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Netflix sees half million Blu-ray subs in current qtr

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Old 10-21-2008, 06:01 AM   #1  
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Default Netflix sees half million Blu-ray subs in current qtr

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DVD rental company Netflix Inc said on Monday it expects about 500,000 of its 8.7 million subscribers will be Blu-ray subscribers in the current quarter.
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Old 10-21-2008, 10:14 AM   #2  
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That leaves 8.2 million subscribers who won't pay the extra fee ($1.00 to cover the higher associated BluRay costs).
This constitutes about 7% of Netflix total subcribers...no silver lining here>
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Old 10-21-2008, 11:15 AM   #3  
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That leaves 8.2 million subscribers who won't pay the extra fee ($1.00 to cover the higher associated BluRay costs).
This constitutes about 7% of Netflix total subcribers...no silver lining here>
Maybe it just means 8.2 million don't have blu-ray yet. There's nothing to indicate the other subscribers haven't signed up because they don't want to pay the extra fee.
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Old 10-21-2008, 01:38 PM   #4  
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With a potential 8.2 million being charged a $1.00 fee for BluRay disc's they may or may not be able to play (sans a BluRay player) of course they should expect a increase in BluRay subscription rate... some simply won't take the required opt-out option.
Just seems a little underhanded to charge ALL for a technology they may not have.
Again just wondering how much the BluRay Association had with decision (if any).
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Old 10-22-2008, 05:56 PM   #5  
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When you join Netflix, Bluray is turned off. You have to turn it on in order to get access to Bluray titles. I did this. However, when Netflix sent me an email saying they had a $1 surcharge, I turned my blu-ray access off. The simple matter is that I rarely get a bluray title from Netflix, and I see no reason to pay extra for something that I rarely use. Most of my netflix rentals are old TV shows in DVD format. The only thing that I want to see in BR is new releases, and those I normally rent from the local video store.
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Old 10-23-2008, 03:26 AM   #6  
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Maybe it just means 8.2 million don't have blu-ray yet. There's nothing to indicate the other subscribers haven't signed up because they don't want to pay the extra fee.
Of course it means 8.2 million either don't have a Blu-ray player or aren't paying the fee. At this point, all we could do is guess but the $1 or $2 fee seems fair to me and surely no more than 200,000 thousand are refusing to pay it. Blockbuster hasn't ever charged me a fee so I assume they haven't started charging one yet. It would be interesting to see if Blockbuster has a larger percentage of Blu-ray subscribers. Every Blockbuster store I have been in recently is now carrying Blu-ray.

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Old 10-23-2008, 10:47 AM   #7  
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I have had Netflix for several years and as soon as they started charging extra for Blu-Ray rentals I opted out of the increase. I have only rented two Blu-Ray discs in my entire Netflix history. Blu-Ray is struggling for mass acceptance and if you think about it TPTB should be begging people to go Blu at this point. Nobody wants to pay extra for a service they RARELY use. I've used the streaming VOD feature a lot more since I connected my PC to my HDTV. As a matter of fact I would be more than willing to pay extra for the Video on Demand once it goes HD as opposed to $1.00 per month for Blu-Ray!
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Old 10-24-2008, 06:11 AM   #8  
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I have had Netflix for several years and as soon as they started charging extra for Blu-Ray rentals I opted out of the increase. I have only rented two Blu-Ray discs in my entire Netflix history. Blu-Ray is struggling for mass acceptance and if you think about it TPTB should be begging people to go Blu at this point. Nobody wants to pay extra for a service they RARELY use. I've used the streaming VOD feature a lot more since I connected my PC to my HDTV. As a matter of fact I would be more than willing to pay extra for the Video on Demand once it goes HD as opposed to $1.00 per month for Blu-Ray!
This is a business and Blu-ray should be offered at a profit and if a portion of the market isn't willing to pay the amount necessary for the product to be profitable, offering the Blu-ray rental service at a loss won't help. Blu-ray is about 10% or so of the retail sales market and it may be that it also represents about 10% of the profits, but neither DVD nor Blu-ray is generating great profits right now. Blu-ray is probably still less than 10% of the rental market and Netflix was operating at basically breakeven last time I checked and Blockbuster was operating at a loss. I still expect Blockbuster to raise fees to match Netflix, Blu-ray inventory costs more and therefore requires higher fees, this isn't rocket science.

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Old 10-27-2008, 10:26 AM   #9  
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One thing to understand though is that Netflix wasn't charging extra for Blu-Ray rentals. If a person is paying a monthly rental service fee and then all of a sudden they single out the format that is making less money that is just bad business. Why would people pay more to rent a product they are not buying? It would make sense to just continue to include Blu-Ray as a part of the monthly Netflix membership the way they have their Video On Demand service. This is one of the reasons I believe Blu-Ray will remain a niche format. Blu-Ray is the new Laser Disc! Nice for High Def fanatics like most people here but for the average joe movie/tv watcher not so much.

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Old 10-27-2008, 11:04 AM   #10  
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Originally Posted by Raul2106 View Post
One thing to understand though is that Netflix wasn't charging extra for Blu-Ray rentals. If a person is paying a monthly rental service fee and then all of a sudden they single out the format that is making less money that is just bad business. Why would people pay more to rent a product they are not buying? It would make sense to just continue to include Blu-Ray as a part of the monthly Netflix membership the way they have their Video On Demand service. This is one of the reasons I believe Blu-Ray will remain a niche format. Blu-Ray is the new Laser Disc! Nice for High Def fanatics like most people here but for the average joe movie/tv watcher not so much.
Like you said, you don't use it. For those of us who do get blu-ray rentals, they extra $1 is nothing. 95% of all my rentals are blu-ray. In fact, if it wasn't for my wife having her own queue, 100% would be.
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Old 10-27-2008, 11:27 AM   #11  
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It is the principle of the fact that Blu-Ray is not a standard. I just don't understand how the price increase is justified if they want mass adoption of Blu. Video on Demand through Netflix is the perfect example. Originally there were limits based on memberships and eventually it just became part of the overall deal. Blu-Ray should be the same because it is only 10% of the overall market. The point is higher costs is the main reason Blu-Ray is failing to capture more buyers as it is. If it costs more to rent Blu just like it costs more to buy Blu and average viewers cannot see a fundamental difference between HD and SD we cannot ever expect mass adoption of the format. Netflix is going to play a bigger role in the future of how people view their content and when it comes down to it I think streaming will overtake Blu-Ray sooner than later.
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