Netflix's Blu-ray Tax: $1 Per Month For HD Movies (NFLX)

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blue-crush.jpgIn April, Netflix (NFLX) said it would start charging its subscribers who want access to hi-def Blu-ray movies a "modest monthly premium" to make up for their higher cost. Today, we know the company's definition of "modest" -- $1 per month, starting in November. Sounds about right to us.

Netflix tells us it's adding the surcharge for all subs who are classified as Blu-ray members, which means they have a setting turned on for their account that defaults their rentals to Blu-ray discs over standard DVDs.

Who does this include? If you've ever added a Blu-ray disc to your rental queue -- and haven't turned this setting off since then -- you're considered a Blu-ray member, according to a Netflix rep. So if you want to continue receiving Blu-ray discs by default, do nothing, and Netflix will add the $1/month surcharge beginning next month. If you don't want to receive Blu-ray discs, and don't want to pay $1/month extra, you can turn the feature off in Netflix's account control panel.

See Also:
Not Recession-Proof, Either: Netflix Knocks Down Guidance
Netflix Streaming Gets Much Better With Starz Deal. More Coming?
Apple's Best Hope At Making Apple TV A Hit: DVDs



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17 Comments

EVERYONE who already shelled out $500 for a Blu-Ray player will pay the extra $1/month without blinking.


I never said they wouldn't whine. Only they wouldn't blink. If you paid that much money to have your Blu-Ray player, you're gonna pay a buck a month to use it.

deecee said:
Actually this makes quite a bit of sense. The cost for discs purchase, or the share to the studio partner for rev-share discs (which comprises a lot of the more popular titles in standard format, if they are they are using the same methodology for blue ray as they do for standard DVD), would be higher for these discs.

Besides, the type of customer that dominates the participating bloggers on netflix are probably the types that are low margin (ie, users renting more than 6 per month, especially if they are new vs. catalog titles).

Effect on NFLX: positive to neutral.

joel (URL) said:
oh come, they have direct deals with all of the studios and pay "special" pricing, not the normal wholesale! another means for them to eek out more revenue (but will have to share it with the studios)

i'll wait for downloads (before dvd/bd release) on the Playstation Network (like HANCOCK)


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