UPDATE: Netflix is NOT limiting its streaming! See details below.
Whew! Crisis averted. What looked to be another blow for Netflix customers today — people who pay for streaming plans could no longer watch more than one movie or show at a time on multiple devices — is not really happening. For those who already decided to scrap the DVD mailing plan when the company separated its signature red envelopes from its instant viewing plan this summer, effective Sept. 1, the enforcement of Netflix's single-stream policy could have been the final straw.
Turns out, Netflix had a glitch and sent out error messages, in error.
Thanks to Time for this:
"No Netflix member is limited to less than two concurrent streams," Netflix spokesman Steve Swasey sent in an email. "A few Netflix members have heard differently from us, which is an error that we are correcting."
But, should they ever decide to do this in the future, Mashable reports the enforcement's most likely casualties: "The change could have a major effect on how families use Netflix. No longer can one person watch a movie from the iPad while the rest of the family watches another film on the Xbox, for example."
Netflix caused quite a stir on its own social media platforms this summer with its announcement that members could no longer have a combination plan of DVDs and streaming. The separated plans also came with a 60 percent price hike. (Once a combined $9.99, the streaming service is now $7.99, while the cheapest DVD plan is also $7.99.) This could open the way for rivals such as Redbox to gain angry ex-Netflix subscribers, thousands of whom have said they would cancel their service.
While there was a decline in net subscriber additions from the first quarter of 2011 to the second, the mass exodus has yet to be reflected in Netflix's financial reports — yet. If anything, the third quarter report should show what impact the separation of plans has had.
Netflix also might feel the burn from the loss of movies from Starz. Talks between the two companies broke down last week.
Once those error messages started popping up limiting streams, members once again took to the Netflix Facebook page to air out their grievances on this latest (supposed) affront.
Ryan Condict wrote this on the page this morning, which seems to back up that assertion that families would suffer most by such enforcement:
I supported and understood the reason for the price hike. Still feel that the prices you have are very fair. However, limiting me to only 1 stream at a time is something that will make reconsider renewing my membership next month. I understand a small limit so that people are not sharing their accounts with friends and family which causes Netflix to lose money. But you need to be able to at least have 2 streams with the streaming only package. There are so many times when my 9 year old son wants to watch some disney show or cartoon that I don't have much interest in. So I go to my room and watch an episode of Mad Men or a movie. With this new policy I will not be able to do that. Please reconsider or alter this policy a bit. Once stream is not sufficient for most households with children.
Other members on the wall also chimed in with their own stories, but a few (a minority) said they could see where Netflix is coming from. Jason J. Peugot wrote:
Well it makes sense. I mean think about it. you 'could' give/sell your password to an unlimited number of people -- thereby streaming to unlimited numbers of devices. why should you pay for one subscription and stream to, let's say 1,000 devices? :\
Previously, Netflix's Terms of Use stated that streaming was permitted only on one device — if your plan included "unlimited streaming" and just one DVD. If you had a plan that allowed two DVDs at one time, you were permitted two simultaneous streams. Three DVDs got you three streams.
Now that the streaming plan is totally separate from the DVD rental plan, it had appeared Netflix was enforcing the single stream rule for everyone. The company has yet to update the terms of service to reflect the new plans and streaming policy.
Commenter Scott Dietrich clearly represents the majority of how Facebook posters seem to feel, so Netflix should take heed of this cautionary tale:
I think this is something that Netflix is pretty short-sighted on. I know it has always been in the TOS, but enforcing the policy now isn't all that smart if you ask me. I really don't think it would be too hard to weed out those people who share their information with multiple people. They wanted to separate the DVD and streaming parts of the business, but then they still have the streaming devices you can stream on at the same time tied to which DVD plan you have. That makes no sense to me. I think they are working on something to fix this, but that should have been done before they started enforcing this policy.
More stories:
- Is your Netflix queue in trouble?
- Report: 2 million+ subscribers will cancel Netflix
- Nielsen: Hulu users watch more TV than Netflix members
- Outrage over Netflix rate hike continues
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