My Netflix Journal: 7/05 - 8/05

September 4, 2005

August 27, 2005

HackingNetflix: Biased, Unbiased Or Shill Blog? [bookmark]

This is fairly simple.  HackingNetflix is really a Netflix investor's fan club and I'm surprised web site owner Mike Kaltschnee didn't use the domain NetflixFanClub.com which is available by the way.  It seems my opinion on Netflix provokes Mike into writing, "I challenge you to be fair in your writing."  Mike says his goal, "is to be a 'fair and balanced' source of information" doing his best to report the "good and the bad about Netflix, Blockbuster, Amazon, etc."  However, Mike K. doesn't practice what he preaches.  I've gone through Mike's blog and reviewed all his comments concerning Netflix competitor Blockbuster Online.  Of the 143 comments Mike has made about Blockbuster since November 1, 2004...

Mike hasn't reached his goal of reporting "fair and balanced" information yet he challenges me to be fair.  Furthermore, Mike's unbiased posts are often catalysts for competitor bashing by Netflix shills.   Here's an interesting question.  Why is the Vice President of Business Development for Index Stock writing about Netflix?  How much does Mike Kaltschnee make?  I see the average salary for a VP is $112,000.00 dollars.  What's his relationship with Netflix?  Why does Mike place banner ads on his website?  I don't think he's hurting for cash.  Maybe "fake blog" isn't correct.  How about blog with a hidden agenda?

My opinion may be bias yet I always post my monthly rental statistics.  Many times these statistics are favorable towards Netflix yet I still post them. 

Quote of the Day

Nobody likes to feel deceived

August 23, 2005

Netflix Has A Foreign Parent [bookmark]

I was looking Netflix up on Reference USA and discovered Netflix has a "foreign parent."  A foreign parent is defined as, "The first person, or entity, outside the United States in a U.S. affiliate’s ownership chain that has a direct investment interest in the affiliate."  Does anyone know who this foreign investor is?  I'd hate to find out I've been dealing with a company supporting terrorists.

August 22, 2005

Availability Issue At Blockbuster Part 2 [bookmark]

As a follow up to my earlier post, here's what's happened to the titles in my Blockbuster queue.

1. Fighting Spirit vol. 4 was immediately available at Netflix and rented from Netflix.
2. Chrono Crusade vol. 6 which was released 7/21/5 is still listed as "Coming Soon" one month later.
3. Ghost In The Shell: Stand Alone Complex vol. 7 was shipped fairly quickly on 7/26/05.
4. Requiem From The Darkness vol. 4 was moved to my GreenCine Queue as it is available now.
5. Get Backers vol. 7 released 6/28/05 is still listed as "Coming Soon" almost 2 months later.  I plan on moving this to my Netflix or GreenCine queue as soon as possible.

I find Blockbuster is the weak link in the chain when it comes to availability as compared to Netflix and GreenCine.  I hope Blockbuster fixes the problem before their price increase goes into effect.   I had to add two titles to my Blockbuster queue so I could have more rentals available.

At this time, I have one "very long wait" at Netflix, no waits at GreenCine, and only three titles "Available Now" from Blockbuster.

August 18, 2005

Netflix Use Of Spyware Undisclosed To Subscribers [bookmark]

Netflix makes no mention of tracking subscribers' web site activity in their however, their web site claims rights to spyware on their page that tracks subscriber's web site activity: "Netflix is licensed under United States Patent No. 5,717,860."

August 15, 2005

Netflix Settles Over Infringement Of Spyware Patents [bookmark]

BTG plc, a British IP solution firm, has "dismissed all claims against [Netflix] and granted Netflix a non-exclusive license to patents covering technology for tracking the navigational path of a user through the internet."  The amount of the settlement was undisclosed.  The spyware was created by Infonautics with patents # 5,717,860 and # 5,712,979.

Related posts:

Netflix Fan, Netflix, & Spyware
Netflix & Spyware:  "Where's The Proof?"
Blockbuster Traffic Rerouted To Netflix!
Netflix Reroutes Traffic Through Security Holes!

August 14, 2005

Netflix Feature:  Drag & Drop Your Movies To Oblivion [bookmark]

I've experienced enough problems from Netflix's web site to know better than using their fancy features.  Now I read I was right not to use their add-to-queue-drag-and-drop feature:

Here's a copy of the script from Netflix in text form.  Here's a to the script itself on Netflix.  Netflix also causes errors on Opera web browsers.

August 12, 2005

Netflix After 2 Years [bookmark]

It's been 2 years since I joined Netflix and here are my statistics so far.  First, using my billing and rental history as well as this journal itself I was able to chart my 2 year rental history:

Click to enlarge

I noticed each time their was a change in my subscription cost a pattern in my rental frequency occurred.  During each change there was a peak in the number of rentals I received followed by a gradual decline.  In the first instance, I had upgraded my account to 8-at-a-time.  Immediately after the change, I was able to rent 43 DVDs.  Then Netflix sent me progressively less rentals until they raised their subscription cost.  Again, another peak in the number of rentals occurred followed by an even sharper decline.  In January 2005, I complained about my service and received a 25% discount, however I changed my plan back to 3-at-at-time the following month.  Initially, Netflix sent me 17 rental after changing my plan.  Again, the number of rentals gradually declined.  Because of my complaint sent to the Better Business Bureau Netflix gave me 2 months free service.  When Netflix began billing my credit card again my number of rentals peaked again followed by another decline. 

Note:  One facet not shown in the graph is the fact I try to rent much more than Netflix delivers.  This is one of the reasons I also subscribe Blockbuster and GreenCine.

*A total of 636 rentals delivered. Twenty-four rentals were broken. One rental was unplayable.  Four rentals were the wrong title.

See my stats page for more info.

Netflix Bloggers Punish Customers [bookmark]

A familiar call comes forth from all pro Netflix Bloggers:  Pay your subscription fee but don't rent too many DVDs.  First, it was Carl Cravens of Netflix Odyssey who wrote, "Waah, waah, I can't get more than twenty discs a month!"  Next, accuses me of renting so many DVDs I must be "burning" them.  Finally, writes, "Netflix doesn't 'throttle' anyone except people who are trying to take advantage of the system and get more than their fare share."  Am I getting more than my fare share?  I always thought the Netflix motto was "Rent all the DVDs you want."  Take a look at Netflix's .  You'll find the word "Unlimited" on each plan except one.

August 9, 2005

"Nearest Netflix Shipping Facility" Part 9 [bookmark]

Here are instructions on making a complaint to the United States Postal Service if you have experienced a lengthy service delay because you used a "Nearest Netflix Shipping Facility" envelope.  Complete the Mail Fraud On-Line Form.  If your not sure how to complete the form click here.  If Netflix has told you your envelope would be delivered to your closest distribution center and it was not--that's mail fraud.

Here's an example of changing the address and postnet barcode on a Netflix envelope.

"Nearest Netflix Shipping Facility" Part 1, 2, 3, 4, 5, 6, 7, 8

August 8, 2005

Amazon Hiring For Online DVD Rental Service [bookmark]

Amazon is posting job openings specifically for an online DVD rental service at their Seattle, Washington office.  When asked if Amazon was launching a DVD rental service in the U.S. they responded, "stay tuned."  Reed Hastings is a firm believer Amazon will not compete against him in U.S.  Won't he be surprised!

Read: Amazon Eyes DVD Rentals

Blockbuster Broken DVD # 5

Today I received Dragon Drive vol.8 broken which didn't make me overjoyed although Blockbuster sent a replacement out late this afternoon--something Netflix does not do.

August 6, 2005

Netflix Investors Lose Lawsuit [bookmark]

Last year, Netflix investors suffered a major financial loss.  Last year, Netflix stocks plummeted 40% in a single day!  Less than 2 weeks before Netflix announced its company was financially sound and there was no reason for investors to worry.  What investors didn't know was Netflix used a formula that inflated their subscriber numbers by as much as 30 percent.  Remarkably, Netflix executives, including CEO Reed Hastings, sold huge amounts of shares right before the company posted a unprecedented subscriber loss of 5.6 % during the 2nd quarter of 2004.

Netflix investors contend 1) Netflix inflated their subscriber numbers 2) Netflix executives knew their subscriber numbers were inflated and cashed in their stocks before announcing the dismal 2nd quarter 2004 report.

Read Article:

Fraud Claims Against Netflix Over Customer Attrition Dismissed

August 4, 2005

Netflix Fan, Netflix, & Spyware [bookmark]

It appears found out about Netflix's use of spyware before I did.  She wrote an inquiry to Netflix back in January 2005 asking them about an article written by PC Pitstop implicating Netflix as a Claria (spyware) client:

Netflix refrained from replying on the subject but has since then admitted their use of spyware to boost sales.

(update 8/11/05)  Claria's SEC filings for 4/2004 list Netflix numerous times as a client.

Related posts:

Netflix & Spyware:  "Where's The Proof?"
Blockbuster Traffic Rerouted To Netflix!
Netflix Reroutes Traffic Through Security Holes!

August 1, 2005

Netflix & Spyware:  "Where's The Proof?" [bookmark]

John, from Richmond, Virginia recently posted there was no proof in Netflix's spyware involvement.  I pointed out Netflix's acknowledgement of using spyware as reported by Adware Report (July 6, 2005).  The Wall Street Journal (June 30, 2005) also reports that Netflix is one of Claria's (spyware company) top clients:

The Redwood City, Calif., company says it had more than $100 million in revenue last year, from advertisers that included Cendant Corp., FTD.com Inc., Netflix Inc. and Orbitz Inc. Despite concerns about the practice, adware is remarkably widespread: Claria says its software was on more than 40 million PCs at the end of last year.

You can bet I'll be digging up more information on this story.

Previous posts:

Blockbuster Traffic Rerouted To Netflix!
Netflix Reroutes Traffic Through Security Holes!

July 31, 2005

July In Review [bookmark]

Services compared using rentals "returned" or "received" during July 2005.  Cost/rental & turnaround computed using Price/Rental & Turnaround Calculator.

If I add Blockbuster's 2 free in-store rentals used for Akira and Tokyo Babylon my cost per rental would be $0.94. 

*Correction 2/10/06: prices mentioned were inaccurate, Netflix, $1.53; Blockbuster, $1.29; $2.54. Results exclude broken and missing rentals.  See data.

July 25, 2005

Netflix Abandons Deceptive Advertising

If you visited Netflix's home web site in the past you would have seen "Rent all the DVDs you want."  Recently, Netflix has abandoned this deceptive phrase from its home page.

Old page includes "Rent all the DVDs you want"	New page omits phrase

Netflix stockholders are not happy with this change as it entices less customers.  Did you click on the add above only to be sent to a Netflix competitor?  Netflix has been doing this to their competitors for years.

July 21, 2005

In Case of Throttling... [bookmark]

It's been 6 days since I turned in a Netflix rental yet no replacement has arrived.  Blockbuster sent me two movies yesterday--the only movies I've received all week.  While waiting for my rentals to arrive I watched some of my purchased anime that I haven't seen (3 InuYasha DVDs).  I haven't purchased any new anime for some time now due to a lack of cash.  Yesterday, I decided to restock my supply.  I went to Media Play armed with $20.00 dollars worth of gift certificates and a triple points coupon.  I purchased InuYasha vol 26-31 and preordered vol 32-33.  Last week, I used my 2 free blockbuster rentals for Akira and Tokyo Babylon.  The 2 free rentals from Blockbuster really come in handy.

July 20, 2005 [bookmark]

Reed Hastings & The Hispanic Agenda

Most Hispanic Americans view California's proposition 227 as a threat to their culture.  However, the decision influencing the lives of Hispanics was made by a Caucasian majority instead of those who would be mostly effected.  Netflix CEO Reed Hastings was one of those Californians who pushed for the passage of proposition 227.  Well, "The results are in. Researchers have recently concluded, 'Prop 227 type programs have resulted in virtually no closure of the achievement gap.'"  Just who's side are you on Mr. Hastings?

July 19, 2005

Blockbuster Traffic Rerouted To Netflix! [bookmark]

Users infected with Claira (formerly Gator) will be redirected to Netflix when they click on Blockbuster advertisements.  Results from Benjamin Edelman's page show potential Blockbuster customers are diverted to GameFly and Netflix.  Edelman also claims Claira "can even display [client's] ads when users visit competitors' sites."  The question is, who paid Claira to do this ;-)

Links:

• Documentation of Gator Advertisements and Targeting - Note: scroll down to "Testing".  You can type in any web site and it will be checked if traffic is being diverted from it.
• Who's Stealing Your Web Traffic!
• Is Gator Highjacking your Banner Ads?

Response From GreenCine

I emailed GreenCine yesterday to inform them Netflix is stealing their customers with spyware although they were already aware.

Netflix Continues To Throttle

I returned three rentals:  one rental last Friday 7/15 and two Sunday 7/17.  I live one business day from Lansing's Netflix distribution center where the envelopes were addressed.  Netflix received one rental Monday--its replacement was supposed to ship yesterday but Netflix delayed that until today.  Netflix recieved a second rental today but is delaying its replacement until tomorrow.  Finally, Netflix is pretending they haven't received my third rental as it remains in my queue.

Is there anything honest about Netflix?  There's their bogus customer satisfaction survey, stealing customer from GreenCine and Blockbuster with spyware, and finally swindling customers with their "inventory allocation and delivery processing" system.

Availability Issue At Blockbuster [bookmark]

I have 8 movies in my Blockbuster queue at the moment.  Five of them are marked "coming soon."  Indeed some are new releases yet others are rentals that Blockbuster doesn't have at the time.  Both Netflix and GreenCine have Fighting Spirit vol. 4: Dream Of A K.O.  Chrono Crusade vol. 6 will be released on DVD 7/21/05.  Ghost In The Shell: Stand Alone Complex releases 7/26/05.  Requiem From The Darkness vol. 4 is available at GreenCine and Netflix.

Availability has not been an issue for me as I subscribe to 3 different plans.  If one service doesn't carry something or has long waits on certain titles, I can use the other services to get it immediately.  Currently I have 2 titles at GreenCine with long waits and one title at Netflix with a "very long wait."  If I notice a title has been sitting in my queue for a long period, I move it to another service where it's immediately available.

July 18, 2005

Netflix Reroutes Traffic Through Security Holes! [bookmark]

Benjamin Edelman has discovered that Netflix uses spyware to reroute traffic from its competitors.  The spyware installs from web sites exploiting security holes in Windows XP without the user's knowlege.  Computer Associates makers of PestPatrol define this adware as "EXact Advertising," a type of spyware which 

'Installs or updates without user permission or knowledge at time of installation.' The following files were installed without permission: adv.exe (44 KB), adv.exe (32 KB), and bargains.exe. Second, it 'Silently connects to an unintended location to transmit personal information.'

Computer Associates has instructions for detecting and removing this virus.  

How eXact Advertising Works

The user visits any web site exploiting Windows XP security holes.  The program is covertly installed.  Users are attacked when they visit any of the following web sites:

• dvd-rent-test.dreamhost.com (Michael Muege's An Analysis of Netflix's DVD Allocation System)
• greencine.com/main
• hitflix.com
• moviesforguys.com/articles/netflixreview.shtml
• online-dvd-rental-comparison.com
• and many others

When the user tries to visit those web sites they are redirected to Netflix's home page.  Needless to say, Netflix doesn't want anyone reading what Mr. Muege has written.  Netflix has also been using this program to steal potential customers from their competitors GreenCine and Hitflix.  I've e-mailed GreenCine and Mr. Muege to let them know what Netflix is doing.

Edelman goes on to say Technology Crossover Ventures, which also funds Netflix, is a major investor in a company called Claira (formerly Gator) which creates spyware, especially a program known as "Gain."  Gain is spyware responsible for the following:

• installing through misleading ads at kids sites 
• installing through bundles with games
• confusing installations with lengthy, poorly-presented, one-sided licenses
• covering web sites with ads for competitors
• making false claims about business practices 
• failing to provide a working uninstaller & instructions

For the record, Netflix admits to using spyware, "Companies including Netflix Inc. and Orbitz LLC have acknowledged using adware" to promote themselves online according to Adware Report (July 6, 2005).

Unfortunately, my antivirus program Zone Alarm does not protect against spyware.  Zone Labs allowed me to check my PC for spyware and I was surprised to discover my computer was infected with 29 different spyware.  Check to see if your PC is infected for free: Zone Lab's Free Online Spyware Detector.

P.S.  Gamefly has also been implicated in the scandal--they've been diverting traffic from Netflix, Blockbuster, Gameznflix, Hollywood Video, and Walmart.

Resources For the Netflix Customer [bookmark]

There's something fishy about Netflix that has their customers feeling cheated yet they can't quite figure out what's going on.  That's exactly how I felt after starting my membership.  Others felt that way too.  Along comes Michael Muegel who puts 2 and 2 together and writes An Analysis of Netflix's DVD Allocation System.  Suddenly, it starts to make sense.  Other customers start recording their rental activity as well to produce pages like, Comparison of Renting DVDs Online fromNetflix, Blockbuster, and Walmart.  Recently, TallRock.net created an online program that will analyze your Netflix rental history.  TallRock.net also created a rental simulator which calculates the maximum number of rentals you will receive per month based on your profile.  created a similar program that calculates your maximum number of rentals per month.  created a program that tracks customers shipments and returns.

I've created a few calculators as well to aid Netflix customers.  My first program was the Netflix Turnaround Predictor which was created before Netflix announced their throttling policy.  I created it to prove Netflix could use programming to throttle customers based on their rental activity.  Next, I created a Price Per Rental And Turnaround Calculator to calculate the turnaround time and price per rental on various plans and services.  Finally, I created a Broken Rental Ratio And Percent Calculator to help customers measure the amount of cracked DVDs they receive.

July 17, 2005

My Next DVD Player Will Be GreenCine Compatible [bookmark]

Almost two years old and having played over 700 DVDs, my Pioneer DV-563A continues to perform without fail.  There was only one Netflix rental that was scratched so badly my DVD players could not play.  I bought my $170.00 Pioneer DVD player back in October 2003 after my $80.00 Hitachi from Sam's Club died unexpectedly.  I really didn't expect it to last this long especially considering the number of DVDs it's played.  I'm planning on buying another Pioneer DVD player when my current player bites the dust.  The replacement I have in mind is the Pioneer DV-588 A-S which is capable of playing DivX burned DVDs.  There's an advertisement inside GreenCine's envelope that says,

"If you owned a DivX^® certified DVD player, you could have watched this movie yesterday!  Download, burn and enjoy GreenCine movies in hours with DivX VOD.  For more information visit vod.divx.com/how."

A screen capture of GreenCine's home page reveals they have movies available for download in DivX format.  This might be something I would be interested in the future.

July 16, 2005

Recent Comparison of Blockbuster and Netflix

Blockbuster Online vs. Netflix: Part I, II, III

July 15, 2005

"Nearest Netflix Shipping Facility" Part 8 [Bookmark]

To help customers better understand how the post office sorts Netflix return rentals I'm doing an introduction to business reply mail.  I'm focusing only on what a automated sorting machine would see.

1. The first thing an automated sorting machine will see are the horizontal bars under the "No Postage Necessary" box.  This indicates business reply mail.  There's no other information indicated by it.  The size of the bars must be between 1/16 - 3/16 of an inch in height (Netflix uses 2/16").  The bars must also be at least 1 inch wide (Netflix uses 1 and 1/8").  There's no significance to the number of bars except they must remain above the return address.

2. Now that the sorting machine has identified this envelope as business reply mail it uses the facing identification mark (FIM) to distinguish the type of business reply mail.  There are 4 types of FIMs.  Netflix uses FIM type C.  FIM type C instructs the sorting machine that this envelope has a Postnet barcode and can be routed directly to a high-speed barcode sorter, bypassing slower manual sorting or optical character reader (OCR) processing.

3. A high-speed barcode sorter reads the Postnet code containing the 9 digit ZIP code and sorts the envelope accordingly.  Netflix saves 6-7 cents per envelope with machine sorting versus hand sorting.  That's quite a savings considering Netflix mailed 3 million movies per week last year.

Let me emphasize an automated sorting machine has no idea this particular envelope belongs to Netflix, nor does the phrase "Nearest Netflix Shipping Facility" mean anything to it.

Today, I finally spoke to postal employee in a Business Mail Entry (BME) center.  She reaffirmed the same response that every other postal employee has given concerning the return of Netflix rentals:  They're delivered to the return address.  Netflix investors will have you believe magical fairies reroute your envelopes addressed out of state to your local distribution center--it just doesn't happen.  Here's something to consider.  You would think that Netflix would include information in their FAQs to clear the confusion raised about "Nearest Netflix Shipping Facility" yet they don't.

Recently, blogged about this subject.  Let me remind you that HackingNetflix is frequented by Netflix investors posing as customers in order to "sell" Netflix and often misinform the public in doing so.  These Netflix shills will have you believe your rental with a return address across country will magically end up at your closest Netflix center.  Message board posters provided anecdotal evidence to prove this was so yet none posted any facts to prove it.  The most humorous post was of an alleged postal employee.  As a result of this confusion, I e-mailed Mike Kaltschnee, owner of HackingNetflix and asked him to provide some insight into the matter since Mike has personal dealings with Netflix executives--surely they would know however Mike never replied.

Netflix recently sent me a rental with a "Nearest Netflix Shipping Facility" address of Lansing Michigan which is my local distribution center.  Does this mean that all envelopes will appear like this in the future?  Until I hear otherwise, I will continue to place my rentals that came from out of state distribution centers in envelopes addressed to my local distribution center.  Netflix allows you to place more than one DVD in envelope.

"Nearest Netflix Shipping Facility" Part 1, 2, 3, 4, 5, 6, 7

Netflix is the Stupid Investment of the Week

Ever wonder what a news article looks like when it's not paid for by Netflix?  Read Stupid Investment of the Week by Chuck Jaffe.

July 12, 2005

A Tale of a Wandering Samurai

The reason I don't report broken Netflix rentals is doing so slows down my shipments.  That's why I was so surprised of the speedy service Blockbuster gave me when I reported a broken rental.  As soon as I reported my broken Blockbuster rental, the title in question was removed from my queue and a replacement was shipped out that day.  So let me tell you the tale of a wandering samurai Rurouni Kenshin.

On June 28, Netflix sends me a notice that Rurouni Kenshin vol. 6 has shipped.  Yes, miracles do happen and Rurouni Kenshin arrives at my door the next day (June 29) except it's cracked in two.  That same day I report this Netflix rental as broken.  I was hoping Netflix would do a better job replacing my rentals since their competition Blockbuster had done such a good job doing the same.  Netflix notifies me my replacement will ship tomorrow (June 30).  I'm thinking this is terrific.  Netflix has finally cleaned up it's act.  However, the next day Netflix changes my queue to "shipping Friday."  By the time Netflix finally gets around to shipping out my replacement on July 1, the cracked disc was already checked in.  Kenshin's long journey which began June 28 finally came to an end when I received my replacement 1 week later on July 5, 2005.

July 11, 2005 @ 1:30pm EST 

Netflix Lets Customers Get Spammed [bookmark]

As part of a new revenue generating campaign initiated by Peggy Fry, newly appointed V.P. of Advertising, Netflix subscribers can expect an influx of spam and junk mail as Netflix will provide "relevant" advertisers access to subscriber's e-mail and home addresses.  Alyce Lomax of Motley Fool says, "Unrelated advertising pollution on Netflix's materials probably won't sit well with subscribers."  Subscribers can call customer service at (888) 638-3549 and request their names be taken off their mailing lists.

Story first reported by Robert Mullins of the Business Journal.

July 5, 2005

Rentals Statistics To Date [bookmark]

*This time I added things up a bit differently.  Total unplayable rentals are the sum of broken rentals, scratched unplayable rentals, and lost rentals.  I hadn't included the lost rentals before although lost rentals are unplayable since you have nothing to play.  Percent and ratio calculated using the Broken Rental Ratio & Percent Calculator--I substituted broken rentals with unplayable ones.

It's getting confusing keeping track of the number of broken rentals Netflix has sent me so I created a separate page just for that purpose.

July 4, 2004

June In Review

Services compared using rentals "returned" or "received" during June 2005.  Cost/rental & turnaround computed using Price/Rental & Turnaround Calculator.

If you count the 2 free rentals (Appleseed, Meet the Fockers) I received with my Blockbuster Online membership then Blockbuster's cost per rental is $1.06.

June 29, 2005 Previous Page

My Netflix Journal Archive

• November 2003 - November 2004
• December 2004 - March 2005
• April - May 2005
• May - June 2005
• July - August 2005
• September - December 2005
• January - March 2006
• April - September 2006
• October - December 2006
• January - March 2007
• May - September 2007

Turnaround Predictor | Price/Rental Calculator & Turnaround Time | Broken Rental Ratio & Percent | My Opinion of Netflix | My Netflix Journal | Customer Opinions