Netflix to raise prices for Blu-ray movie rentals
Netflix today said it would raise prices by about 20% for subscribers who rent Blu-ray movie discs, saying the premium would allow the movies-by-mail service to stock more copies of the high-definition discs to keep pace with demand.
Subscribers who elect to only receive standard DVDs will not be charged the additional fee, which will add $4 to the $17 monthly fee paid by those who rent three movies a time. The new rates go into effect April 27.
Netflix CEO Reed Hastings said Blu-ray discs now account for almost 10% of the company's business. The company's Blu-ray selection has grown by 60% over the last six months to more than 1,300 titles. Nearly all new releases are now available on Blu-ray, which sells for about 30% more than DVDs. (A copy of "Slumdog Millionaire" that sells for $17 for the DVD retails for $26 on Blu-ray.)
The new pricing reflects the premium for high-definition video, Hastings said.
"If you look across cable systems, satellite and also in the downloading space, high definition comes at a premium," Hastings said. "So this brings us into alignment with all the other channels for high-def."
A full explanation of the new pricing can be found on the Netflix company blog.
--Dawn C. Chmielewski
It's the second price hike for Blu-Ray in less than 6 months. It's a price gouging switch and bait and shouldn't be tolerated.
Did you happen to notice their stock jumped 5% in the few hours after the price hike announcement went out?
I'm sick of these automatic price hikes for loyal customers and am subsequently downgrading my Netflix service. I won't stand for that kind of treatment.
Posted by: Susan | March 30, 2009 at 02:11 PM
I still hate Netflix. They roped me in with a promise of three movies at a time for a reasonable rate per month. However, I usually watch my movies fairly quickly. It first became pretty clear that they weren't sending any movies out on weekends. OK, says I, a pain in the butt, but they never promised they would work weekends.
But eventually i realized a lot of the movies at the top of my queue were taking months and months to get to me. I only realized it when Netflix was sued because they were pursuing a course of giving lower priority to the queues of people who were returning movies quickly.
And if you want to complain? How easy is it to even get an email address to complain to nowadays, because when I subscribed to Netflix, the only way you could complain was if you hijacked the criticism posts for a particular movie or if you used the email address given for damaged DVD's.
They want your money and they will bait and switch you to death to get it, and that attitude clearly comes from the very top of their ranks. That they would suddenly decide that Blue-Ray merits them a big pay raise is just the latest piece of evidence.
Posted by: guity | March 30, 2009 at 03:17 PM
So this put them in line with everyone else? Why can't a business now a days offer lower prices based on where everyone else is? Did they forget that we are in a recession and the only reason people subscribed to Netflix was because it was affordable to rent a movie and stay at home. I wonder if Arnold Schwarzenegger is the CEO of Netflix? Netflix get a clue, people are losing their jobs and the recession hasn't ended. Force the makers of BluRay to lower their prices. Put the burden on them not us or I'll cancel my membership ASAP!
Posted by: Freddog323 | March 30, 2009 at 03:36 PM
Well, Netflix can raise prices as they feel like. I dont see how it is a bait and switch. You can cancel your service at any time, and they are giving you ample notice. Also if the price increase does not go well in this recession, it will be Netflix that loses customers. Furthermore, since its a recession, Netflix wants to be on par with other servcies in order to get the most profit which is understandable. From my point of view, I will not continue using Netflix because of this price increase and will find out "other" ways to get bluray video.
Posted by: VJ | March 30, 2009 at 03:55 PM
Comparing the price of one dvd against its bluray counterpart is not good research or good reporting.
On Amazon, the 2 disc special edition of 300 is $19.99. The bluray version is $17.49.
By that logic, users who enable bluray on their netflix accounts should receive a credit, right?
Posted by: Billy | March 30, 2009 at 05:21 PM
My Blu-ray fees went up from $1.00 to $5.00 per month. Ludicrous.
Posted by: big dog | March 30, 2009 at 05:23 PM
What Netflix is claiming in this article is deceitful. They're increasing more than 20%. I get the 4 DVDs per month for about $24.00, plus $1.00 for Blu-ray access. Now it's going to be $5.00 for Blu-ray access on top of the $24.00. I understand the need for somewhat of an adjustment, but this is essentially a 500% increase! They have the power to reduce Blu-ray costs by pressuring the producers of Blu-ray. I'm thinking of canceling membership.
Posted by: The answer | March 30, 2009 at 05:33 PM
Total ripoff. I have an 8x plan and watch a great deal of classic and foreign films. I watch a Blu-Ray MAYBE once a month.
So essentially I'm being charged $9 every time I watch a Blu-Ray.
I've always been a fan of Netflix, but they've gone too far here. The $1/mo. was reasonable, this is just out of control.
I've always felt that Netflix was pro-consumer, but to charge me $9 every time they ship a Blu-Ray movie to me is just a f'n ripoff.
Sorry Netflix, but the love affair is OVER. Get your junk and GET OUT!
Posted by: CEE TEE | March 30, 2009 at 05:54 PM
Because of netfix is raising their prices for blueray movies i was going to join membership now I will not.
Posted by: Ray | March 30, 2009 at 06:05 PM
I seriously doubt this has anything real to do with BluRay cost issues.
Netflix doesn't want to lose ground to Blockbuster, iTunes, or Red Box by increasing its rental fees for all of its customers. So they raise fees substantially for their BluRay customers who, presumably, have greater incomes to afford BluRay players and HDTVs, and who are less likely to complain and/or boycott over $3/month.
Posted by: Justin | March 30, 2009 at 06:31 PM
I love Netflix's selection, but I won't stand for this price gouging!
They didn't just double the price of their blu-ray access....they QUADRUPLED it!!!
They say that it is because of Blu-Ray's higher prices....well....Blu-Ray prices are coming DOWN, not going UP!!
Like the others have said above, sorry Netflix, the love affair is over!!!
In a recession (depression) like we are in now, it shows how mauch they care (DON'T) about their customers and their bottom line (ALL THAT COUNTS!)
I just cancelled my membership!!
An I am recommending all those people that I know that have Netflix memberships to do the same!!
Posted by: MovieLuvr | March 30, 2009 at 07:27 PM
Netflix claims that they have to charge more because Blu-Rays cost so much more. Did it ever occur to them that the costs of Blu-Ray isn't worth it right now and that's why I'm renting instead of buying? I actually don't think they care. This is a move to stick it to blu-ray and hopefully blu-ray manufacturers get the message. I'm sorry but X-men 3 isn't worth 35 dollars. Not now or ever. The price needs to come down and not keep going up.
Posted by: Nash | March 30, 2009 at 07:31 PM
I don't get what the hubbub is about...if you don't want to pay for the Blu-Ray, then don't pay for it. No one is holding a gun to your head. Stick to standard-def if you're gonna complain.
Posted by: Crag | March 30, 2009 at 07:40 PM
This is completely out of line and ridiculous, they will lose more money by doing this price hike, personally I did stand for it and downgraded from the blu-ray access. The only reason I won't switch to BlockBuster is because the price is still lower for netflix. I hope more people do the same thing and send Netflix a message.
Posted by: NetflixIsADisgrace | March 30, 2009 at 08:03 PM
Have blackberry'd my cancel date reminder 1 week before the rate change. Unless they drop their price back to a reasonable level, I'm gone.
That 20% increase is all smoke and mirrors. Blue-ray went from $1 to $4; that's insanity! :)
Posted by: Randy OC | March 30, 2009 at 09:39 PM
Ugh.
Why is everybody starting to charge stuff or increase their prices nowadays? What a way to pass on the effects of the recession to the people... Making them pay more for stuff that they use to forget that there even is such a thing going on!
Hmmm I guess I'll just go back to downloading torrents to watch my movies. Gah.
Posted by: wow gold | March 30, 2009 at 10:11 PM
i was on the 6 at a time plan and happy to give them my 36.99 a month with blu ray, as i enjoyed the service and it was timely, now they want 42.99 a month for blu ray, i just cancelled them, i will have to find a new way to rent blu ray discs but for being what i thought was a loyal customer for them to jack the rate up 20% is just bad business, i hope they lose a whole crap load of subscribers and i hope to read about them going belly up in a year or so
Posted by: ron | March 30, 2009 at 10:44 PM
They will lose business to other resources as this will only push online access to the forefront or piracy, or both during a recession. Or perhaps someone can exploit this to bring back the local rental shops which seem to be vanishing, not including Blockbuster.
The problem with an online service is, how bad will the compression be for legitimate online HD content? Anyone notice how pixelated "Digital Quality" HD broadcasts are on satellite and cable? Does iTunes or other services look any better?
Posted by: Bobby | March 31, 2009 at 07:45 AM
I got fed up with Netflix a few months ago when my DVDs kept arriving slower and slower. I decided to go digital and compared all of the digital services and got a VUDU Box over christmas when it was on special for $99. I have enjoyed it so far and no waiting for movies to arrive by mail.
I think with these price increases I could rent the same movies on VUDU in the highest format for less money.
Netflix was great when they first started but they have gotten sloppy with their service.
Posted by: priceincreases | March 31, 2009 at 02:32 PM