Love the gadget, hate the gadget maker

  

Sometimes the big tech companies seem to compete to see who can alienate consumers the most. Google, which everyone used to love, launched its Nexus One phone without bothering to hire any customer service reps. That didn’t go over so well when the inevitable problems arose. 

About the time it got done wiping the egg of its face from Nexus One, Google angered other consumers with the launch of its Buzz social networking add-on to Gmail. Google took the liberty of browsing through Gmail users’ “Sent” folder and started sharing user information with anyone it decided to add to the social network. Google issued several public apologies and changed some of Buzz’ features after a class action lawsuit and uproar from Gmail users. 

Apple has a legendary core of loyal customers. But the company faces a growing chorus of complaints about customer service from the owners of faulty iPods and Macs. Last summer, the company took anti-consumer behavior to a low when it tried to silence a British man as a condition for refunding the purchase price of an iPod that had exploded.  

When it comes to torquing off the customers, it’s hard to beat Microsoft. A growing number of consumers have decided to pay inflated prices to buy Apple computers because they dislike Microsoft, its products and its customer service.  

After a recent hassle streaming Netflix movies to my TV via Microsoft’s Xbox 360. I was ready to add one more item on the “Why People Hate Microsoft” list. But after looking at everything in the light of day, I’m nominating Netflix to the list of companies that want to be hated as much as Microsoft. 

This latest run in started when a major craving for noir hit me. Netflix told me that all I needed was a compatible hardware device such as the Xbox 360 and I’d be watching Bogart in “Dead Reckoning” on the big living room flat screen in minutes. I signed up, fired up the Xbox, downloaded the Netflix software and …  

Instead of Bogie as a returning war hero, I got a message from Xbox Live that my Gold subscription had expired and I’d have to renew to watch Netflix movies on my TV. 

I can download Amazon Unbox movies from my PC and stream them to the living room TV through Windows Media Center and the 360. I can record TV shows on my PC and stream them through the Microsoft game console. I can watch live programming on my PC’s TV tuner and stream it through the Xbox. But Microsoft has crippled Xbox Live and Media Center to prevent me from streaming Netflix unless I sign up for a premium subscription. 

Crippled technology — when a company sells you hardware with some of its features intentionally disabled — bites. Microsoft is not the first company to do it. For years cell phone carriers have turned off features that would bypass revenue-generating data fees. Sony’s Blu-Ray has the ability to cripple the output of high-def movies on older HDTVs as part of a digital rights management scheme. But that doesn’t make Microsoft’s disabling of the 360 any less of a slap in the face to people like me who bought the gaming console but don’t want to pay for a subscription to the online gaming service. 

I went back and looked at Microsoft’s original announcement. They were clear that the Netflix feature — an exclusive at the time — was limited to paid subscribers. Since then Sony has begun offering a similar feature on its PlayStation 3 and Nintendo has announced a similar service for its Wii, coming this spring. Both of the competitors offer Netflix delivery for free. 

So I guess Microsoft’s off the hook. It’s a relatively free country. Maybe they’re making a good business decision. Maybe they’re making a bad marketing decision. But I’m left watching Netflix movies on my 20-inch desktop monitor.  

Instead of sprawling on my big ol’ comfy couch, I’m getting a crick in my neck from trying to put my feet up at my desk while watching movies halfway over my shoulder. I have to blame someone. 

What about Netflix? I went back and looked at the company’s website to read their marketing info carefully. Here’s what it says: 

“First connect your Netflix ready device to the Internet via an Ethernet cable (or Wi-Fi, if you have it.) Then plug it into your TV. Now you’re ready to select movies on your TV and watch instantly.” 

The web page shows three “Netflix ready devices” and there’s a picture of my 360. 

Not far away, I found my favorite line: “There’s no additional fee — it’s included in your membership.” 

I scrolled down the page. I was informed that the “Xbox 360 is the total entertainment experience” and I could “watch thousands of HD movies and TV episodes at the press of a button including titles streamed instantly from Netflix.” There was still no mention of the hidden fee. 

Finally on another page I was told that I would need an Xbox Live Gold membership, although there was no mention of the price. 

I’m no attorney so I don’t the legal definition of deceptive advertising, just like I don’t know the medical term for “crick in the neck” or the preferred marketing term for “alienated consumer.” But like Supreme Court Justice Potter Stewart, I pretty much know it when I see it. 

 

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