New Zip membership plans/pricing (continued from t297)

[YKdvd]

I posted a quote from the Netflix "Terms of Use" in another thread - it seems to suggest that Netflix may delay shipments by a day and send lower priority items to high-volume renters.

There also seems to be a lot of unofficial speculation out there about Netflix "throttling". Here are various links I've found, or do a Google search on "Netflix throttling".

Hacking Netflix site

ManuelsWeb Netflix journal

An ABC San Francisco story

If Netflix is getting 1-day service to a high percentage of customers, they are certainly no strangers to the "high-volume" problem. Frankly, I'd rather a company be open about how they deal with it (even if ZIP's approach may not be ideal) rather than have them do things behind the scenes.

[constantmac]

Some of you are talking about the fact that, for instance, if you're on the 4 DVD plan you should get at least 16, and if you're 6, least 24. On the face of it that seems logical, but in actuality even that would not solve the problem. Rick very clearly states in his manifesto that the billing period is from month to month. There are not necessarily four weeks in a month. Depending on the date of your invoicing you could still end up with having gotten your four or six a week, and have a week in the middle there where you'd have to pay more. Granted it should only happen twice a year, but it's still a consideration.

I'm not happy myself with all of this. I've run the numbers, and figured that I'm probably either best off with the 4 DVD unlimited plan (I'm currently on the 6 plan, getting 6 every week) or go with the 6 unlimited and pay 20 bucks more a month (I'm not willing to do that). If I go to the 4 plan I'll be paying approximately the same amount I'm paying now, but since I only watch DVDs on the weekend it basically means I'll be receiving 2 less DVDs a week than I normally get. (4 DVDs every week).

Gotta tell you though, the more expensive it is, the more tempted I will be to go back to cable.



I still haven't decided what I'm going to do.

[SteveG]

Just cancelled my account with Zip.

a>Zip consider my 13-17 Dvd's per month high use --->

b> Zip likes to advertise "Unlimited" (but with a catch) -->

The new pricing structures make absolutely no sense.


Wouldn't have minded paying a couple of dollars a month more to avoid "per use" penalties, but on principal alone (especially point <b>) I just can't wait to give my money to someone else.

I can walk into Blockbuster any Tuesday afternoon and get ANY new release when I want it. No late fees. I can also get one free older movie for every new one I rent (Sun-Thurs) --> on Gold Plan).

I can explore one of the other online options for the TV series and rarer titles that I can't get at Blockbuster. Will I pay a little more on average? Sure. But that's not the point.

You see Rick...there is such a thing as the "cost of doing business"....You really need to understand this if you wish to keep slinging your "Unlimited" service.

You see there will be always that person who will get that 3rd plate at the buffet.

You see there will be always that person who wants the ten ketchup packets with their fries ad McDonald's.

I am not even one of those types.

Very disapointing... but I am already starting to feel better....

Ps Anyone notice that in general, Zip has slowed down the last couple of weeks...

I'm sure once the new pricing structure hits, they will return to their old model of efficiency.

[theScud]

Those are some informative links you provided, David. Some people are wishing for Netflix to arrive in Canada immediately but I get the sense that they will not be the panacea.

[clh78]

You see a negitive response here because there are mainly high use customers here. If you raised the low end price $3 you would definitly hear for the 70% or so customers under the 14 cap right now...

I look forward to the loss of customers who rent over 20 a month so us under 14 a month can start getting the shows we want (hopefully).

Amen, brother. This forum is NOT the majority. And the other 70% of us that use Zip are sick of subsidizing the costs of 30% who work shift work or have DVD burners and like to watch movies every day. If there was a general increase, the majority would have been mad and upset. Zip is doing smart business by flushing out the expensive heavy users and keeping the rest of the population satisfied. Check the numbers on the poll....59 people voted. 59!!! That's not even 1% of their customer base for crying out loud!!! You can't make everyone happy all of the time and Zip clearly realized where their bread and butter was and did what they had to do to increase the bottom line.

To lamely use a movie quote, I'll end by saying - "It's not show FRIENDS, it's show BUSINESS" people!

[SteveG]

Zip is doing smart business by flushing out the expensive heavy users

They are also "flushing" out people like myself who may on a good month get an average of 4 and rarely 5 (because of Zip refill) a week.

Price is really not an issue......it is definately the principle, however $2.19 "shipping" per extra title over "14" is such a blatant money grab it is not even funny........ all while maintaining the "unlimited" description...pathetic...

[~~Darlyn~~]

And the other 70% of us that use Zip are sick of subsidizing the costs of 30% who work shift work or have DVD burners and like to watch movies every day.

I'm also not a heavy user so that has no basis for why I'm complaining. I don't work shifts, I don't own a DVD burner but I do like to watch 3 or 4 movies over the weekend.

Zip is doing smart business by flushing out the expensive heavy users.

I think you're sadly mistaken. I think Zip is flushing regular users out like myself who may not surpass the 14 disc cap during certain months but like the freedom of knowing that they can if they want without being hit with additional charges.

I'm not by any means trying to tell Rick how to run his company. What I am doing is voicing a consumer opinion about how the running of his company makes me fee, something I have every right to do.

I feel that we were slammed with both price increases (depending on your plan) and caps. If stating the facts of what happened and voicing my concern over it is whining, telling Rick how to run his company, etc., etc. than so be it. This is the forum where we can do this and if it's annoying to some and you are happy with Zip's business plan than great, no need to keep reading.

[Fleury]

I also wonder if Zip bothered to check if the higher-end users (on whom they admitedly lose money) have been profitable in other ways...

I introduced my sister-in-law to the service, and she is now a member averaging only 6 or 7 movies per month. For her, it's still a good deal even at that level -- she's deaf so mail order saves her the hassle of trying to deal with store clerks; she gets obsessed with a specific movie sometimes, and she loves that she can keep it as long as she wants (she currently has one title that she has held on to for 2 months); and she doesn't have a car, so it's inconvenient to get to the rental place.

Between she and I, Zip is certainly making a profit, and she wouldn't have become a member had I not recommended the service to her. So even though Zip might be losing a few bucks on me each month (maybe six or eight dollars, if Rick's cost estimates are to be believed), they're making about twice that on her.

Meanwhile, my brother and my best friend have been considering joining based on my (up to now) satisfaction with the service, but I can't really recommend it anymore. I've let them know that I'll be trying other providers and finding out which is best.

As for whether or not we have the right to complain ... of course we do. Does Zip's decision make good business sense? Who knows? We'd need a lot more financial info than we have to make a good guess about that. I suspect, though, that it hasn't been thought out thoroughly. At this point, I'm guessing that the plan outlines that Rick posted are still being tweaked -- he's probably using us as a resource to test out the ideas and see the reaction.

My reaction: everyone was upset at seeing the prices for "Rogers Direct". Did you notice that the extra shipping charges now being proposed by ZIP are actually HIGHER than those that were listed for Rogers Direct? It's no wonder that people are balking.

I would have been perfectly happy to pay for the SHIPPING on movies beyond a certain cap (i.e. $1). $2.19 is not the cost of shipping. It's around their total operating cost (again, if Rick's estimates are to be believed).

While it makes perfect sense to pay more when you rent more, it DOESN'T make sense to pay more *per unit* when you rent more. What I mean is, if you rent 14 movies in a month, your per movie cost is around $1.78. If you rent twice as many as that, your per movie cost goes UP to $1.99.

If Zip absolutely must take in $2.19 per rental, then their cap is actually too HIGH for their costs. It should be 11 movies per month. And if they *don't* need that much per rental, then why charge that on the overage?

--
Marc.

[clh78]

clh78, you seem to like standing on that little soap box of yours. I don't know if you intend to carry yourself as a self important poster, but that's what you sound like.

You sound like a total idiot (sorry)...

So if you have an opinion on the new pricing, go to town with it. But if you have an opinion on the posters themselves, why not try to keep things on topic.

We are discussing the new pricing, options and alternatives, but if it makes you feel *that* much better to keep riding your high horse, spilling out the obvious and trying to make us feel like little children, then I guess I certainly can't stop you.

Hello pot, this is the kettle....YOU'RE BLACK.

I'm doing exactly what everyone else on this board is doing --- WHINING and COMPLAINING about things that irritate me. Your hot button is pricing plans, my hot button is your reaction to the pricing plan. I'm not saying people are stupid or going out of my way to insult anyone in particular (which is more than I can say for you), I'm just voicing my opinion so that casual readers are aware that not EVERYONE is up in arms about this plan and that Zip still offers a good value for someone like myself who hits about 13 dvds a month on average and doesn't mind paying an extra $2.19 every once in awhile. You can interpret my comments and "self-important" stance however you want...

I find it hilarious that you're taking the time to tell me off for getting personal when I never have....and then you proceed to take my place on the soapbox. I hereby surrender my sparkly crown of self-righteousness to you, good sir.



Give me a break.

[mmason31]

I would have been perfectly happy to pay for the SHIPPING on movies beyond a certain cap (i.e. $1). $2.19 is not the cost of shipping. It's around their total operating cost (again, if Rick's estimates are to be believed).

Also, please keep in mind that the $2.19 is actually $2.52 when taxes are added. 4 more movies actually costs more than $10 if one goes over the cap. Quite expensive when compared to the package costs are concerned. Who pays $5/hour when they exceed their monthy dial-up internet account package of hours? It's usually a nominal amount.

I'm still trying to decide if I'm going to take the hit for a more expensive package as I've averaged 17 disks/month in the 13 months I've been with Zip on a 4 out package.

[clh78]

Hey Jason...you're OFF TOPIC!!!! We're talking about online dvd rentals, remember? Jeez.