Netflix Raising Prices for Blu-ray Users

[Pirate]

Citing higher retail and wholesale prices, Netflix plans to implement a "modest monthly premium" for access to Blu-ray titles some time this year.

As confirmed through transcripts of Netflix's first quarter earnings call, President and CEO Reed Hastings made the announcement during the conference call yesterday.

"Purchasing Blu-Ray DVDs costs more both at retail and wholesale than standard definition DVDs, and consumers are used to paying more for high-definition content in every other channel, including video rental stores, video-on-demand, and cable channels," Reed stated. "Because of the higher cost of Blu-Ray and the consumer expectations around high-def content, we are planning on implementing a modest monthly premium for access to Blu-Ray some time this year."

No information was provided regarding a timeline for the price increase or the amount that might be charged. We'll be sure to keep you posted as we learn more regarding the company's plans for next generation subscribers.

Netflix to Raise Prices for Blu-ray Subscribers | High-Def Digest

[ganthc]

If it's like a dollar or something, I'm fine with that. But if it is more than that, I might decide against getting my bd movies from Netflix.

[dugpa]

*Note to self: re-order my queue so all the blu-ray ones at the top and I get them before prices go up.

I agree, if it's a buck or so, I'll stick with it. Any more, forget it. Ironically, prices on discs will probably start going down about the time they start raising theirs. It'll be interesting to see how Blockbuster responds. They are usually pretty competitve with each other when it comes to pricing. The raise may not last long if blockbuster doesn't follow suit.

[ganthc]

Originally Posted by dugpa

*Note to self: re-order my queue so all the blu-ray ones at the top and I get them before prices go up.

I agree, if it's a buck or so, I'll stick with it. Any more, forget it. Ironically, prices on discs will probably start going down about the time they start raising theirs. It'll be interesting to see how Blockbuster responds. They are usually pretty competitve with each other when it comes to pricing. The raise may not last long if blockbuster doesn't follow suit.

I agree. I think Blockbuster may see this as a chance to win over customers. I might actually make the switch if Netflix is too excessive. Normally I don't want to give my money to Ballbuster, but if Netflix jumps the shark on pricing, I could dump them to save money. This is BB's chance to say, "Hey, we aren't raising prices, come join us." It would be devastating for Netflix if that happened, because it would be tough to win back those customers.

[elfman]

Originally Posted by ganthc

This is BB's chance to say, "Hey, we aren't raising prices, come join us." It would be devastating for Netflix if that happened, because it would be tough to win back those customers.

Yeah, I dropped my Netflix account when they dropped HD-DVD. Just a silly little protest, but I had been a member for 6 years. I haven't missed it as much as I thought I would, since I have access to a Blockbuster online/instore account.

[Mr. Furious]

Seriously - that's a lame excuse. As many have pointed out, when Netflix started it was paying more in inflation adjusted dollars than what BD costs today.

That's just total BS on Netflix's side. As the costs for DVD have decreased, Netflix has enjoyed the increased margins. They just don't want to give up their fatter bottom line. Frankly, it's stupid because it may hamper adoption which will ultimately be to their benefit.

[sub780lime]

Originally Posted by ganthc

If it's like a dollar or something, I'm fine with that. But if it is more than that, I might decide against getting my bd movies from Netflix.

agreed. Might not be worth it if its an additional 10 bucks or something.

[powerknowledge]

Yes, this stinks for all of the "real world cost" reasons mentioned above, and I also think it will be short-lived if BB counters with keeping their subscription fees the same.

That said, in my many years of subscription I've seen the plan prices drop twice (currently about $3 less than when I first signed up). So long as the increase doesn't exceed that, I'm really unconcerned, especially given how much money in blind buys Netflix has saved me over the years, and how much many BRDs are still currently demanding at retail. Now, if BRD prices were to fall by 20%...yeah, right...