Netflix CEO Reed Hastings said in their quarterly earnings call yesterday that they will start charging customers a premium for renting Blu-ray discs.
http://www.contentagenda.com/article/CA ... ryid=45173
Will you pay more?
Netflix to charge premium for Blu-ray rentals
-
Shane
- Publisher / Author
- Posts: 1734
- Joined: Fri Oct 20, 2000 5:01 pm
- Location: Xenia, OH
- Contact:
Netflix to charge premium for Blu-ray rentals
Publisher, HDTV Magazine
Your Guide to High Definition Television
Your Guide to High Definition Television
-
spitzcor
- New Member
- Posts: 4
- Joined: Fri Sep 10, 2004 1:07 pm
As usual, It depends upon cost
I can understand that Netflix would want to up the ante for HD content. However, If they plan on doubling the cost, they can forget about getting my business. It's all about competition. I'll just stick to the standard definition stuff and download my HD content. Now, if they keep it free or reasonable, I may keep my Netflix subscription. Otherwise, once I start seeking HD content online, why would I pay extra to get Netflix too?
-
rfowkes
- Major Contributor
- Posts: 77
- Joined: Sat Sep 11, 2004 5:05 am
Renting? What's that? I don't understand the concept! 
Seriously, I'm not surprised at all by this move. I always contended that as soon as the perceived "format wars" were over then all costs of doing business to the consumer if Blu-ray won would be going up - at least for the first few years. After all, the Blu-ray camp has to recoup the massive losses that they suffered while paying off the industry through incentives, greatly deflated SW pricing based on cost, and start up costs for manufacturing facilities (both HW and SW).
Blu-ray as a technology was forced to deflate their prices (everything except the players evidently) in order to compete with HD-DVD and it cost them financially to win the battle. Now they are in the process of recouping some of these costs. It is no surprise to anyone who has any business sense at all that Blu-ray prices are going up, not down at the moment. The only people who don't seem to understand this are the legions of fan boys who talked trash about anything other than Blu and probably have to get permission from their parents before turning the television on. (Just kidding, but not far off the mark in my experience from the neutral sidelines.)
This idea that after the format battle everything would be clear sailing with immediate price reductions is just an example of Pollyanna Economics. It just isn't going to happen until Blu-ray takes off in significant numbers and not with today's market shares. Someday the BluBoys will wake up and realize that winning a single battle has nothing to do with winning a war. It is quite evident that the real target should have been SD-DVD and not HD-DVD. Here's hoping that some maturity emerges before it's too late or Blu-ray will become this generation's Laserdisc. Just because you are better doesn't meet you will win the war with the general public.
My two cents.
Seriously, I'm not surprised at all by this move. I always contended that as soon as the perceived "format wars" were over then all costs of doing business to the consumer if Blu-ray won would be going up - at least for the first few years. After all, the Blu-ray camp has to recoup the massive losses that they suffered while paying off the industry through incentives, greatly deflated SW pricing based on cost, and start up costs for manufacturing facilities (both HW and SW).
Blu-ray as a technology was forced to deflate their prices (everything except the players evidently) in order to compete with HD-DVD and it cost them financially to win the battle. Now they are in the process of recouping some of these costs. It is no surprise to anyone who has any business sense at all that Blu-ray prices are going up, not down at the moment. The only people who don't seem to understand this are the legions of fan boys who talked trash about anything other than Blu and probably have to get permission from their parents before turning the television on. (Just kidding, but not far off the mark in my experience from the neutral sidelines.)
This idea that after the format battle everything would be clear sailing with immediate price reductions is just an example of Pollyanna Economics. It just isn't going to happen until Blu-ray takes off in significant numbers and not with today's market shares. Someday the BluBoys will wake up and realize that winning a single battle has nothing to do with winning a war. It is quite evident that the real target should have been SD-DVD and not HD-DVD. Here's hoping that some maturity emerges before it's too late or Blu-ray will become this generation's Laserdisc. Just because you are better doesn't meet you will win the war with the general public.
My two cents.
-
dvomsaal
- Member
- Posts: 13
- Joined: Thu Sep 02, 2004 3:52 am
Blu Ray Premium
Two questions have to be answered before I decide:
1. What is Blockbuster doing down at the corner store?
2. Are they going to use that premium to improve the service? I received HD-DVD movies from Netflix frequently when that format was alive (actually still have a couple in the queue, though I don't know if they will ship), and it was very, very common for the discs to skip/stutter/freeze because of the "quality" of the surface after many rentals/mailings. Given how ticked off I got when that happened, I can only imagine how thrilled I'd be if my Blu Ray rentals - that I paid a premium for - arrive and do the same thing.
1. What is Blockbuster doing down at the corner store?
2. Are they going to use that premium to improve the service? I received HD-DVD movies from Netflix frequently when that format was alive (actually still have a couple in the queue, though I don't know if they will ship), and it was very, very common for the discs to skip/stutter/freeze because of the "quality" of the surface after many rentals/mailings. Given how ticked off I got when that happened, I can only imagine how thrilled I'd be if my Blu Ray rentals - that I paid a premium for - arrive and do the same thing.
-
Richard
- SUPER VIP!
- Posts: 2578
- Joined: Wed Sep 08, 2004 1:28 pm
- Location: Atlanta, GA
- Contact:
Current pricing - 3 movies in your home
NETFLIX
No monthly limit on DVDs by mail
+
Unlimited hours instantly on your PC
$16.99
BLOCKBUSTER
* Unlimited through the mail
* $1.99 in-store movie exchanges
$15.99 / mo. + tax
OR
* Unlimited through the mail
* 5 free in-store exchanges per calendar month*
$19.99 / mo. + tax
MY CURRENT NETFLIX PLAN
5 Movies
No monthly limit on DVDs by mail
+
Unlimited hours instantly on your PC
$29.99
Have not explored the free downloads although a quick promotion screen showed only old movies already viewed... We have been considering going back to Blockbuster due to the in-store exchange since we are surrounded by 3 locations within 5-10 minutes. Another point is a large part of our movie watching has been replaced by broadcast HDTV.
An extra dollar to Netflix is not going to play much of a role in any future decision for us...
No monthly limit on DVDs by mail
+
Unlimited hours instantly on your PC
$16.99
BLOCKBUSTER
* Unlimited through the mail
* $1.99 in-store movie exchanges
$15.99 / mo. + tax
OR
* Unlimited through the mail
* 5 free in-store exchanges per calendar month*
$19.99 / mo. + tax
MY CURRENT NETFLIX PLAN
5 Movies
No monthly limit on DVDs by mail
+
Unlimited hours instantly on your PC
$29.99
Have not explored the free downloads although a quick promotion screen showed only old movies already viewed... We have been considering going back to Blockbuster due to the in-store exchange since we are surrounded by 3 locations within 5-10 minutes. Another point is a large part of our movie watching has been replaced by broadcast HDTV.
An extra dollar to Netflix is not going to play much of a role in any future decision for us...
-
dabhome
- Member
- Posts: 70
- Joined: Sat Apr 14, 2007 1:22 am
Since not all movies are available on Blu-Ray yet, I will stick with Blockbuster (who still has HD-DVD). Also, I think the $1.99 is for game rentals. When I look online it says all movie exchanges are free. However, you may be limited to a number a month.
One bonus with Blockbuster is when you turn it in at the store you don't have to wait for the movie to be returned before the next one is shipped. So unless you watch multiple movies a day you could get by with 1 or 2 at a time and reduce the cost.
David
One bonus with Blockbuster is when you turn it in at the store you don't have to wait for the movie to be returned before the next one is shipped. So unless you watch multiple movies a day you could get by with 1 or 2 at a time and reduce the cost.
David
-
allargon
- Member
- Posts: 60
- Joined: Mon Jun 11, 2007 1:05 pm
I dumped Netflix the day they dumped HD DVD. I went to Blockbuster and saved a dollar a month. I got faster turnaround on my discs, too. The only minor drawback is a dearth of independent film offerings from Blockbuster relative to Netflix and receiving dumbed down rated R movies instead of the original NC-17.
-
Dave3putt
- Major Contributor
- Posts: 195
- Joined: Sun Sep 05, 2004 7:07 pm
- Location: Fargo, North Dakota
I realize that. My choice is the mail box.
Getting back to the original question, I would pay a small premium for BR rentals. I am still an HD-DVD guy for now, but will get a BR player sometime in the near or not so near future. Hi Deff DVDs are a big part of the total enjoyment from my system, but I do not really want to buy very many of them. The audio is very important to me also, and nothing in the up-conversion world can touch HD-DVD or BR in that area.
Getting back to the original question, I would pay a small premium for BR rentals. I am still an HD-DVD guy for now, but will get a BR player sometime in the near or not so near future. Hi Deff DVDs are a big part of the total enjoyment from my system, but I do not really want to buy very many of them. The audio is very important to me also, and nothing in the up-conversion world can touch HD-DVD or BR in that area.
Dave