used as much as it was and that is going to cause alot of people to loose money if they own shares in the company.
ReplyDeleteHey all,
ReplyDeleteWhy do you think Netflix had such a big loss? They raised their prices and what happened in response? Does this always happen?
This will be the big theme of this week's lecture.
Best,
Alec
I use Netflix all the time and also my family but why would they rise their prices? I think redbox has a treat on netflix because redbox has all the newer movies so more people would use redbox. If i had internet from my tv i wouldn't use it because it would be difficult to use wit a remote so i disagree about internet from a televison.
ReplyDeleteI think that the cost of Netflix will cost them thousands, if not millions of customers. Unlike Donavin, I agree with the internet tv. Why? Because they would make special remotes for that. I think Redbox does pose a threat to Netflix because the cost is much lower. I watch my movies On Demand, which is fast and simple.
ReplyDeleteNetflix had such a big loss because they started to "dumb down" their movie collection, and then expected people to pay 15 dollars for it! To people the price increase was like a slap in the face because in the Netflix ads they promised a bigger, better, and cheaper Netflix, but instead they cut the selection in half and raised the prices almost 50%! Alot of people I know (and according to the press alot of people I don't know as well) stopped using Netflix because of the price increase. No this type of negative response to a price increase does not happen - depending on the item. For example, the cost of ciggerates is now up to $8 dollars per pack. Despite this high cost people still smoke one maybe even two packs a day! The reason for this is because now ciggerates and tabacco are considered necesitties, and even though it costs alot they NEED it. So if the item is considered a NEED instead of a WANT then there won't be this bad of a negative response.
ReplyDeleteAdding to my earlier response,i think that paying a price a month is a waste of money.My week is so busy,i only get to enjoy a movie on weekends!why pay monthly for something you might only use once a week?I am more of a family video renter.i pay for the one movie i want to watch.I think people are crazy to spend 15$ a month for a bunch of movies they might not even get to watch.Also,i took the time to look at yahoo finance,and all three of the companies our group invested in went down!!!!(google,at&t,and verizon are all down.)What are we going to do!?!!!?!????
ReplyDeleteI used to think Netflix was an interesting company, but after they raised the prices I lost much interest. My family often uses Redbox to watch movies, if not that then we go to video stores, such as Family Video and Blockbuster. I do think Redbox posts a major threat to Netflix. I think it's a threat because people tend to use Redbox a lot more. It's a lot better to watch a movie and only get charged a dollar a day than to rent it for a week and probably only watch it once or twice. It's basically a waste of our money.Even though Netflix is probably more convenient than Redbox, I personally think it's much cheaper. I have never used Netflix a day in my life, and i don't plan on it anytime soon.
ReplyDeleteI think Netflix lost a lot of money and customers because they raised the prices. After they raised their prices a lot people stopped using it because it got more expensive. A lot of things do tend to happen like this. A lot of people are out of jobs right now and they don't have much money to throw out the window. This means that they don't have a lot of money to spend on thing that cost way more than they should. People prefer things that work just as great as the "better" ones do and that are on the non expensive side as well.
ReplyDeleteI don't use netflix myself I use the redbox(: But anyways I think that netflix has lost a lot of it's customers because of high prices. I remember when we had blockbusters &&' hollywood video. A lot of people are without jobs in america so they don't have the money to just throw away &&' that's why alot of people don't buy movies or unnecessary things. If it were me I would try &&' keep every penny I have because in this economy you just can't be throwing money away. There are a lot of people that go &&' buy their movies at the actual movie store &&' save money doing that. I think we should go back to the old fashion way of buying the movies hands-on. But if Netflix wants any business they need to lower their prices &&' look at what consumers actually want.
ReplyDeleteI think Netflix is a good company because it lets you to watch movie anywhere be it on your tv,laptop ect. My family dosen't watch that many movies we just normally go the movies one a month ao catch something on t.v. I don't think Redbox poses a threat to Netflix because with Redbox you have to go and get the movie but with Netflix you can just stay at home and watch them on your t.v./computer. I do remember the small video stores but my parents never really went there. If I could receive all content on my t.v. would great, because instead of a small 18in screen on my laptop/pc I could watch it on a screen twice as big using my t.v. The economic implications of this is that Netflix is the better compaby because it offers more options. More options. More customers. More money.
ReplyDeletei think netflix is a great company because it lets you watch anymore at any time. it is easier to get the movies on line then to buy every movie you want to watch. but netflix needs to lower there prices in order to get more consumers:)
ReplyDeleteI think that netflix is a pretty good way for people to watch movies at home or on the go. I'm not really into movies but I hear alot about netflix from friends. I think that redbox does pose a threat because people see redbox in alot of places like walmart or k-mart. and since lots of people shop at places like this they are going to buy movies from there.
ReplyDeletei think that netflix is something a lot of people be using. in my family we be using netflix and redbox.
ReplyDeleteI think Netflix is a good company, but the price raises I though were a bit crazy.I view movies by netflix because I enjoy watching movies.I remember those small home video stores people use to go to them alot, but not really anymore.I think it is a great idea to receive all content on your tv via internet because you would save money on gas by staying home instead of driving to the dvd store.If netflix continues to raise this will be hurting the economy.
ReplyDeleteI think netflix is a good way to watch movies . Me and all my famile use netflix . I think redbox has a threat on netflis because netflix prices are getting higher and higher and pretty soon nobody would want to use netflix . Also because redbox have all different types of movies but netflix only have a couple different types
ReplyDelete