Hate Netflix? You're not alone
The video-streaming and DVD-by-mail company gets the lowest marks of any online retailer and trails only Wal-Mart overall.
That is, unless you're a certain DVD-mailing, video-streaming service that split its offerings and doubled its prices two years ago while dealing with outages and fluctuating content ever since. Sorry, Netflix (NFLX).
According to 24/7 Wall St., the average customer-satisfaction score for retail companies was 76.6 out of 100. That score jumped to 82 for online companies, but Netflix dropped from atop the customer satisfaction pile in 2009 to the worst-performing Internet company of 2012. Though it still trails Wal-Mart's (WAL) worst-in-America score of 71, Netflix's 75 rating is a steep drop for a company that never quite recovered from its 2011 public relations nightmare.
To give consumers some idea of how bad Netflix's score is, streaming competitor Amazon (AMZN) scored 88 to lead all e-retailers. Netflix, meanwhile, is tied with Sears (SHLD) -- which is basically a ghost ship of a company. J.D. Power's 2012 Online General Merchandise Retailer Satisfaction Report placed both Sears' and Kmart's websites among its worst performers. In the stores, meanwhile, when Sears Holdings isn't trying to sell off real estate and shrink its footprint, it's refusing to spend on store upgrades and marketing while hemorrhaging revenue.
Despite an exclusive content deal with Disney (DIS), Netflix has a host of problems. A service outage on Christmas Eve that Netflix blamed on Amazon's servers is just a reminder of the short leash consumers have given the company since its 2011 price hike. It didn't help that the man who devised the DVD-streaming service split and the ensuing cost increase, Netflix CEO Reed Hastings, gave himself a 100% raise just after the Christmas Eve outage.
Two years later, consumers' key qualm with Netflix is still that neither its streaming service nor its DVD-by-mail service has the same value at $8 a month as when both were offered together at that price. Since then, Amazon's Prime streaming service has emerged as a cost-effective competitor, while Coinstar's (CSTR) Redbox and on-demand services continue to hammer away at Netflix's delayed release schedule for new DVDs and aging model for delivery. While the 75 score Netflix received in 2012 is an improvement over the rock-bottom 74 its customer service received for 2011, it's still a bracing reminder of how far the company has fallen in consumers' eyes and how much ground it needs to claw back.
I don't mind Netflix. It's been a year now since we ditched cable and went to antenna. We use the station web sights to watch TV shows that we missed the night before, most are online the next day. We still go to the store down the street to rent movies once in a while.
For just under 9 bucks a month it still beats paying over 60 bucks just for basic cable. The antenna even sends us high def digital for free, 80 buck antenna, paid for itself in 1.5 months of no cable bill.
So why has Netflix stock gone from 56.00 to 182.00 since the summer of 2012? Are we now investing in failure? I don't think so. Personally, I have had Netflix for four years and find it the best of the streaming and renting choices. Hulu is next and Amazon is last with its often grainy, stop and start streaming.
Quit picking on them. You get more than enough for the $$$
Netflix is good and the problem they have is greed at the providers. They have just jacked up the price of the contract to distribute their movies. Theatre owners demanded that the DVD Movies not be sold or distributed for one to two months after the start in the theater. That's why first run movies are late by 2 months.
Some cable systems can show them if it has a charge on demand basis. That's the same problem cable companies have with increasing fees because of such things as
sports channels that have contracts with major games. The players want far to much to play kids games all their life. I would like to drop the charge for sports on my cable also.
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Bill Stiritz owns more than 5% of the company, and has experienced an estimated $145 million in paper losses on his investment.
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