Could Netflix's Patent Lawsuit Boost Blockbuster?
from the unintended-consequences dept
Earlier this week when Netflix decided to sue Blockbuster over its business model patents, the one thing that seemed odd to many was the timing. After all, Netflix had been able to continually wallop Blockbuster in the market, despite plenty of fears for many years. When Blockbuster first entered the online video rental space, many thought Netflix was doomed -- but they managed to keep growing at a much faster rate while Blockbuster seemed unsure of what it really wanted to do with the online offering. Early on Netflix's actions even made clear that they were more concerned about competitors like Amazon than they were by Blockbuster or WalMart (who eventually outsourced their effort to Netflix). In fact, there was even talk recently that Blockbuster would ditch its online component completely and focus on its core business of renting from stores. They apparently decided against that late last year and refocused their efforts, but it was still considered well behind Netflix. So, in suddenly sending out the patent lawyers, does Netflix risk legitimizing the competition from Blockbuster? It certainly seems like the way Blockbuster is spinning the lawsuit, noting that it's their sudden surge in the marketplace that has Netflix scared. With there already being plenty of doubt about Netflix's ability to prevail -- will this lawsuit completely backfire and simply serve to make people more aware that Blockbuster has a similar offering?Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
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it could kill blockbuster
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it should hurt Netflix
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Re: it should hurt Netflix
Fact is, Blockbuster retail stores throttle in their own way, too. Show up at noon on Tuesday and you are definitely going to get the new release that day. Show up at 8 pm and chances are you will not. Different market, different model but both have the same problem - finite number of discs. You are certainly free to switch services or go back to brick and mortar. No one is forcing you to be throttled by Netflix. You can go be throttled by Blockbuster On-line OR you can pay per rental at a brick and mortar.
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Re: Re: it should hurt Netflix
You're right about one thing, though. No one is forcing me to be subjected to this. That's why I quit netflix and am settling for OnDemand and the occasional trip to a B&M until someone gets it right online.
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Re: it should hurt Netflix
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Re: Re: it should hurt Netflix
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Re: Re: it should hurt Netflix
YES, both companies have a finite amount of discs, but the methodology is different.
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Re: Re: it should hurt Netflix
adj.
1. Having no restrictions or controls
2. Having or seeming to have no boundaries; infinite
3. Without qualification or exception; absolute
Amidst your arrogant explanation, you still mentioned your higher expectations of preference with new releases considering you rent very little as opposed to someone who rents, and correct me if I'm wrong, 20 movies a week?? (slight exaggeration?) What was the last time you talked to someone who pays for any kind of service that has low expectations? Fact of the matter is, we ALL expect a better service from anyone we spend our money with.
One thing you are right, we all have the choice, like anything else in life. I made the choice to reply to your arrogance and ignorance.
Happy trails.
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Re:It Should hurt Netflix
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Re: Re:It Should hurt Netflix
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Re: Re: Re:It Should hurt Netflix
I can't same day a movie back and forth, but I can drive to blockbuster, pick it up for free which Netflix can't do.
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Re: Re:It Should hurt Netflix
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NetFlix Vs blockbuster
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Re: NetFlix Vs blockbuster
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Re: NetFlix Vs blockbuster
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NetFlix the evil empire
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Re: NetFlix the evil empire
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Re: NetFlix the evil empire
Even if I get throttled by netflix, which does happen, I don't have to wait an entire week.
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brick & mortar membership better
Can't imagine having to wait for it to go through the mail.
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Re: brick & mortar membership better
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Re: brick & mortar membership better
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Blockbuster throttles too
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Re: Blockbuster throttles too
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Re: Blockbuster throttles too
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Blockbuster throttles too
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Of course they throttle!
In case you didn't know, it does cost actual money to mail DVDs both ways, and Netflix actually loses money on many of the members who receive more than the average customer. You can complain all you want to, but you are getting extremely good value for your money, even when your throttled.
Yes the pricing is for 'unlimited' rentals, but that unlimited amount simply comes with the stipulation that preferential treatment goes to those customers who rent less. They are still losing money on you, so get over yourself!
Flagg
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What?!?!
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C'Mon y'all! Get the Facts Straight!
The entire concept of process patents is stupid. Look at IBM, they are deep in patents, however they are based on a physical mechanical interaction or module within another piece of hardware or software. Not "ideas." Amazon tried that, remember - didn't work long, now they have 90 people who do nothing more than attempt to figure out how to automate human processes and Microsoft has taken over a business park in India - hiring people with NO PATENT EXPERIENCE REQUIRED and are reviewing pretty much anything ever made and determining if there are any "open" patents to file... Nice business model!
Netflix continues to deliver faster than most, until throttled, then you don't even wait so long...
Blockbuster has the B&M Tied up. Hollywood is a pale second. They should try an unlimited, recurring membership fee for rentals as well, level the market and see what happens. Hell, it can't hurt - there is a great need for prime locations wtihin the best stripmalls.
When someone said OnDemand, I said, Right On! First, Pay Per View (aka OnDemand) was great, remember when the cable box used to be connected to the phone line? Well, after that they went without the phone connection, utilizing two-way communication - already within the communications capability of the box. Now, with really, On Demand (Channel 1) Videos, television shows you miss, everything you can want is ready 24 hours a day for your viewing pleasure, when you press start.
Feel free to FF and REW while you PLAY your movie. Being able to do that with live TV still freaks me out. But TIVO - HAH! Gave away the only one I ever had without even opening the box - I had already fallen in love with Windows Media Center and Cinema Now. But today, Comcast - just rules. Satellite - Get it OUTTA here!
Okay, so back to the rental topic.
No throttling;
No more than 3 @ any time
No monthly limits (1 transaction daily)
Games and DVDs.
B & M could rule the world.
Or, Netflix could buy up Hollywood Video and do their own thing! C'mON guys!
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Blockbuster vs. Netflix
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NetFilx or Block Buster
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I hated Blockbuster stores
As of hearing of this patent lawsuit, I immediately cancelled my NetFlix account and sent them a note regarding my personal moral choice. I'm tired of shoddy patents being used by companies to boost their bottom line. I refuse to support a company that tries to make money through nothing patents and teams of lawyers.
Much to my dismay, Blockbuster now has my business. (I only ever had a problem with their unbelievably high prices).
I don't know if I will get the same service, but the selection *seems* comparable, the service fees are acceptable and I just received my first two rentals the day after I requested them, so it's comparable performance to NetFlix (who never throttled me, because I was a very profitable customer... on the three rental program I probably wathed six movies a month).
So my hope is that NetFlix gets hurt by their patent lawsuit. I don't care if it props up Blockbuster, but it'd be nice if people who believe that these types of patents should be handled differently would vote with their feet when they can.
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Nextflix's customer acquisition cost is over $40 - it costs them more than $40 per customer to get that customer. The only reason a company would spend this kind of money is if they stood to make a nice profit from each customer and expected they could hold onto them forever. Throttling customers is something that people complain about - to their friends, family, online etc. Netflix is only driving those customer acquisition costs higher.
Suing Blockbuster only legitimizes Blockbuster as a competitor. Stupido!
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Re:
Having said all that, Netflix is clearly listening to bad advice. This business process patent sounds stupid to everyone I've mentioned it to. They are goning to hurt thmselves by losing customers and giving BB a ton of free publicity. They are actually making the hated BB look like the innocent!!!!
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When it starts taking 2-3 weeks to get a disc, because I'm being throttled, is unacceptable.
The nearest depot is in Deluth, GA and I live in Albany, GA... Now I understand that because I live in the middle of ghetto central, that the mail is slow because, well, it is the 'souf'. But this is insane. The best part is when they send the surveys out and I mark on there that the movie go there after the latest date, because it really did get there that late, the service seems to slow down significantly more.
I have attempted to contact customer support and they do not seem to care... I have been hung up on repededly by the agents taking my call, because I ask for a supervisor or manager to fix the issues. Apparetly they didn't learn any thing from the lawsuits. I'm so glad I opted not to get in on the settlement. Now I can sue.
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I've used both services...
Frankly, I don't have a problem with them holding out on heavy renters - if that was what was advertised. Unlimited means UNLIMITED, not, "unlimited as long as you stay below a certain limit." False advertisement if you ask me and I have no sympathy as a result.
After a few words with Netflix's tech support I canceled my subscription and signed up with Blockbuster. After 6 months with Blockbuster I have yet to have movies withheld in a similar manner. Sometimes a movie takes an extra day to reach their facility after I've shipped it back (funny considering I often ship 3 at once) but I have never seen my movie rentals take 5 days to reach my home and then have support claim that the US postal service is to blame - that's a flat out lie when it happen to every movie shipped over a 3-week period (other mail arrived just fine, thanks Netflix!)
On top of superior service (so far), Blockbuster gives me two free in-store rentals a month and usually an offer for a free DVD or a buy-one-get-one-free deal.
My opinion? Obvious. I hope Netflix loses and the competition gets tight because that can only mean better customer service from all if they want to keep my business.
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Ohhhh Blockbuster is going down
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Re: Ohhhh Blockbuster is going down
Distribute what you advertise corporate monkeys!
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Re: Ohhhh Blockbuster is going down
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How Do You Patent A Biz Model?
Personally, it sounds like a load of manure to me - lawyers with too much time on their hands and looking to enhance their income.
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BLOCKBUSTER HANDS DOWN...
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Lesser of 2 Evils...?
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BBI throttling is ridiculus...free coupons
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Same Issue with Netflix
http://xbox360s.freepay.com/?r=29899665
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Netflix membership
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Walking Dude Dumbest poster around?
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