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?
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Comments on Netflix to charge extra for Blu-ray rentals
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2 Posted by callenf on Thu Sep 3, 2009 3:16PM EDT Report Abuse
If they raise the price on Blu-ray rentals then I will cancel my account. Period. If everyone did this then they would have no other choice than to keep the prices where they are now.
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3 Posted by bigdavecc44 on Thu Sep 3, 2009 3:07PM EDT Report Abuse
If no one paid the extra fee to rent Blu-ray movies than they wouldn't be able to charge a fee at all. Sure, you might have to go a whole year of not renting Blu-ray movies, but who cares? It's the same principle behind movie theater snacks and sport stadium concessions. If no one paid the money, they wouldn't be able to charge ridiculous prices. Of course, it will never work, because their are too many people that are stupid with their money and will continue to pay the high prices.
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4 Posted by jlarz20 on Thu Sep 3, 2009 4:36PM EDT Report Abuse
$5 is pushing it, considering there still are not a ton of BlueRay movies, at least ones I like...
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5 Posted by damienanderson228 on Thu Sep 3, 2009 3:34PM EDT Report Abuse
wow!! this sux, but i knew it wouldn't be long. "the man" strikes again.
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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.
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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.....
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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.
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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.
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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...
1 Posted by matt_archbold2002 on Thu Sep 3, 2009 7:11PM EDT Report Abuse
I'd say my max would be about 5.00 more per month for Blu. I dont see myself paying more than 5.00 extra per month for bluray movies. If it were to be more than that, i'd probably go somewhere else.