Netflix Proves Popular but Unsatisfying

PCMagazine.com

July 27, 2012

If you stream video content from the internet, there’s a good chance you have a subscription to Netflix. But while Netflix is the most popular streaming service among consumers, it’s not necessarily the most pleasing one, according to a new survey from Consumer Reports.

The survey of more than 15,000 Consumer Reports subscribers found that 81% of those who have used a streaming video service in the last month used Netflix. But alternatives such as Vudu, Apple iTunes and Amazon Instant Video all scored higher in terms of user satisfaction.

The survey found that the biggest problem with Netflix’s streaming service is its limited selection of movies—namely, new releases. But this issue isn’t limited to Netflix. Other all-you-can-watch streaming services such as Amazon Prime and Hulu Plus face the same problem. Less than one in five survey respondents said they were “highly satisfied” with the titles available on those services.

“Our survey revealed that a healthy selection of titles is one of the biggest factors in overall satisfaction with video services, which is why disc rental services and pay-per-view streaming services scored the highest in our ratings,” said Jim Willcox, senior electronics editor at Consumer Reports.

In comparison, a majority of respondents said they were satisfied with the titles offered by pay-per-view streaming services such as Amazon Instant Video, iTunes and Vudu. It should be noted, however, that these services can be costlier for movie buffs because they require users to pay individually for each movie and TV episode they watch.

Vudu came out on top of all other streaming services with a 76% user satisfaction rate. Apple’s iTunes took the No. 2 spot, garnering 75% user satisfaction, followed by Amazon Instant Video at 74%, Amazon Prime at 70% and Hulu at 70%. Netflix streaming came in at No. 6 with a 69% user satisfaction rate.

Meanwhile, Netflix took top honors among physical disc rental services, followed by independent video stores Redbox and Blockbuster. A Netflix spokesperson declined to comment about the survey when contacted by PCMag.com.

Overall, 52% of those polled said they used a streaming video service in the last month compared with 47% who saw a movie at a theatre, 43% who rented a DVD or Blu-ray disc, and 32% who took advantage of their cable company’s video-on-demand service.

The report comes shortly after Netflix rebounded from a $4.6 million first-quarter loss to post net income of $6.2 million in second-quarter earnings.