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In Reply to: So now Netflix is going to charge more to rent BD movies. posted by jsm on April 22, 2008 at 16:13:19:
Blu-ray is a niche product, and is destined to stay a niche product for the foreseeable future (ref Reed Hastings' comments that "The company expects the percentage of subscribers who rent Blu-ray to stay in the single digits this year").So Netflix has to maintain an essentially redundant library for a tiny percentage of its customers, which increases Netflix' costs.
As has been mentioned here previously, the Blu-ray prices are going up, not going down, which increases Netflix' costs.
Those customers have already proven that they are willing to spend more on equipment and media than run-of-the-mill DVD customers.
From a business standpoint, it makes perfect sense to charge Blu-ray renters more.
Edits: 04/23/08
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Follow Ups
- It's not surprising - racerguy 08:03:49 04/23/08 (5)
- So I guess I've been lucky. - jsm 16:45:39 04/25/08 (2)
- not really - Jack G 05:54:18 04/26/08 (0)
- RE: So I guess I've been lucky. - racerguy 20:55:50 04/25/08 (0)
- "is destined to stay a niche product for the foreseeable future " - Jack G 12:16:36 04/24/08 (0)
- New technologies cost more than old technologies. This is hardly unique to blu-ray NT - Jazz Inmate 20:36:26 04/23/08 (0)
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