Netflix Deliveries Back On Track After Outage

Firm to give credit to millions of customers hurt by mystery glitch

By Rob Quinn, Newser Staff

Posted Aug 16, 2008 6:32 AM CDT

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Netflix Deliveries Back On Track After Outage — Netflix CEO Reed Hastings shows off a new set top box at Netflix headquarters in Los Gatos, Calif. Customers who used the firm's online streaming were unaffected by the glitch. (AP Photo/Paul Sakuma)

Netflix deliveries were returning to normal yesterday after a computer glitch caused a 3-day disruption, Reuters reports. The company plans to offer a 15% credit to the millions of movie lovers affected by the glitch, whose cause is still a mystery. The outage, the worst in Netflix history, is believed to have cost the company close to $2 million, which isn't expected to hurt the company's bottom line, but the snafu could hurt its reputation.

"Anytime something like this happens you risk hurting that brand and that can end up hurting you in the long term," warned an industry analyst.
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