Sunday, June 13, 2010

Netflix needs to get it in gear

I find it astounding that Netflix is one of the top performing stocks of 2010. Every disc we get from Netflix has major scratches on it. Every one. It's a pain in the ass. I don't know what its licensing agreements from studios look like, but given that we're talking about eminently reproducible digital content, I can't imagine there would be any constraints on Netflix burning new discs and retiring old ones whenever it wanted to. The cost of the disc itself can't be high, and the process for burning it shouldn't be labor or capital intensive.

Netflix is running serious brand risk. I mean, think about it, we pay them $20 a month or some such, we probably get around to watching 2 or 3 videos on average a month. And for this we're getting a good catalog, good fulfillment, but a really shitty end user experience. They need to get on this or they will be the toast quickly.

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