Netflix to charge extra for Blu-ray rentals

Tue Apr 22, 2008 10:59AM EDT

See Comments (22)

Get ready to pay a "modest monthly premium" if you want to rent Blu-ray movies from the by-mail DVD giant.

Speaking during a conference call with analysts, Netflix CEO Reed Hastings said the extra charges are coming because "purchasing Blu-ray DVDs costs more, both at retail and wholesale, than standard definition DVDs" and that "consumers are used to paying more for high-definition content," according to Crave.

So, let's see if I've got this straight...HD viewers are used to getting gouged, so we'll just gouge 'em some more? Great.

Up until now, renting HD DVDs and Blu-ray movies on Netflix was a simple matter of selecting a radio button in your account preferences; monthly subscriptions fees remained the same, regardless of whether you were renting HD movies or not.

Hastings didn't say how much the "modest monthly premium" would be, or when it would go into effect.

But as someone who just enabled Blu-ray movies on his account (and who, as it turns out, doesn't have all that many Blu-ray movies in his queue), I'm pretty annoyed to learn that I'm about to be taxed for my Blu proclivities.

Then again, Netflix could have simply raised prices for everyone to cover the added cost of Blu-ray movies—a move that wouldn't have been too popular (or fair, for that matter) for those who are just renting standard DVDs. And yes, Blu-ray discs are significantly pricier than DVDs—about $35 at retail, compared to about $20 for your typical DVD movie.

So, here's the big question: How much will the Blu-ray premium be? Hopefully, we're just talking two or three bucks a month—personally, I wouldn't be thrilled, but I could live with it. But if the fee starts creeping into the $5-$10/month range, well, expect Blu-ray-viewing Netflixers to start jumping to Blockbuster—and hey, I might be one of them.

What do you think? How much of a Blu-ray premium is too much? Would you defect to Blockbuster if the Blu-ray fees are too high? And for those of you who are just renting standard DVDs, does it sound like a fair policy?

Related:

Netflix to charge more for Blu-ray subscriptions [Crave]

Comments on Netflix to charge extra for Blu-ray rentals

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  • 6 Posted by jirojas on Thu Sep 3, 2009 4:35PM EDT Report Abuse

    I will probably switch to a cheaper package at first. If they keep going up then it will be bye-bye for Netflix.

  • 7 Posted by ockemon on Thu Sep 3, 2009 7:43PM EDT Report Abuse

    They should have known it cost more to buy Blu from the beginning and charged the extra amount from the get go if it were neccessary. It's rediculous to charge a higher amount for a service that I already receive. I'll find another way to get my movies if this happens. I'm already upset with the selection of "watch now" titles. If I wanted to watch an 80's flick I'd break out my VHS. Get with the program Netflix! The future is now and I want to watch new releases by clicking a button, not waiting 2 days for the mail.....

  • 8 Posted by howard_b_austin on Thu Sep 3, 2009 4:21PM EDT Report Abuse

    Somewhere in the $3 - $5 range would be my max. Eventually you know that the price of Blu-Ray discs will drop, and it will be interesting to see if they also drop the upcharge if that happens. I have been with Netflix since they opened and have been happy with them all along, but if they do not handle this well, it could be the start of dissatisfaction among otherwise happy customers.

  • 9 Posted by louisblanc7 on Thu Sep 3, 2009 6:57PM EDT Report Abuse

    Talking about old thinking! This is why companies like Apple and Google will continue to make gains into the future while companies like Sony and their ilk will eventually greed themselves firmly into the past. Unfortunately looks like Netflix is also using this kind of stupid rob and cheap them business tactic. HD-DVD vs. Blu-Ray was the dumbest thing to happen to the consumer in a very long time. Now that BD is the "winner" you would think these consortiums would be doing everything possible to persuade the masses to their product. Instead lets gouge them. Now that my HD-DVD is obsolete already and Blu-Ray has the old guard backing it. Apple TV or VUDU look more like the future to me.

  • 10 Posted by akaantz on Thu Sep 3, 2009 2:48PM EDT Report Abuse

    I haven't seen enough benefits of Blu-ray to warrant a rate increase. My movies haven't been that enhanced yet... I'll just go back to DVD format if they hike it over 3 bucks a month...

  • 11 Posted by fcaraco on Thu Sep 3, 2009 3:59PM EDT Report Abuse

    It figures that is goes this way... Well put saying that since us Blu-ray users are used to being gouged then why not pile on some more. A place like Netflix buys a movie and rents it out countless times. So what if it takes a handful more rentals to start seeing a profit, they make money hand over fist on them anyway. I don't like it one bit to be honest. I was seriously considering going with Netflix so that I can see more Blu-ray movies (my local Blockbuster does not offer them yet in store). Now I will definitely go and sign up with Blockbuster Online and hope that they do not follow suit with Netflix on this decision. I hope that current Netflix customers raise enough of a fuss over this (by canceling their accounts) to make them know that this is an outrage.

  • 12 Posted by rapmetal47 on Thu Sep 3, 2009 8:29PM EDT Report Abuse

    This is really stupid. God, those corporate thieves. What's next, we have to pay to park at the gas pumps? Thanks for the article, Mr. Patterson.

  • 13 Posted by hingarfi on Thu Sep 3, 2009 4:19PM EDT Report Abuse

    I'm with akaantz. I have watched about 25 HD-DVD titles and do not currently have Blu-ray equipment. Having tasted HD, I am no longer that enthralled with the picture quality. It is "out of my blood" so when I can add BR player to my HTPC for $100 I may give BR a try but $3/month or 0.50 per BR disk will be my limit. In the meantime, DVD is all I need.

  • 14 Posted by bikeboywon on Thu Sep 3, 2009 3:07PM EDT Report Abuse

    Hi all Sony is geting thier way and ripping us off yes we would leave netflix. people where i live are no longer buying blu ray sony has made us happy to buy a plain DVD .with our new tv's we get a great picture anyway. don't need blu ray.

  • 15 Posted by mwbudd on Thu Sep 3, 2009 7:31PM EDT Report Abuse

    Not another cent. This is why DVR's were invented. If my bill goes up at all I will cancel my account and stay away for one year. Let's see how Netflix likes that for starters.

  • 16 Posted by seawav26 on Thu Sep 3, 2009 9:11PM EDT Report Abuse

    maybe the charge could work where it is say .50 extra charged to the acct per movie you rent? This way if you rent only 1 or 2 you are not charged much more. I don't know man everything is going up all at the same time but that is a whole different grief session. For now .. I refuse to buy a Blu Ray yet so I am not too worried about it.

  • 17 Posted by michaelah1967 on Thu Sep 3, 2009 7:17PM EDT Report Abuse

    Heck if you can afford a Blue Ray player you can afford the extra charges as well. Personally I'll be sticking with the good old fashioned DVD.

  • 18 Posted by ronrasing on Thu Sep 3, 2009 8:50PM EDT Report Abuse

    I can see why Netflix would charge extra for Blu-Rays: unless you put it 1st in your queue before the release date, you can't rent a popular Blu-Ray for weeks (newly released DVDs do not have this problem)! So, if it means I have to pay and extra buck or two to rent a Blu-Ray a lot quicker, then so be it.

  • 19 Posted by rogueist on Thu Sep 3, 2009 8:49PM EDT Report Abuse

    I could care less about BluRay. Now if they were to offer HD discs again, than I am all for that

  • 20 Posted by m_persson@att.net on Thu Sep 3, 2009 7:32PM EDT Report Abuse

    Being that there is usually a long wait for the popular Blue Ray titles they need to charge a per rental fee as I only get about 1 Blue Ray rental a month as it is.

  • 21 Posted by cqb1969 on Thu Sep 3, 2009 3:30PM EDT Report Abuse

    It's amazing how stupid CEOs can be. If he just said Blueray costs more, so we need to charge a little more, people would not have been happy, but there would have been less complaining. Then he has to go and say that people are used to paying more, so let's join the club and charge more. Stupid. I think one workable way to do this though would be to have a small additional charge each time you rent a Blueray disc rather than a monthly membership increase.

  • 22 Posted by kieranaj on Thu Sep 3, 2009 4:50PM EDT Report Abuse

    saw this coming, why not more $$ on top of my already monthly rental fee.

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