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Why Do People Sign Up For Netflix?
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I don’t understand why people have Netflix subscriptions.
I never rent movies and when I do, I usually turn to the $1 a night RedBox vending machine at my local Giant. For $1.05 (MD sales tax is 5%), I get a recent release that I happened to miss in the theaters (I enjoy going to the movie theater, paying $9, and watching a movie with my girl) and most of the time I can find a coupon online that gives me the rental for free. That being said, I don’t really understand why people sign up for a recurring rental service when something like a RedBox exists (unless it doesn’t in your area). And no, Redbox isn’t paying me. In fact, if you sign up for Netflix through that link above, Netflix is paying me a commission so enjoy my brutal honesty.
Let’s take a look at the cheapest Netflix plan, $4.99 for one movie out with a maximum of two movies a month. That makes it $2.50 a movie with the only advantage being that you can have that movie for as long as you want. How likely is it that you’ll be watching that movie more than once? I’d say the probability of that is exactly 0%, certainly 0% within a one month period. Netflix says they can send out a movie within a business day, and let’s say they’re right, that means the lag time between when you order a movie and when you get it will be at least one business day. So, if you wanted to watch a movie tonight, you wouldn’t be able to unless you already had it in your hand.
Like I said earlier, I’m not trying to validate the RedBox video rental model. What I’m actually trying to do is understand the psychology behind why someone would use Netflix because everything I read about American consumerism seems to point towards RedBox and not Netflix. For example, Americans are impulsive. That means we don’t, in general, plan what we will watch on Thursday the Tuesday beforehand. We plan what we watch on Thursday night at around Thursday afternoon. Another point, Americans love cheap. Redbox is $1.00+tax a night, I will only watch the movie for one night, so it’s cheaper than Netflix. Why pay more just so I can have it sit around on my coffee table?
So, for all those folks out there that use Netflix… why?
(Photo by brymo)
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the cheap plan is a ripoff. I’ve had Netflix for awhile, and I’m pretty sure that I’ve come out on the better end. My queue is over 400 movies. Movies I know that aren’t available or sold at *ockbuster or whatever movie store is around. They also have HD movies, which will be good once i have a HD player. You can also watch movies online, which has come in handy when working on the road.
The dollar movie is okay, but that’s only for new movies.
Forgive me for not reading through all 54 comments and any redundancy that may create!
I use Netflix for a couple of reasons:
1) TELEVISION. I don’t have a TV, so I use Netflix to get DVDs of TV shows. Netflix is way cheaper than cable, and significantly cheaper than renting all those DVDs from a video store.
2) Selection. My reluctance to spend $11 on a movie ticket often means that I miss movies I want to see. Many of them are arthouse films that video stores won’t necessarily stock, but I can always count on Netflix.
3) Rental prices. Last time I rented movies from a video rental store, I paid $12 for two. That means if my boyfriend and/or I watch 5 Netflix DVDs a month on our unlimited 4-at-a-time plan ($26), we come out ahead. We usually do.
And then there’s a certain extent to which the flexibility and convenience of Netflix (as well as their impeccable customer service) is worth paying for.
I use Netflix for a couple of reasons
1) The closest Blockbuster or such is 50+ miles away
2) The local rental store rents for $4 a movie.
3) I can get older, more obscure titles from Netflix
4) We do have a redbox, but it’s only new releases
So, simply put, it’s quite convenient and inexpensive for me
Exactly! Why the heck do so many people use Netflix? Maybe I’m just cheap, but I use the library, which has new releases (yes, you have to put it on hold and wait a while), older movies, and even tv shows. I get to keep them for two weeks, more if no one else wants it, and the only OOP cost is a late fee if I forget to return it on time.
Now, if I lived in an area with a really crappy library system, I might consider Netflix.
I use NetFlix because it’s convenient, cheap and their selection is huge. For $8 a month, I can watch around 15 movies and TV series. And no badgering to return any movies. I thought it was a perfect deal.
As a lot of other people have mentioned- We have Netflix because we don’t have cable TV.
I don’t go to Giant and I have never seen a Redbox machine anywhere I have been- maybe they aren’t in my state?
Our Netflix is $17.95/month and we can have 3 movies out at a time. We get probably 15 movies every month, which works out to about $1.20/movie. And I don’t need to get in my car and go anywhere to pick them up or drop them off, so I save in gas, and more importantly, time. I think it makes financial sense for our family.
we pay 18 a month and go through about 20 dvds a month, so we are already down to less than a dollar a rental- new releases, tv shows, classics, whatever plus, no car usage! then add in the fact that we can watch 18 hours a month online at no charge, and you just can’t beat it!
We have Netflix for the following reasons:
1) Deep catalog. Especially foreign movies and music/concert releases, for us. (We rarely watch recent blockbusters.)
2) TV shows. We don’t have cable and aren’t home enough to watch a weekly show regulary anyway.
3) Convenience and time-saving. Currently, the nearest video rental store is a 10- to 15- minute drive away. Add to that time spent browsing and waiting in a long line, and it could take over an hour just to get the movie. By that time, we’re tired and probably out of whatever time we had to watch something. (Plus, there’s the cost of gas and the guilt about polluting by driving just to rent a video.) We also may not have the time to return the video by its due date. I may keep a video for a while not because I’m watching it more than once but because I’m watching it in installments over four (not necessarily consecutive) days.
4) My husband finds the process of getting and returning the movies by mail to be kind of fun.
5) “Turn of mind.” We tend to think that if we’re going out for entertainment, we’re going to DO something while out, not just get a video from a box and come back home. (Somehow, I find that a touch depressing. Probably it’s just me–I tend to find errands in general to be a little depressing.) Another connection I didn’t make until just now is that I do the majority of my shopping online. I, in general, prefer to select what I want from the widest possible options and then just have it shipped to me.
I get two movies at a time and only pay like $15 a month, assuming I watch them the same day and send them back the next, I normally get 4 movies a week, sometimes more depending on the mail…..at our local movie rental place, their movies are like $3-4 to rent for 5days only. You do the math.
I do like Redbox for the “hey-lets rent a movie right now” moments, but unfortunately, I have recently found myself car-less… which means that I can no longer drive to the Redbox or any other video rental store (none of which are within walking distance) So I signed up for Netflix because they come straight to my mailbox. The selection is unbeatable, and I like the surprise of getting a different movie once or twice a week.
My girlfriend and I watch between 2-3 movies a day between the two of us (we like different kinds of movies and she works from home). So, let’s assume 2.5 movies a day times 7 days a week comes to 75 movies per month. Jesus, really? Okay, 75. Redbox doesn’t have anywhere close to the selection we require, even if we watched every movie they have at the box. Also, the cost of $75/mo. vs. $35.99 we pay to Netflix (plus tax for both) speaks for itself. On top of that, we can keep a cue, watch previews, look at reviews, rate and discuss movies, share movies, ratings and reviews with friends, and watch a lot of movies online (Netflix has thousands of movies stored on their web site for instant watching). Also, no late fees and no going out to Blockbuster/Redbox to return movies.
Wow! So I guess it’s clear why Netflix works for some people. I am one of those people and I use it for many of the reasons cited. I don’t have a TV. I’m afraid to get a TV because I find that commercials make me want to buy things I don’t need. Going to the rental store means going to a shopping center where there is more temptation to buy what I don’t need. And I look at going out to the movies as a special treat where I know the experience itself will be worth the time and money (like getting together with friends or on a date). Especially since movies are expensive and nothing sucks more than paying $10 for a movie that isn’t any good!
I understand now that most people use Netflix for the reasons I didn’t realize before, that is they like the non-traditional stuff (like indie movies) or television DVDs, which RedBox does a poor job of service. I’m not a big movie watching person in the first place and I’m the typical movie consumer, watch the big blockbusters, so Netflix might not appeal to me but it certainly has a following. Now where did those 200k video-by-mail renters go? (between Blockbuster’s loss and Netflix’s gain, there was a negative 200k in total customers)
The loss is for people like you who have become a Redbox customer apposed to Netflix.
I personally use both.
-Redbox for the new releases i want to watch now
-Instant Que for most of what I watch through Netflix (which fits into typical American consumerism behavior)
-video by mail for the rest.
Has anyone heard of a library? I get three or four movies a week there and many are just released. Best of all you can go online and reserve the ones you want or have them sent to a library close to you. The cost is zero.
We don’t have RedBox in our area. But we do have a Blockbuster right next door. With the online membership, I pay $17/month for two movies at a time, unlimited amount per month. When I pass the store on the way home and have finished a movie, I return it to the store. They treat the return envelope as a coupon for a free movie, so I pick out a brand new one, absolutely free. They also send me a coupon for an extra free in-store rental once a month. We watch a movie every night. Your RedBox would cost me $30/month.
For another $5/month, the store has a snack card. Every time you rent a movie in store you get to choose any snack $1 or less for free. Since we are there at least every other day getting movies for free, this is a great deal.
It limits my kids to two movies a month. I don’t have to drive anywhere to get or take back a movie. It has lots of older g rated movies for the kids.You never have to wonder what the next movie is going to be.
Love it.
I really enjoy netflix, and it saves us money. Reason why: we don’t subscribe to cable because of it. Only the best tv shows end up on DVD anyway.
I’m sure someone else already brought this up, but our family enjoys classic movies that we can’t get at Redbox or at our local Lackluster Video or our local WhollyBored video store. So, for us, the subscription fee is not really about saving money or impulse buying…it’s totally about the fact that I can show my pre-teen kids great classics like Ben-Hur, 12 Angry Men, The Music Man, South Pacific, etc.
We watch up to 20 movies a month (no TV/Dish/Cable connection), so the $9.99 saves us up to $11.
I have the 3 at a time, unlimited plan. My household has no cable tv, and without it we get 2 TV channels. We would rather watch movies (or premium cable dramic series like The Sopranos and Rome) than network television anyway. Compared to basic cable, netflix is much less expensive even without the advantages other have mentioned about the deep catalog and convenience. For my carless household, having a movie come in the mail instead of having to walk 2 miles or catch a bus to go to the store is priceless. Although my local grocery store just got one of those redbox things, we have yet to notice a movie in there we actually want to see: they typically have 20 selections of genres we dislike.
Red what? LOL. Never heard of Redbox. Just looked it up though. None in my area at all. Probably would not use it much though. Netflix is great. I can fill up my queue, get it out of the mailbox, and drop it back in the mailbox. It’s called convenience.
That’s funny. I’ve often looked at those RedBoxes and wondered who would rent movies from them. I’ll admit that before I started using Netflix the idea sounded crazy, since I was used to browsing through Blockbuster while deciding what to rent. But now that I use it, I love it.
Like others have mentioned, the great majority of what I rent is TV shows, because it’s great to watch them in big chunks instead of having them doled out in pieces along with scads of commercials.
I also just built a home theater PC which is hooked up to our big LCD TV in the family room. If you weren’t aware, Netflix has an On-Demand function now with about 5,000 titles that you can watch via the internet. We just got finished watching seasons 1 and 2 of the Office.
Honestly I think that’s the future of movie rentals. Once the majority of households have broadband and they work out storage and distribution issues, there won’t be any point in physical rentals. My dream set up is having Netflix’s entire catalog available online.
Convenience. Don’t have to spend gas/energy/time going to the video store and renting/returning movies. The no gas/time thing is the biggest reason for me.
Online queue is easy to manage, add movies you want to see and they will be sent to you. No searching for a movie to be in stock or not.
No late fees, these can add up for some people. Same price per month, this can be worked into a budget easily.
It’s cheap, mine is 10 dollars a month and well worth it. Hardly see movies in the theaters anymore. Sometimes I feel like I’m ripping them off it’s so cheap.
Hi there, this is my first post on your blog. I really like the stuff you write. But, as a big fan of Netflix and also a shareholder, I beg to differ. I really enjoy getting the movies in the mail and then sending them back the same way. I have the $8.99 plan and I really use it.
Netflix has some really good titles for kids as well as grown ups. Not to mention the TV shows that you can get, like the sopranos.
I think in the near future we are going to see an explosion of VOD (video on Demand) and netflix is going to be at the center of it. Keep an eye on the stock.
humbly ,
Macintosh100
P.S. Please check out my website if you get a moment and post a comment. I would appreciate it. Thanks.
I like going to the redbox, I only rent newer movies and the $1 price is a great deal. I would never consider netflix.
If all you ever want to watch is what RedBox has and you’re not interested in maximizing your return, then sure…use RedBox instead.
But for the rest of us, Netflix is a great value…especially when you employ a decent optimization strategy…and even moreso if your mail delivery is early in the day.
(When we get DVDs in the mail from Netflix, we rip them. Immediately. Then we seal them back up in the return envelope and drive them to the post office. Even with our mail coming between 2 and 3 in the afternoon, this USUALLY allows us to get them back in the mail the same day, which means Netflix gets them back the next morning, and we have another delivery the day after. For our $20/mo, we get four DVDs every other business day. In a typical month, we receive 60 DVDs, and it’s only that _low_ because a lot of the time we’re not finished with the ripping until after the post office closes, so it costs us an extra day. If our mailman came in the morning, we’d be up to 80 per month. Then, when we actually want to WATCH something, we have a huge collection of iso files to choose from.)
It simply isn’t POSSIBLE to get that drink-from-a-firehose level of content from RedBox, even if you’re willing to settle for what RedBox offers, because they don’t rotate their selection enough. And certainly it’d be WAY more expensive, even if they did.
that is illegal and u should not do something like that. It is considered stealing and the people who make those movies work hard and desreve to get paid and when u do what u do they lose some money from it
Hey Matt, so what you’re saying is that you are just using Netflix to copy your own DVDs…
I love Netflix. Before Netflix, I hardly ever watched movies, maybe twice a year. I now watch 3 or 4 movies a week, I even bought a projector in order to enjoy the theater experience. I have been on Netflix a year and a half now, and I have become to spoiled that I no longer watch TV at all, nor listen to radio – having grown to really HATE commercials.
I have watched movies that I never would’ve heard of because of Netflix’s rating systems and their “other movies you might like” section. I can watch previews, and read the reviews to get an idea if a movie is worth watching or not.
I have the 3-at-a-time. I select a comedy, a foreign film, and a bombastic action or CGI flick that can take advantage of my 7.1 surround system, so I always have something on hand whatever mood I’m in.
Netflix rules!!!
Oh, and they have pretty much EVERYTHING that is out on DVD.
It works for me. Just sent a movie back this morning.
I use copying to time-shift the difference between when I hear about something I’d like to watch and when I actually watch it. It’s not like I’m selling or even giving away those ISOs.
Selection!
I was amazed to be able to rent, “Tahitian Hip Hop,” not something I’d be able to find in a video redbox in Western PA. Not that I’d rent it again, but I do take advantage of their overall selection.
Netflix’s recent move to provide “unlimited” would have been the coolest thing ever—if it weren’t a lie and a rip off.
That’s right. After you watch your 17 hours of seamless streaming movies, it starts crashing your browser for you. So some folks are not actually GETTING the unlimited hours. Officially, they’re on unlimited, technically however, Netflix prevents it.
This is a classic bait and switch. I have tracked this since the unlimited thing BEGAN.
Consistently, and every month, after 17 hrs of watching seamlessly… it won’t allow any more watching and crashes browsers to prevent users from the promised “Unlimited”.
People should be outraged. Netflix was fine before this, after this, I can’t trust them anymore.
I don’t know why everybody pays for movies at all! The library has tons, literally tons, of movies of all kinds for free. Or if you want a super new-release, it’s a dollar a week around here. It’s seriously a great deal!
I’ve rented movies from Netflix, Blockbuster, Walmart, Redbox, and the library. I agree that Redbox is best for new releases. InsideRedbox.com has free rental codes so I rarely pay for a movie. The problem is that I return the movie on the way home from work. Being hungry, I end up buying more groceries. Of the online rentals, Netflix has the largest selection. However after a couple of months I found that I’d exhausted the list of movies that I wanted to see and was venturing into foreign films. As for the library, in my experience they have extremely long wait lists. Until gas is $5/gallon, I think I’ll grab a snack and head over to Redbox.
I live in a moderately sized town (120,000) in Texas and my only choices are Blockbuster (look up their rates) and Hastings (you probably have never heard of them, just like I’ve never heard of RedBox). I choose Netflix because I get ‘on-demand’ video on my comuter, and I get a DVD sent to me in about two days from the time they receive my last video. If I order a DVD it’s because I missed it an the box office. And if I missed it then, I can wait a few days to see it again.
I don’t know why people use Netflix/Blockbuster either. I check out dvds for free at my local library and get to keep them for a week.
I have a Netflix account. I get 2 movies at a time by mail, but can have unlimited movies sent per month. I also can choose from thousands of movies I can watch instantly online.
I have an Xbox 360 and for the movies in my instant queue that are compatible on my Xbox (over 400 on my list of 500 are), it means I can watch unlimited movies, every single day. I also have multiple TV shows in my instant queue like Heroes and 30 Rock.
I watch movies a lot. Let’s say I watch 1 a day through my instant queue. I also have 3 other family members who watch movies through Netflix. So lets say they get 2 a week on top of my watching. That is 30-31 movies I watch plus 8 per month for them. That’s 40 or so movies total for $13 per month. Not too shabby IMO.
You got the model backwards. With Redbox you do have to plan ahead. You have to plan to have time to pick it up, watch it and return it on time.
For $1.50 more I can have the movie sitting around my house ready when I am , no preplanning necessary. And when gas was $5/gal $1.50 is what it would cost to go round trip twice to pick up and return a movie only 2 miles away. Back at $2/gal I can go 5 miles away. But the nearest Redbox is 7 miles away…
I rent netflix movies for $18.88 including tax. I watch the movie the night it comes in and then send it back in the next day. I rent more then 18 movies in a month so actually the price of the movie is lower then 1 dollar after the first 18-19 movies I watch. Netflix movies do get there in 1 business day which is great. Since I have a plan that allows 3 at a time I will have a 3 movies soon and each day after I get the movies I will send them back 1 at a time so that I always have a movie and always have something to watch.
[...] even with such posts as “Why do people sign up for Netflix?” peppering the archives, we at the BFP household signed up for the $8.99 a month plan that [...]
Let me start by telling I am retired and I have a problem getting around and really don’t like to go to theaters, beside the cost, to see 3 to 4 movies in a months time, even at senior prices, for two the cost is $12 to $14 dollars per movie. With Netflix I have the 3 DVD plan for $16.99 plus FL tax of $1.19 total $18.18. I watch 6 movies a week and sometimes an extra 3 for weekend watching. Another plus with my subscription I am able watch up to 8 select movies a month through my computer.
Once and a while when I don’t get a recent release from Netflix I know by Monday what will be in the mail, THEN I will reserve from Redbox on line after midniht or early morning, and usually catch the new release before it is all rented.
One other thing in favor of Netflix is being able to watch all of last seasons series without having to spend the big bucks to buy the boxed series which most likely will be watched one time. Try that with Redbox.
1.People like me pay a lot more in late fees than one month netflix charges.
2.Iam not a fan of watchng the latest movie always.
3.Likes to watch foreign movies.
4.iam impulsive too…just don’t plan when to watch a movie and hate to make a trip to redbox with my kids!!!so,always a good movie is avaialble online ,when ever you want.
5.mostly convinience.I don’t like running around redbox two times in a two days.I better not to watch anything at all.
“Let’s take a look at the cheapest Netflix plan, $4.99 for one movie out with a maximum of two movies a month.”
What? It’s no wonder he doesn’t understand why people choose Netflix. He doesn’t even understand how it works. It’s not one or two movies PER MONTH. It’s one or two movies AT A TIME. If you receive them, watch them, and return them on the same day and your local center is one day away by first class mail, that one or two DOZEN PER MONTH.
Actually, he was right. You are referring to the cheapest UNLIMITED plan, which is 8.99. If you only pay 4.99 per month, you can only get two movies a month.
I havent seen (while skimming the responses) anyone mention what I believe to be the most valuable feature of Netflix.
Streaming videos that can be delivered 2 ways:
1: direct to your computer for instant view,
2: download to a compatible PVR (there are several models to choose from and they start at around $100)
coupled with the 1 dvd out at a time plan for 9.99 is an unlimited accsess to the Netflix instant movie libraryvia the internet. In essence I pay $9.99 a month to exponentially expand my video library.
RedBox is wonderful if you love New Release movies but it has its disadvantages also. One major disadvantage of Redbox is the selection is very limited and the vast majority of the movies are New Releases because they are limited to the capacity of the machine. The truth is not every movie lover always wants to watch the latest movie released 100% of the time they wish to watch a movie. I do watch New Release movies but I love to watch a lot of the classic movies also so for me Netflix is the best option. If you just only love to watch New Release movies, than Redbox is perfect for you, but Netflix would be a lot better choice on someone who wishes to watch older movies and television shows such as Lost. One thing I do love about Redbox is that it cost only $1/night which is a wonderful price for the latest movies but another disadvantage of Redbox is the possibility of receiving a damaged or unplayable DVD in which you still get charged for.
I like to rent from Family Video. They have 2 movies for $1 for 5 nights on the releases that have been out a while. That’s 50cents a movie. At least where I am it can take 3 days for me to get a new movie from Netflix. For say 30 days a month that gives me possible of 10 movies a month at 89cents each (8.99/mo) (I’m not counting tax here). I can get 17-18 movies a month at that cost going to local video store and not worry about getting it in the mail on time. I have 5 days so the next day I can return the 2 movies and get 2 more.
I completely understand your comments and I do not use netflix. Occasionally I use redbox, but mainly, I use my local library where they have nearly as many new releases as any video store, I can place holds on them to get them when they are available, I can have them for a week and best of all THEY ARE FREE!!!! Yes, FREE. I do not have to pay anything at all. So, in that case, why the heck are you paying $1.05 for something that you could get for free is my question. But, I really do understand the netflix people, too, because it IS hard when you have little ones. Also, I used redbox one night, went to turn in the movie the next evening, the box was full and would not accpet returns! My choice was to either pay for another night I did not need or to drive around looking for another box that may or may not be full! That was very annoying. I’ve also noticed that the search features on the box leave a LOT to be desired. There should be a way for someone to view available movies while someone else is making their selections or returning their movies, even if it was just a rotating view of available movies or something. And there should be something CLEAR from driving by whether it is full and unable to accept returns!
I use netflix because of instant access to movies online, plus new releases via snail mail. I also use the library, Blockbuster and Redbox. But with Netflix I do not have to spend gas $ to go get it or return it. In the end the cost is about the same if you factor in gas.
Red Box actually doesn’t get some of the new releases anymore. WB and a couple other companies cut their ties with RB so good luck getting their movies from one. I even work at Blockbuster and I still have a Netflix subscription. Why? Because regardless of how you look at it, it’s still more efficient than Red Box, and because I can stream the movies. You say it’s cheaper to use Red Box? Wrong. As long as you aren’t keeping the disc for a week without watching it and making sure to send it back immediately after watching it, then you can easily get more discs/dollar than at Red Box.
I won’t even go into the fact that Netflix has almost every movie you could possibly want whereas Red Box only has a small selection (even for new releases its still a small selection) and is even larger than Blockbuster’s selection.
If you want to watch box office bu77$41t, then redbox is fine. But if you have a taste in movies that goes any further, you won’t be able to find what you want. You can probably, however, find it within Netflix’ extensive selection.
Hop off your high horse, buddy, and develop a decent taste in movies.