Netflix plans to raise prices for Blu-ray subscribers
An upsetting move from Netflix who recently lowered subscription rates, President and CEO Reed Hastings recently announced a rate hike for Blu-ray subscribers was in the works.
Purchasing Blu-ray DVDs costs more both at retail and wholesale than standard definition DVDs, and consumers are used to paying more for high-definition content in every other channel, including video rental stores, video-on-demand, and cable channels. Because of the higher cost of Blu-ray and the consumer expectations around high-def content, we are planning on implementing a modest monthly premium for access to Blu-ray some time this year.
He did not give any information concerning when this increase would take effect or how much it will be. I hope it’s no more than $1.00 per month.
While I do agree that Blu-ray is a higher quality product and worth the extra cost, I feel this is not a competitive move while Blockbuster is offering this for free, plus they include free rentals when you return a movie to a store location. While I prefer the Netflix service, if Blockbuster starts offering more features for less I might have to revisit that option.