Saturday, February 11, 2006

Netflix Strikes

According to an article on cnn.com, Netflix has been cheating their frequent DVD renters (which would include my Studly Hubby and I). Apparently, it costs them about 80 cents per movie rental for shipping so they lose money if you rent more than 20 or so movies a month on their $17.99/mo plan. So for so-called 'frequent renters' (I'm not sure where the cutoff is here), they delay shipment on movies by a day or so to reduce the amount of movies that can be rented. In addition, the frequently rented movies (ie New Releases) that have a long wait are preferentially sent to new and infrequent Netflix renters. They apparently didn't originally disclose this little part of their renting policy in their contract and there was a class-action suit filed against them in 2005 - now it's all in there.

Although their strategy makes sense, my Studly Hubby and I are feeling a little ripped off (even though we hadn't previously been upset with them and had never noticed any delayed shipment). Maybe we'll get over it. Or, maybe we'll switch over to Blockbuster.

1 comment:

KT said...

switch to blockbuster man...you get all of the same stuff as netflix PLUS free in store rentals too!