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Netflix, father Frankenstein.

Paul Moore
By Paul Moore posted 2 years ago
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My understanding of business is pretty simplistic, I’ll be the first to admit that. I don’t understand this pattern I see in the business of buying and selling movies. The pattern is this: those who love movies the most are pushed aside for those who are moderate to minimal movie watchers.

The latest example was brought to my attention by Kim Voynar at Cinematical. In her post, Landmark Theaters axes discount cards, she laments the discontinuation of Landmark Theater’s Discount Card (buy a block of 5 tickets for $30). They dropped the card in favor of more complex and expensive alternatives. Alternatives not created for people like Kim who watch a heckuva lot of movies, people who are looking to love and be loved by their movie providers. Now, giving credit where credit is due, the indomitable Mark Cuban came across her post and had the Discount Card reinstated. But the debacle was another notch in the belt for wandering, misunderstood movie lovers.

In the October issue of Fast Company, CEO of Netflix Reed Hastings put a ham-fisted spin on why their heavy users-avid movie watchers-get less friendly treatment over light movie watchers. Basically, when given the choice of two customers wanting one movie, Netflix will ship it to the customer who watches less. In essence, taking advantage of the avid movie watcher’s loyalty, not rewarding it.

The handwriting on the wall was there way before that. Everybody I know who subscribes to Netflix watches films like they’re Crack. They need their Netflix because they tapped out the local Blockbuster years ago. But guess who Netflix gears their advertising toward? Thirty-something couples with children. Why? Because those people have the least amount of time to watch a movie. They’re perfect for Netflix because every day that a DVD sits on your kitchen counter unopened, unwatched is money in Netflix pocket. So their most loving customers get treated like red-headed stepchildren while they schmooze peeps who want to watch The Fantastic 4.

It reminds me of how my sister used to ditch family night in favor of some friend she just met. A month later, the friend would be gone and guess who was listening to my sister whine about what a jerk that girl was. Yep. We were there. Always. It’s crap. If I drink 50 Cokes a day, I want Coke to stick my face on their trucks this holiday season. I don’t want them to come to me and say, “Hey. Can you stop drinking so much Coke so that this Pepsi guy over here can have one and maybe change his mind?”

No! Netflix I made you! I am The Monster you’ve created, Dr. Frankenstein, and now you want to shut me up in the basement while you watch Shall We Dance with your pleasantly moderate wife. Sure, you’ve won all of these customer service awards because you serviced the mob, but not the people who love you. Come on! If Blockbuster ever gets their act together and robs you of your wishy-washy movie watchers, I’m one of the people who will be there to catch your head before it hits the ground.

Geez. I really went off there. Maybe it needs to become our next statement of What We Believe at Spout, but we believe that building more love for films is not counter intuitive to building a business on consuming film.

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  • Nat Dykeman said

    Netflix is being stupid. We run the subscription model at the store, and it’s CLEAR that we do better with the Crackheads than the soccer moms. 1st off, it’s always better to rent to people that return the movies right away. That frees the movie up for more people. Of course, I guess I don’t have to pay to ship the discs around…

    Also, getting more QUANTITIES of new releases is an expensive proposition, that usually isn’t worth it. I will lose money on War Of The Worlds. I will make money on The Edukators…because I didn’t have to buy 20 copies to suppy the initial demand. And, in three weeks, when everyone has seen WOTW, people will still be renting the Edukators.

    So, granted, I our business model is a LITTLE different than Netflix, but it’s almost the opposite here. If I run out of a giant release, it’s like…oh well….try out a smaller flick.

  • lauren said

    As a Landmark Theatre employee, I am also pleased that they decided to reverse their poor decision to discontinue discount cards. I just wanted to mention one other thing that I feel further diminishes the movie going experience that is less obvious to customers - cutting down on employee hours. The Landmark Theatre I work at now routinely has one person running three positions (selling tickets, concessions and cleaning theaters) during weekdays and has cut down shifts on weekends. We now have longer, slower lines, messier theaters and less time to attend to patron concerns. The casual moviegoers (who are generally messier/louder/more cell-phone prone) don’t really see the change, but the core audience complains routinely.

    I’d be surprised if the few bucks Landmark saves in wages makes up for the customer lose