Saturday, February 11, 2006

Slashdot - Netflix Throttling Heavy Renters

Generating a lot of discussion. For rental services that offer "unlimited" deals - what do you do if you lose money on your heavy users? (BTW - In other businesses their heavy users would qualify as their best customers.) Netflix's answer is to build into their automated system penalties for heavy users regarding how soon they ship and what they ship.

Now that this practice is out I am sure their best customers, their most avid fans, will be badmouthing them. If some hadn't figured it out already. There are other procedures Netflix could use I am sure they will now be investigating. Apparently from comments they had been lying to customers about why they shipped late - a legal no-no.

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