Thursday, June 19, 2008

Netflix and the Queue of Remorse

Netflix announced this week that it is doing away with its "multiple profile" feature. You can read about here and here. This feature allowed for multiple lists of movies to be kept under the same account, and enabled account holders to determine how many movies from each separate queue were to be sent each month. This feature keeps Beren and me from killing each other, and we invested significant time in creating our own separate queues.

Needless to say, I think doing away with this feature is a terrible idea. And the way they are doing it—simply deleting the secondary queues and not offering descriptions of the “beneficial features” that are leading to this decision—seems unwise. But all day I've been trying to figure out Netflix's motivation for this decision. They claim that the feature is used by only 2% of their 8.5 million users (170,000 users), that it was confusing and cumbersome to folks, and that they'd rather focus their resources on other features that will be of interest to a larger proportion of users. Most of their answers rang hollow to me. The feature was so useful, why not fix the human factors impediments to wider adoption?

So, what is the business case for making this decision? This is clearly a very small risk for them; 98% of Netflix users won’t notice a change, and only a small minority of the remaining 2% will be so irked by this decision that they will cancel their account. Sure, they’ll have alienated a passionate bunch, but the loss is small – say .25% to be generous. Where else will these folks go? I can imagine the market researcher pointing out that there is a very large number of potential users who are scared by Netflix’s current interface and features, and that a proportion of these users would likely become members if the interface was simplified and pared down. So, a net gain of members.

But the message Beren and I received from Netflix today was “we don’t value your patronage, and we won’t be working to meet your needs.” We will be leaving Netflix come August 30th, and if I worked for Blockbuster, I’d be trying to figure out how to woo disaffected Netflix members between now and then. 

 

5 comments:

  1. What they realized, probably, is that they can make more money if instead of 1 account with 2 lists, they got you to open 2 accounts. That's my guess.
    In the end, it's all about the $$$.

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  2. I don't think that's it, oddly enough. There aren't enough folks who would do that to make it worth while. I think they surveyed a large number of potential users, asked them what features they'd use and which they "didn't get," and decided to concentrate efforts on the high popularity features rather than the high utility features. Then they bungled the announcement of the change, making members like the two of us feel unappreciated.

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  3. May I recommend BitTorrent?

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  4. Interesting post Shawn, Courtney and I are Netflix users and I didn't even know that feature existed. I'm not sure we'd use it anyway, but your analysis strikes me as spot on. I'd be willing to bet that the decision was made because "people aren't using it so it must be a bad idea" without pausing to examine whether their implementation is actually the reason it's so underutilized. It's a very different task to assess utility to the customer vs. utility to your bottom line. I'd laso be willing to bet that part of their (probably lousy) implementation is causing some headaches for some engineers who are trying to kill it because they don't want to work on it anymore, and using the 2% figure as a rationalization.

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  5. Good news. Netflix announced today that they're going to keep Profiles. I guess because practically everyone said they're going to leave Netflix if they do away with them.

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