Netflix: We'll Charge Extra For Blu-ray Rentals (NFLX)

Dan Frommer | April 21, 2008 7:42 PM

blue-crush.jpgWe had wondered how Netflix (NFLX) would handle the fact that hi-def Blu-ray discs -- which will increasingly make up a bigger percentage of its library -- cost more to buy than standard-def DVDs. Now we know: The company will charge a "modest monthly premium" for access to Blu-ray discs sometime later this year, CEO Reed Hastings said this evening during the company's Q1 earnings call.

No further details, but we're guessing Netflix will charge $1-2 per month for subscribers to gain access to hi-def movies. Which makes sense, especially compared to the company's other options: Raising prices across the board, which would slow growth and piss off customers without hi-def players. Or settling for lower profit margins, which would piss off Wall Street.

See Also: Netflix Q1: Tanking On Guidance

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29 Comments

me said:
It's better for customers to back Blockbuster.com form time to time, so that the rental price will remain low (i.e, do make Netflix too big and too arrogant). I canceled my Netflix account during their web outage time and accepted Blockbuster's free month trial.
me said:
Fixed typo:
(i.e, *don't* make Netflix too big and too arrogant)
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If and when this happens, I will call and threaten to switch to Blockbuster, and then they'll lower the price and maybe then some. This would be ridiculous.
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