Netflix raises prices for Blu-ray subscribers
Price boost might be $1 to $2 a month
By Danny King -- Video Business, 8/5/2008
AUG. 5 | Netflix began raising monthly rates for subscribers wanting access to Blu-ray Disc titles in an effort to account for the costlier high-definition discs.
The largest movie-rental service via mail last week started raising monthly subscription rates by $1 to $2, according to home entertainment blogs such as EngadgetHD.com. Netflix spokesman Steve Swasey confirmed that the company is testing pricing, though declined to give further details.
The company first said it would raise Blu-ray prices during its first-quarter conference call in April. CEO Reed Hastings said on the second-quarter conference call July 25 that Blu-ray price increases would take place “very shortly” and estimated that the percentage of subscribers renting Blu-ray discs was in the “low single digits.”
Netflix announced its exclusive commitment to Sony’s Blu-ray format in February, the same month Toshiba said it would discontinue competing format HD DVD. Netflix had about 400 Blu-ray titles at the time. Now the company has 720 Blu-ray titles among its more than 100,000 in total inventory.
Netflix’s subscription plans range from $4.99 a month, which allows customers one DVD at a time and two per month, to $23.99 a month, which allows subscribers to have as many as four DVDs at a time, unlimited monthly rentals and unlimited video streaming to personal computers.
