Video Asylum

Posted by jsm (A) on April 08, 2009 at 10:40:11

In Reply to: RE: Netflix jacks the price for Blu-ray rental posted by racerguy on March 30, 2009 at 13:49:52

The note I got said, that, since Blu-ray discs cost more, they have to charge more. My impression is that the costs of todays' Blu-ray discs really aren't that much more than standard DVDs did just a few years ago. Some standard DVDs have always cost a lot more (e.g., the Criterion Collection), but they never charged more for renting those to what I expect is a smaller demand; oops, maybe I shouldn't give them ideas. What price Netflix pays for Blu-ray discs is another question, but it must be a lot less than you or I would pay. Or course, I have no idea of their complete business model and how much the cost of discs plays into their profits. Most Blu-ray discs that they are buying are relatively popular titles and should attract rentals. Having all Blu-ray titles available could be attractive for people considering buying a player who would then join Netflix if the price is right.

So my question: is the cost of the discs likely to be a cost-driver for them or an excuse for raising charges for people they expect will likely be willing to pay? Probably we can only guess.

Joe