InternetNetflix shipments back on track after severe outage (Reuters)

Reuters - Online DVD rental pioneer Netflix Inc said it resumed normal shipping on Friday after a three-day disruption, the worst in the company's decade of operations.

LOS ANGELES (Reuters) - Online DVD rental pioneer Netflix Inc said it resumed normal shipping on Friday after a three-day disruption, the worst in the company's decade of operations. The company's earnings are not expected to take a big hit as a result of planned refunds, but the outage could tarnish Netflix's reputation for good customer service, analysts said on Friday. Netflix said all customers whose shipments were delayed will get a 15 percent credit to their next billing statement. New customers using the service on a free two-week trial basis will have their trial extended by a week. "We don't have in our terms of agreement that if you miss a day you get a credit," said Netflix spokesman Steve Swasey. "We just do that voluntarily because it's the right thing to do." He said that backlogged shipments should all move on Friday, with "possible rare exceptions." Netflix shares closed down 1.8 percent to $31.26. The company has declined to give specific reasons for the outage that hit about a third of its 8.4 million customers. The company also declined to reveal the total cost of the refund and extensions of free trials for new customers. "We're not breaking out that level of detail," Swasey said. The disruption was only the second delivery outage for Netflix since the company started mailing out DVDs in... [ Read more on www.yahoo.com ]

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