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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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We use Netflix, we ask for it as birthday and Christmas gifts so we don’t pay OOP for it.
For us it’s a convenience factor. It’s a lot easier to stick an envelope in a mailbox than it is to get 2 small children out of carseats, walk into the store that has Redbox, spend a few mintues inside, walk back to the car and strap 2 kids back into the carseat. Then repeat for the return trip.
If I didn’t have 2 children with me at all times, maybe Redbox would be a more attractive option. But for now it’s not.
You can watch movies that are older than 6 months. Lets say you get 2 movies a week, thats 8 in a month, that costs a lot more at some rental company. Plus you get the wide wide selection of movies.
My girlfriend has Blockbuster Total Access. For $24 a month we pretty much get anywhere between 8-12 movies A WEEK. Break that down: Say we were to get 8 movies a week, multiply that by 4 weeks in a month. That’s 36 movies a month. Go to blockbuster and rent a movie it’s $3.99. Even your $1 movie rental can’t be that.
I guess then the question comes into play “how many movies is too many movies?” In my case, I’m a movie fiend/fanatic/psycopath more than 8 a week is enough for me.
I’ve seen the RedBox kiosks, but not very often. For me, Netflix is all about selection and convenience. Netflix has a massive anime collection (I’m a dork, so what), classics, and TV shows. Does RedBox have any of that stuff?
There’s also nothing like having a movie waiting for me in my mailbox when it’s -45934498 F outside.
Netflix doesn’t serve impulse buyers and isn’t really trying to. In fact, the basis for the Netflix model is that there is a significant market for video rentals that isn’t purely an impulse decision, or at least the decision of which movie to watch isn’t an impulse decision (so you get the movie on tuesday but don’t decide until thursday that you are going to watch it). You also left off the advantage of not having to go to the store to get the movie and the fact that the selection for netflix is usually better than what you can get in stores (especially, in my experience, compared to the Redbox vending, but even compared to going to a store like blockbuster).
I tend to agree that the lowest level plans aren’t always cost effective, but at the higher levels for people that rent movies the cost is fairly close to the $1 + tax per movie (I think we are at about $1.5 per movie on our current plan).
In my case, I’ve got a 1 year old at home so going to the movies is even more expensive than a typical couple ($20 for me and my wife just to go, plus another $10-20 for a baby sitter, assuming we can find one). So for about half the cost of 1 trip to the movies we can watch as many movies as we want (with the unlimited plan) every month when we want and we don’t even have to drive to the store (and with a kid, driving to the store can be a hassle) to do it. And since we don’t go to the movies, it isn’t very hard to find a fairly large list of movies that we missed in the theatres.
You left out Americans are lazy. I’ve used RedBox before, and it has always meant standing in line while several others scroll through the movies having a hard time deciding which movie to pick. Sometimes in the freezing cold. Then, I have worry about getting it back the next day, which often doesn’t happen, so I get charged for a second day. Then, I have to endure the same wait in line, just to turn the dvd in. It’s much easier to just get a dvd in my mailbox.
And, I don’t have to pick a video based on what is left in that machine. I can spend 5 minutes at the beginning of the month looking at upcoming dvd releases, pick the ones I want to watch, and enjoy them as they arrive.
And, as others mentioned, the online selection is much better.
I love the Netflix queue and their rating system. They also have some social networking stuff built where you can see how your friends rated movies and what they’re watching, which gives me some ideas on what to watch. And they also have streaming movies – on the 3 out at any time plan, you get 1 hour of streaming for every $ the plan costs, so 16 hours a month streaming direct plus the regular mailed movies. And like the earlier folks said, with a child, it is hard getting in and out to a Redbox and for the amount of movies that come through, we probably pay the same – our child watches probably 8 a month on her own, not counting what the wife and I watch.
Let’s also keep in mind availability, the burn factor and the non-mainstream factor of movie rentals. RedBox is not available in all areas, which means not everyone can use RedBox, however, everyone does get mail which gives Netflix a wider user base. Some people also like to rent DVDs just to burn them so they can keep them afterwards. With a monthly subscription and unlimited rentals, Netflix will appeal to those people far more than RedBox. And lastly, and to my mind most importantly, some people like myself and Him above may have esoteric tastes that don’t fit the recent release model of RedBox. What if you only want Anime? Or if you like TV shows from the 80s? What if you’re looking for foreign movies, classic movies or kung-fu action? The RedBox model doesn’t allow for these type of renters, so their model isn’t as flexible as Netflix for people who are interested in more than just the latest releases available.
And as for the impulsiveness of Americans, well Netflix may not cater to the impulse buy nature of some people, but it DOES allow people to create a rental list that is automagically fulfilled. Create a list of all the movies you want to see and sooner or later each and every one will wind up in your mailbox. Always wanted to see Cleopatra but never have? Add it to the list. Never saw SAW? Now you can! Want to watch all of Jackie Chan’s greatest kung-fu classics? Boo-Ya! You got it!
Doesn’t that sound nice?
I just posted a note on my blog a couple weeks ago about why we stopped the rental store and switched to Netflix. We don’t have cable or satellite and watch a lot of movies. Access to the hundreds of thousand they have with 2 day turn around is VERY nice for us.
That being said, I understand everyone doesn’t watch movies like we do. If you only watch new movies and not very often, then it’s not worth it. But we watch several a week and like re-watching those old classics and 80′s movies that you don’t always find in Redbox or any other video store.
HD-DVD titles… not sure if RedBox offers those but not the one near me. Plus foreign titles too. Keep up good work on site. Plus like one of other people mentioned I don’t have cable or satellite either so 1-2 day turnaround works out great.
Also…
With blockbuster online, they have a solution for the “impulse” rental. They provide in-store rentals when you return one of your mailer movies to the store. They also provide at least one coupon for a free in-store rental per month. With these two features, you can almost be guaranteed you can drive to the actually store and pick out a movie that suits your tastes at that exact second (if you so choose).
With my blockbuster membership, I can also choose two previously viewed DVD’s (priced under $9.99) for free. If you add that in to the cost analysis posted by earlier commentors, online memberships make a lot more sense (always depending on your level of desire to watch a lot of movies)!
I really enjoy my blockbuster online membership and really wouldn’t have it any other way now.
We use Blockbuster, which is much better than NetFlix as far as the value. We can even maximize our money by taking our movies in to the store and trading them for a new one. Also, they offer Blu-Ray (which Red Box doesn’t).
No RedBox here and Blockbuster on my street charges $4 to rent a movie. For $8, I get as many as I can watch every month from Netflix, and can usually get what I want. It’s really a no-brainer.
We’ve used both netflix and blockbuster. I like that blockbuster movies can be returned to the store and pick up another movie there. We went through a period of being movie watching fools, which wan’t a good thing to be honest. Both have been cancelled for a while now. My father-in-law has the blockbuster thing and pretty much if we want to watch a movie we call him up, he either has it or can get it, and watch as we feel like.
I’ve been meaning to try the Redbox but just haven’t. I always forget to stop and use the free code, ours are located at McDonalds and we’ve been avoiding that like the plague.
I can understand why people do netflix/blockbuster though.
I’d say the biggest reason we rent DVDs by mail is the selection. I love television shows, but I hate commercials, so it’s easier to see them all on DVD (plus we have only the basic-est of basic cable, so this way we get to see all the HBO and Showtime shows, too). My husband and I watched Forbidden Planet last night. I doubt that would be in any RedBox.
We have two reasons we use netflix (the 3 DVD at a time plan).
1. Location. We live in a VERY rural location. I’m talking BFE, where our grocery store is 30 miles away. There is a very small video rental place in town, but they have piss poor selection and charge a fortune. So it is very easy to just go online, pick a movie or two and have it delivered.
2. Selection. My wife is fine with just watching popular movies, but I’m not. I love the documentaries and science/educational titles that you can really only find through a service like Netflix.
I love Netflix. I do like to plan in advance what we’ll get / watch, I love the queue system, and I love the ratings / recommendations. Plus, my husband and I are big film lovers, and we really do watch a lot of movies, so Netflix for us is a bargain.
1) Its less expensive than Blockbuster, even with the one at a time unlimited.
2) We don’t watch cable TV, so we watch movies on DVD once or twice a week. Well worth the $10 expense.
3) Selection. Netflix has just about everything, that a kiosk like Redbox and Blockbuster could never match. We enjoy foreign films that Redbox/Blockbuster isn’t going to supply for the average mainstream American.
4) We don’t want to get in the car and make a special trip just for a movie.
5) The watch now feature allows us to watch movies from our Internet, which is hooked up to our home theater.
6) The queue is a simple and elegant way of saving movie titles that I’d never remember to rent later on.
7) Because I want to!
I don’t know if anyone answered his question (im at work and don’t have time to read all of the comments) but I happen to think that Netflix is a really good option. Anything is better than paying full price.
Yes, it sounds cool that one could go to their local Giant supermarket and rent for $1.00 but its for only one night.
I don’t know how others view their movies but during the work week we barely have time…don’t get me wrong, we do catch a weeknight movie rarely. But for those that like to hold on to their movies for more than one week, Netflix is good. You can hold it for more than a day without worrying about late fees and to sending it back by mail isn’t pretty bad.
Now, I do believe once a person goes pass the $5-10 bucks a month, there will be a significant of spending because we tried the $18.00 per month for unlimited dvds. Initially, it was fun and we thought we were getting a great deal but it would take us weeks to watch the 3 we received. So, I think as long as you are sure how much dvds you will actually watch, you should be ok.
It is a convenience thing. Going to redbox is still a trip somewhere when Netflix pushes the CD to my doorstep.
Had netflicks, swithed to blockbuster total access. Always get the new releases as they come out and get movies that you can’t get from machines.
Also like to get the HBO, Showtime series from past years like Rome, Sapranos, Weeds. Love the quick service and the total availability of movies
TV shows on DVD.
If I can go through 4 seasons of Star Trek: Voyager in a month with out paying $400 dollars, or renting each DVD individually….
I’m no fool.
I used RedBox when I lived in the DC area. It was okay.
Now that I’ve moved I use Netflix & it’s great. For 16.99 a month I get unlimited movies, 3 out at a time. In the last 30 days we watched 20 movies, for a cost of .85 cents per movie. Plus I help save the environment w/o having to waste gas driving 2 times per movie (pick up & return).
I mail back movies on Saturday & Netflix ships a new release on Monday, which I get on Tuesday (the same day you can get it from your vending machine).
We make a list of movies that we want to see & they automatically ship them to us.
1. Deep selection (if you don’t care about that, then you’re missing *a lot* of great films)
2. Longevity (I can take a week to send back a film)
3. Ease (Movies I want to see are always either in my home or on the way in the mail…no wasted trips to a store to find out something is out)
4. Cost (I watch around 2-3 films a week. Sure it may cost less than $1 per film, but there is a price for convenience too.
Give me a break. You seriously couldn’t understand the appeal of Netflix to some people?
I mean, it doesn’t take an empathic genius to realize that some people want to see movies (for me TV shows) that Redbox, or even rental stores, don’t carry. Nor does it take any sort of special wisdom to see the convenience of Netflix.
Methinks this is a “attack something popular and get hits” post.
1. Mailboxes are everywhere, but video stores/Redboxes are only in a few locations.
2. I like watching things besides the latest Adam Sandler movie.
3. I can never remember what I want to see when I’m at the video store, but if I hear about a movie that sounds interesting, I can add it to my Netflix queue with a few clicks and I’ll see it eventually.
4. Even though I may not watch a movie more than once, the fact that I can watch and return it “whenever” saves a lot of money in late fees, and means I don’t have to watch something tonight if life gets busy.
Mailboxes are really rare here anymore due to terrorist issues and the post office is less convenient than video store. For people that would otherwise spend a lot on cable premium channels, want a broad selection, and watch a lot, it can make sense. At 2 a month (and sometimes even that is too much), at $1.50 each, it makes little sense.
My boyfriend & I share a 2-at-a-time Netflix subscription, at $13.99/mo. We split the cost, and manage separate queues.
“…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?” Answer: highly unlikely; I’ve done this only one time that I can think of with a rented movie.
However, your statement assumes that the convenience of being able to keep a movie as long as you like is limited to the luxury of being able to watch it again. Early last week, The Virgin Suicides arrived from my Netflix queue. Because it is a favorite of mine and written by Sofia Coppola, I was looking forward to introducing my boyfriend to it. We planned to watch it on Thursday, but that plan didn’t pan out … then he went to Denver to watch his favorite team win the World Series and … wouldn’t you know, it was the following Tuesday night before we finally got to watch it.
No late fees. No watching it by myself and wishing I could have watched it with him before the due date. No returning it without watching it and thereby wasting my money. Plus, he dropped it in the mailbox this morning, which means I’ll have the next one from my queue by Friday – without having to lift a finger.
“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.”
I doubt you’ve never gone to the rental place with a specific movie in mind. I enjoy looking forward to the film that will arrive next. I also enjoy that as soon as I get a film recommendation, I can pop that film in my queue instead of forgetting the title a day later. Plus, the turnover of movies through Netflix is such that I can drop a movie in the mailbox in the morning and still have time to change my queue, if I wish, before my next film ships. Ah, the power of the internets.
We use Netflix because for $17 a month we do not have to worry about late fees. The video store in town charges $3 a night for a video, with a $3 late fee per night. Now we can get 3 videos at a time and watch them when we want. I think I actually save money with Netflix.
Why would anyone buy a book from Amazon.com when they can buy today’s bestsellers from Wal-Mart at a discount?
I subscribe to netflix because I’m too cheap and broke to get cable, so Netflix is a much more cost-effective option for me. I pay $16.99 a month (instead of the $50 a month Comcast wants to charge me for basic cable), and get to watch the movies and tv shows that I want to watch when I want to watch it. And also, the convenience, no late fees, and huge selection are a huge plus.
I was just looking at a Canadian alternative called ‘CanFlix’ which also includes video games for rent. I was looking at the 4 movie plan for $24.95 per month as it would allow us to rotate through 2 games and 2 movies at the same time. The games we like we can keep for a while and the games we don’t can go right back. $24.95 is still half of what cable would cost and movies and games don’t have anywhere near the advertising of TV. In fact, we only have rabbit ears on the TV and my S.O. wants to get cable for the winter. I was thinking of this as an alternative.
Netflix is also more aspirational than RedBox.
People can put movies in their queues that they feel that they “ought” to see, and feel the anticipatory glow when they see those movies in their queues, even if they never actually watch them.
There was actually a study about it awhile back.
I pay $5 a month for Netflix. I lose money on it, because it takes me awhile to watch the movies that I get. But the selection is SO much better, and the queue features so engaging, that I vastly prefer that to dealing with RedBox and its “stock” that is half direct-to-DVD shlock.
Like some people have said: TV shows.
Which is also the reason why I didn’t like Blockbuster Total Access because they always send the DVDs out of order. Like, I would get disc 2, 3, 4 before I would get 1 and it would drive me nuts and the stores didn’t carry a good selection for TV shows either.
I don’t use either service, but the one RedBox I saw didn’t really have much new in it. Maybe the RedBoxes are better across the Potomac.
I have never felt for a minute that my money was wasted on Netflix. Prompt service, huge selection, convenience, what more would you want out of a video service? If anything I think going to the movies is a waste – $10 apiece to watch something I can watch for practically nothing in the comfort of my own home. My opinion is that cable/satellite TV and movie theaters are the real ripoff – Netflix is the sensible option, hands down. Redbox is a poor alternative – stand in line, don’t have what you want, only films from the last couple of months, only American blockbuster junk, no foreign films, prisoner to the store hours. I don’t even see a comparison, personally. I love Netflix.
redbox, what’s redbox?!?
- i don’t pay 9 bucks a movie, i pay $11 or $12. and while i love to go out and watch a movie with my girl, it’s not exactly frugal living.
- i love movies. independent movies, blockbusters, international films, hong kong flicks, japanese thrillers/horrors, movies in tagalog, bbc tv series, etc. netflix is like the library of congress for dvds.
- it’s cheaper than cable, which i don’t have.
- i return a movie in the mail, my new one is mailed out the next day, and i get it the following day.
- i get great ideas from “netflix friends”
- blockbusters in nyc have russian breadlines. thanks, but no thanks.
jim, really now, was this a hypothetical question????
@Thermopyle – I am thinking it is more along the lines of a “stick an affiliate link at the top, and have the commenters describe how great the product is” post.
Actually, I’m curious why people sign up for the service. Given Blockbuster’s recent numbers and Netflix’s “boon,” the number of total renters fell by 214k in the industry (Fool.com) so my question isn’t that ridiculous or just about generating a $7 affiliate sign up.
i know, i was just kidding around- because it inspired a lot of netflix positive comments!
Well, I also like Netflix’s instant delivery features. For example, if I missed Heroes I can watch it online at Netflix with less lag than NBC.com. Also they have past seasons of The Office which I can just watch online. It is definitely cheaper than my local Blockbuster’s
I’m not familiar with the Redbox Kiosk system, but I love Netflix. I gave up cable television two year ago. For $8.99/month I can get unlimited movies, one at a time and 9 hours of streaming video anytime I want it. If I’m quick about returning the DVDs, thats 1-2 per week, lets say 6 per month. Thats $1.50 per DVD, plus an additional 9 hours of streaming video for free. The watch instantly selection doesn’t include all of the Netflix library but I’ve been able to watch TV shows like the Offfice and Law and Order… even Evil Dead when I wanted a halloween movie. All in all its a great deal for me.
We don’t use it, mostly because our local public library totally rocks, and we have most ‘recent releases’ available to us for free if we’re willing to get on a short waiting list, and a lot of other titles for free online through the library system. (Why would anyone use Redbox when you have the public library?!) But under different circumstances I’d consider it. The reasons could be:
1. Kids. When you have 3 kids toddling in different directions, taking 15 minutes to get in or out of the car, ask that question again.
2. Homeschooling. They have a lot of Nat Geo or other educational stuff that’s not just the latest release, and you’re planning your lessons ahead of time. I suppose that would go with anyone who’s watching a genre outside of the traditional “latest release” realm, not just educational stuff. People who are focusing on foreign films, anime, documentaries, classics, whatever. Not everyone watches only the latest blockbusters.
3. Location. I’ve never heard of such a DVD rental set-up as Redbox. A heck of a lot of people live out where that sort of thing isn’t available, or is out of the way. Ordering online is the only way many people have access to more than a narrow selection.
4. Variety of needs. Your household sounds like it consists of 1 type of movie preference. Ours consists of one type for the grownups, one for the little kids (who will watch the same video 10 times in a week if you let them), one for the adolescent, one for the educational topic we happen to be studying…. We wouldn’t just watch a single ‘new release’ on a Friday night. We’d want several different movies for the different ages and tastes in our larger household.
Intelligent question, though. Why do people pay more for something you have found for much less? Our (or their) circumstances are different from yours.
Netflix is great for users with discerning taste. From what you say, you are really only into M&M’s (Movies for the Masses). Netflix specializes in many television shows such as Earth:Final Conflict, Andromeda, Buck Rogers, V:The Miniseries. Exercise dvds such as Rodney Yee Yoga, The Dalai Lama, difficult to find Native American Titles such as The Doe Boy. Scientists such as Carl Sagan, Stephen Hawking etc, etc, etc…..I bet you won’t find those titles at GIANT.
One dollar is one dollar too much for most M&M’s IMHO!
We enjoy our urban cable service – with Turner Classic Movies/Sundance Channel/IFC and the other standard movie channels. I find I watch a lot more exotic pix when they are in front of me on cable – like French movies – I like to browse, because by doing so I run across things I never would have thought of, even if I had seen it on a list….I don’t know how many movies we watch a week – almost one per day! And sometimes even triple features.
I live in the sticks. The nearest place to rent a movie is 12 minutes away and anything that’s come out in the last 9 months is going to cost $4 to rent for two nights.
Meanwhile, I use Netflix, pay $9 a month for one movie at a time and can watch about 9 movies in a month. Which equals your dollar a movie and I don’t have to stress about getting back to town in time to return the movies.
My ideal rental situation was back when I was living in a small college town. There was a locally owned video store two blocks from my house that would give us 5-day rentals for $1-2 (plus a frequent renters punch card), and had the greatest selection of videos I’ve ever seen. Tons of anime, foreign films, sci-fi tv, stand-up comedy…
Now I’m a broke grad student in the big city. I walk everywhere, and the only rental option within walking distance charges $4/rental and doesn’t have a single anime title in the entire store (I know, we looked). Our grocery store doesn’t rent movies. I just checked, and the nearest RedBox is not even in the same city. So Netflix is a no-brainer.
I’m surprised more people haven’t mentioned Instant Viewing. The selection is pretty limited, but it’s still better than our local video store (and definitely better than RedBox), and at $4.99/mo, it adds 5 hours (3 movies or lots of TV) to your quota. That’s 5 movies per month, which brings it down to $1/movie (plus tax).
Yes, $1/movie. No more expensive than RedBox.
Hmmm…. For Tammy (my wife) and I it’s TV show rentals. There’s tv series that we’d like to watch (CSI, Lost, etc for her, Anime tv shows for me) which we’d love to watch once… but don’t want to pay $40-60-100 to own. Netflix even lets me grab an entire series and put the whole thing on my queue at once – once I watch disk 2, disk 3 is on it’s way.
We also like the ability to split my account’s 4 rentals between two users, letting her get her stuff and me my own without trouble.
Netflix makes sense because it offers zillions of titles.
Redbox only offers a couple recent “mainstream” movies, which these days is great with things like Big Momma’s House 11…
If you watch lots of movies (or have family members/roommates who also like movies) Netflix is a clear winner.
Because the only video store in town is owned by the guy who owns the building my restaurant is in, and he’s a scum-sucking asshole and I don’t to give him one more dime than I need to.