Saturday, July 5, 2008

Netflix Maintains the Right Profile

Countless couples Clash concerning cinema. While one digs romantic dramas like A Place in the Sun, the other prefers classic westerns like Red River, and so on. But riding to the rescue in recent years has been Netflix, the DVD-rental-by-mail service whose "Profile" feature offers an ideal antidote to film-related fighting (aka "flickering").

In brief, Profiles allow couples (or families, roommates, etc) to join Netflix under the same account (in terms of billing), but maintain completely independent sub-accounts with unique queues, friends, ratings and tailor-made recommendations. This way two friends, as an example, can split the cost of the 4 DVDs at-a-time plan (for $12 each/mo) without sacrificing any of the personalized features they'd get if they each purchased separate 2-at-a-time plans (for $14/mo).

As beneficiaries of said service, Brumpelstiltskin were absolutely gutted when, on Jun 25, Netflix announced intentions to eliminate Profiles. Our finance guru, Greenspanke, responded by downgrading Netflix stock to "Triple Sell" whilst MC Gallagher even threatened to "join the fooking competition".

We were not alone in our angst. Indeed, a chorus of disgruntled fans of the service sounded off on blogs and forums, while others banded together via both an online petition ("Save Netflix Profiles") and a Facebook group ("People annoyed that Netflix is eliminating profiles").

And lo and behold, it worked. On Jun 30, Netflix sent its members an email, the first line of which simply read: "You spoke, and we listened. We are keeping Profiles". Within minutes, the usually cautious Greenspanke upgraded NFLX straight past "Don't Buy" all the way to "Risky".

On its official blog, Netflix further clarified both their initial decision and the subsequent about-face:
Because of an ongoing desire to make our website easier to use, we believed taking a feature away that is only used by a very small minority would help us improve the site for everyone. Listening to our members, we realized that users of this feature often describe it as an essential part of their Netflix experience. Simplicity is only one virtue and it can certainly be outweighed by utility.
Call us naive, but such language is welcomely candid coming from a big business: the original "sin" seems to have been genuinely well-intentioned; the apology, gracious and humble. But such actions should also boost profits: not only has a great service to customers been spared, but in the process great customer service has been proven.

In others words, while it was only balk/bluster to begin with, we won't be joining the competition any time soon.

4 comments:

Jessica said...

Flickering. Good one, Michael. That's what keeps me coming back.

Peter said...

For some time, I had ambivalent feelings about Netflix. There was a period during which it was taking my returned movies two days to be received when I knew that the U.S. Postal Service only took one day to deliver to the nearby shipping facility. The "issue" has since been corrected (I voiced my dissatisfaction and received a gracious response), and recently, I've been quite pleased by the 'Flix.

All that to say, the movie rental giant has made some shrewd business decisions in its time — namely, the provision of unlimited instant online viewing to counter Blockbuster's option of returning movies at the store rather than waiting for the mail. I'd say that the decision to keep profiles will likewise prove to be a wise move on the part of this service to which I've been a loyal customer now for three years.

axe said...

Great post Brumm. To respond to Pete, Netflix is probably doing you a huge service by delaying the delivery of some of your movies. They know that once you get a movies like "Life of David Gale" you will watch it and think, "What a huge waste of my time." So take it as a sign of your movies tastes.

Peter said...

Actually, I think the explanation they gave was that I had such good movie tastes (including the title Axe mentioned) that they had to delay my shipments because everyone else wanted to see those movies, too, and it wasn't fair that I was always renting the best ones.