Netflix will credit customers for site outage

Netflix will credit customers for site outage

By Associated Press

SAN FRANCISCO (AP) - Online DVD rental leader Netflix Inc. said Wednesday it will provide a 5 percent credit on the monthly bills of customers affected by its Monday outage.

Netflix spokesman Steve Swasey did not disclose the number of customers affected, or the total amount that will be refunded, saying the credit will not have a material impact on the company's financial operations.

"The key thing here is: This was completely proactive on Netflix's part. There's no requirement for Netflix to do this, no obligation. There was no request for it. We thought it was the right thing to do," Swasey said.

Many of Netflix's 7.5 million members return, rather than receive, DVDs on Mondays after watching them over the weekend, Swasey said. The outage resulted in a one-day delay for people expecting to receive DVDs on Tuesday.

Swasey confirmed that one section of the site, its ratings system, remained down until Tuesday morning, as the company had decided to prioritize getting the ordering and shipping functions back online.

Monday's outage knocked out its Web site for about 11 hours. It marked the second-longest disruption since Netflix launched its service nine years ago. Netflix's Web site was down for more than 18 hours last July when the Los Gatos-based company lowered its prices.

Netflix shares were down 1 cent, to $37.11, in midday trading Wednesday.
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