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Several weeks after dropping its pricing bomb, Netflix remains in the doghouse with consumers. This is according to YouGov BrandIndex, a firm that tracks brand perception. Netflix’s numbers have plummeted since the price change announcement and have hit levels similar to—gasp!—Blockbuster.

Ted Marzilli, SVP and managing director of BrandIndex, said the following about Netflix’s precipitous fall from grace:

“This is a big shift for a brand which had been steadily increasing in perception since we began tracking it in mid-2007 and placed at No. 6 on our 2011 half-year ranking of the brands with the most buzz,”

Netflix’s loss in consumer perception has been Redbox’s gain, according to the firm. Click here to see BrandIndex’s charting of major movie renters and their respective perceptions.

Is this a short-term stumble for Netflix in consumers’ minds, as its executives hope, or has the company permanently lost its “golden boy” status with the movie-renting public?

(via Home Media Magazine)

17 Responses to “Report: Netflix Falls, Redbox Rises in Consumer Perception”

  1. Member [Join Now]
    s142424

    It’s going to take a long time to get over this. I don’t know about permanently, but definitely long-term.

  2. Visitor [Join Now]
    Rhonda [visitor]

    It seems to me that the service Netflix provides its customers has been in decline for some time now.
    First they (and their customers) were hit with 90 day delays, which wasn’t their fault, but forced upon them by studios trying to prop up declining DVD sales (which is probably a long-term trend having little to do with Netflix or Redbox or other companies like them). Because of that, they stopped being at the forefront of providing new releases.
    Second, their catalog inventory is aging and no longer as deep as it once was. I have the service in order to have access to its DVD catalog, and I’ve noticed an increase in the amount of barely playable and unplayable DVDs; I’ve also noticed some titles simply disappearing as available – I think this is because they are replacing the catalog more and more slowly as the discs are reported as damaged.
    Third, the instant view service, which many perceive as their strength in a new business model, is idiosyncratic in that a title might be available at a particular time and then all of a sudden, it’s not available. Also, most of the titles available for instant viewing are really old, lesser catalog.
    They’ve tried to adapt so I don’t fault them that much, even for the price increases. The content providers are demanding an enormous amount of money. As Netflix has declined (starting with long waits for new releases), I’ve found myself giving more and more of my business to redbox and other competitors and I’ve downgraded my service plan from Netflix several times.

    • Visitor [Join Now]
      GreedISP [visitor]

      I agree with everything you say in your post, with the exception of the price increases.NEVER a justification for two price increases totaling 75% in less than a year (8 months to be exact)! Did you receive that type of pay raise this year…lol? But you are most definitely right about their service declining. LONG LONG wait times for new releases on the DVD side, and VERY limited fluctuating availability on the stream side. So, now I must ask you… why would you not fault netflix for their 75%+ price increases, when you point out how their service has declined noticeably? I do also agree with you, that the true bandits (and cause) in all of this are the studio and media heads at the top and their practices and agenda, which ALWAYS seem to be at odds with what is good and in the best interest of the consumer and general public. Netlfix cannot be given a blank check in all of this… but the real anger should be directed at the media heads and bodies sitting at the top raking it all in. I too have downgraded my plan SEVERAL times now… right to the current point where I am at … which is CANCELLATION. Netflix can enjoy a 75% increase of that…. ZERO.

  3. Member [Join Now]
    bart927

    Not only are the services dropping in quality and value, but getting more expensive…
    The other thing people have forgotten was a week before they announced the price increase, netflix announced they were expanding service to Canada and South America… basically bragging that they are just trying to go global.
    Then, magically, the price went up….C’mon! We, customers, are not stupid. They are sounding more like another cable company- start of with a good price and service, then raise and raise the price and not increase services, just blame the increases on everyone else.
    I, for one, am getting tired of hearing of all these multi-million dollar companies whine about needing more money because of this and that- Not our problem. If you can’t handle the business and it’s expenses, sell it to someone who wants to help the people who keep the business running- the customers. Rule #1 in business is- you have to spend money to make money- stop passing EVERYTHING off on the customer. If the price tag out weighs the goods promised, people aren’t going to just take it.
    Like I told the cable company years ago-Not for nothing, but maybe you might want to increase your focus and strength perfecting services you have in one market before you try new things. Fix the poor PQ, constant pixelating and freezing, lousy channel choices and outrageous price tag. They feel that helping the customer is not a good solution, That is why I don’t do business with them.
    Netflix seems to be heading down that decline path…so they will be loosing my business too.

    • Visitor [Join Now]
      GreedISP [visitor]

      Amen to that brother!!!! Great post!!! I guess that what happens when you let too few companies gobble industries up, and all the smaller and mid sized ones, huh? Of course in return, the middle class gets gobbled up, and we change from a nation of business owners working for a piece of the pie, into a nation of minimum wage employees… while the top wealthiest 400 people in America earn more wealth and income than the bottom 186 million combined (FACT!!!). And of course when they get too big to fail due to their blatant GREED.. and of course (as all Americans have been brainwashed to believe) it is our American duty to BAIL them out and absorb the increases. No… I say… LET THEM FAIL. Let’s start with Netflix… and then move on to BP and the oil companies, followed quickly by the investment bankers on Wall Street. Let’s let them sit in the unemployment lines…hmmmm…lol?

    • Visitor [Join Now]
      Chad [visitor]

      Decent comments, but the average consumer/armchair C.E.O. has no idea what it takes to successfully run a business. You, for example. Rule #1 in business is you have to make money to stay in business. Yes, you have to spend money for that business, but it will be passed on to the consumer in some way or another. Maybe not as obviously as in a business model like Netflix, but it will trickle down with every business. If expenses aren’t covered, they will fail to exist.

  4. Visitor [Join Now]
    Larry [visitor]

    I used to be a Netflix customer, but dropped out 6 mo. ago because of limited Blu ray selection. Ever since then they have been trying to get me back. There were two reasons why I did not one of them being the selection and the other that there was no way to communicate to them by e-mail (cudos to Blockbuster at least for their lines of communication). With the price increase that makes three reasons why I will NOT be coming back…If Blockbuster was smart they would take advantage of Net Flix’s bungle and drop there prices enough to make them a viable alternative and then working on re-capturing at least part of the market they lost by remaining staunchly entrenched in their defective business model. Until then Redbox will continue to eat away at those that are managing their businesses with blinders on.

  5. Visitor [Join Now]
    Martin [visitor]

    I have not yet became a customer from either Netflix or Redbox. I was ready to maybe cut the cable connection since they were going to charge a much higher monthly fee. I previously found out that the cable companies have a ‘retention’ department so I tested that before making any type of change. We currently have phone, cable, and internet with the same cable company(COX). I called and spoke to the retention department and they quickly reduced the increase in monthly fee to be the same as what we were previously paying and also said they would send us a bonus check for staying with them. I agreed and now we are paying the same as before each month. For the future and if our money gets tight, I will cancel both phone and cable and replace them with OOma and internet streaming for movies (that I currently record within the cable system).

    • Visitor [Join Now]
      GreedISP [visitor]

      So….I guess what you basically said in your post… was that the cable company tried to RIP YOU OFF by charging you more than they had top… and quickly dropped the price back down when you were going to quit…lol? And btw let’s not forget that price, you have probably also been lied to about, and is also inflated by about 50% over what it REALLY should be. So… you decide to reward then for this by re-signing for more of their services..lol? Is that about it? All the while thinking you got some sort of SPECIAL deal? Oh, you got a SPECIAL deal allright. Turn around and bend over…. so you can find where you got it. My God Americans… WAKE UP. Reject the inflationary brainwashing. There is NO REASON for prices across the board to continually rise like this… WAY OUTPACED from what people’s incomes are rising!!! Think about it!!!

  6. Visitor [Join Now]
    Jimbo [visitor]

    First of all my Netflix service is only going from $23.99 to 28.99. Second you can rent blu-ray releases of older movies from Netflix. Example Blues bros, Animal House, and North By Northwest. Video stores are not buying the older movies that have just been released on blu-ray. Redbox isn’t either. I feel many of the people will rejoin Netflix when they find out it is the best deal in town. Since both Netflix and Redbox are on the 28 day delay I have to go th Family Video to get a particular new release. As far as the price increase it is the studios that are over evaluating thier content. Netflix and all other streaming companies will have to pay even more in the future. I am also fortunate the my local library has a great video collection(even blu-ray)

    • Visitor [Join Now]
      GreedISP [visitor]

      You sir….. and those like you…. are the reason the rest of us have to pay two 75% price increases in the course of 8 months. I do agree with you about the studio heads though…. but you are DEAD WRONG about accepting these sort of price increases as INEVITABLE. The brainwashing has been extremely successful in your case. Maybe you are genetically pre-disposed to it…lol? ARRRGH and GROAN

      • Visitor [Join Now]
        Jimbo [visitor]

        My family of 7 get’s 24 discs a month and watches 10 to 20 hours of Netflix streaming per week. Why should I complain? I used to pay $100 to Comcast. Now I pay $28.99 to Netflix. If you can show me a better option I would gladly take it?

        How do you feel about gas prices?

  7. Visitor [Join Now]
    Kac [visitor]

    A great show of consumer power when a large portion of the subscribers banded together and said, “no we’re not going to take a price increase for the same old same old!” If only a movement could get together and use the same approach for rising gas prices.

    I personally think, like most, that the streaming service is somewhat weak. After viewing for several weeks, I ended up viewing a lot of B-rated movies and the time for receiving, watching, mailing back and finally receiving another, on the 1 DVD plan, was around 6 days. If you’re lucky, that’s 4-5 DVDs a month. Redbox is a better option for me.

  8. Visitor [Join Now]
    pootroot [visitor]

    I can’t believe you people!! Cry babies !!! I love Netflix streaming and they have zillions of choices for streaming. I use Redbox for Dvds, So if you don’t want to pay extra for Netflix dvds then don’t ! There is a saying…If you can’t say something nice about someone then don’t say anything. CRY BABIES. Oops. I just said something not nice about the cry babies. Sorry !

    • Visitor [Join Now]
      Jimbo [visitor]

      I agree with 100%. If you don’t like the prices don’t buy. However you will not find a better deal than Netflix.