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Notflix, Redux

by John Paczkowski
Posted on August 15, 2008 at 2:06 PM PT

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Well, Notflix is Netflix once more. The company finally resolved the technology problem that crippled its ability to mail DVDs to members for most of this week. As of this morning, all Netflix (NFLX) distribution centers are operating normally, and the backlog of DVDs that should have been shipped earlier is finding its way into the mail. “If a member should have been shipped a disc Tuesday, Wednesday or Thursday, with rare exception it will ship today (Friday),” the company explained. “As a result, millions of our members will receive DVDs on Saturday, in time (we hope) for some weekend movie enjoyment.”

To make amends for the outage, Netflix plans to apply a 15 percent credit to billing statements of members whose DVD shipments were delayed.

A welcome turn of events after an ugly week that saw Netflix customers losing their patience and the company losing an estimated $1.8 to $3.6 million in revenue each day because of the disruption.

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About John

John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper. Read more »

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