Netflix Has Major Outage, But Immediately Issues Credit To Customers

Posted Aug 15, 2008

Netflix, Inc. (NASDAQ:NFLX) has suffered several outages over the last week. It was the worst outage that Netflix has had since starting. Of Netflix’s 8.4 million customers, one-third of the shipments were halted due to shiping system issues. Shipments were not made this past Tuesday. Some shipments were made on Wednesday and Thursday, but Netflix has quite a bit of catching up to do.

Credit will be given to customers that suffered from the outage as the company continues to fix the problem.

Many customers did not mind the disruption because Netflix’s supply chain has been very reliable up until now. “Netflix’s service has been impeccable,” stated Cary Miller, a media executive that has been using Netflix for quite some time now. “I probably wouldn’t have noticed if they hadn’t informed me.”

“This time, the site’s been up but our shipping system is down. It’s worse than it was in March. We’re really backlogged,” stated Steve Swasey, a Netflix spokesman. Netflix sent out an e-mail to those who were affected by the outage. Below is what the e-mail stated.

“We are sorry for any inconvenience this has caused. If your DVD shipment is delayed, we will be issuing a credit to your account in the next few days. You don’t need to do anything. The credit will be automatically applied to your next billing statement.”

Related Link:
1. Reuters