Film-Tech Forum ARCHIVE: Netflix raising Blu-ray access fees

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Posted by Bill Gabel (Member # 1105) on 03-30-2009, 02:41 PM:

Got an e-mail notice from Netflix saying that "The charge for monthly Blu-ray access on your 3 DVD at-a-time (Unlimited) plan will increase from $1 to $4 a month."

This is because they are buying more of these discs.

Posted by Mike Heenan (Member # 392) on 03-30-2009, 03:59 PM:

Not sure how to feel about this... but it sure saves money on having to buy the ones I don't want.

Posted by Adam Martin (Member # 641) on 03-30-2009, 04:13 PM:

I'm on the 6-disc plan:

quote:
The charge for monthly Blu-ray access on your 6 DVDs at-a-time (Unlimited) plan will increase from $1 a month to $7 a month.

It just became not-worth-it. I don't really have that many Blu-Ray discs in my queue anyway.

Posted by Bobby Henderson (Member # 840) on 03-30-2009, 04:20 PM:

Here's a news story about it:
Netflix to Boost Blu-ray Fee 20%, Citing More Demand

quote: Meg Tirrell, Bloomberg
March 30 (Bloomberg) -- Netflix Inc., the largest U.S. mail-order movie service, plans to raise rental fees for Blu-ray discs by about 20 percent at the end of April as members increasingly choose the high-definition format over conventional DVDs.

The price increase applies only to Blu-ray rentals and will begin on or after April 27, the Los Gatos, California-based company said in an e-mailed statement. Netflix currently charges $1 a month on top of its membership fee for access to Blu-ray movies, according to its Web site.

Almost 10 percent of Netflix customers are choosing Blu-ray over standard-definition rentals, the company said. Netflix offers more than 1,300 titles in the high-definition format, up 60 percent in six months, it said. The company plans to double the number of subscribers using Blu-ray this year, Chief Executive Officer Reed Hastings said in an interview today.

“We’re evangelizing the format,” Hastings said from Los Gatos. “If Blu-ray gets to 100 percent of U.S. homes like DVD did, then consumers will be watching disc-based entertainment for at least another 20 years.”

Greater consumer adoption would benefit Netflix because it has fewer competitors in disc rentals than in online streaming, where it battles Amazon.com Inc., Apple Inc., Blockbuster Inc. and others for audiences, Hastings said. The CEO, named “Innovator of the Year” yesterday by the Hollywood Reporter, a trade publication, said streaming is a longer-term focus for the company.

Higher Costs

The Blu-ray fee is also rising because high-definition discs can cost as much as 30 percent more than standard DVDs, Netflix said. At Amazon.com, the largest Internet retailer, Warner Bros.’ “Dark Knight” sells for $23.99 on Blu-ray, 37 percent more than the $17.49 asking price for the conventional format.

Under the new pricing model, access to Blu-ray discs at Netflix will vary by plan, starting at an additional $1 for the lowest-priced membership and adding as much as $9 to the highest-priced, the company said. For the $13.99 a month plan, allowing members to have two DVDs at a time and an unlimited number per month, customers will pay an extra $3 for Blu-ray.

At Blockbuster, the largest movie-rental chain, customers can rent two DVDs by mail at a time with an unlimited number per month for $16.99, including Blu-ray. For three DVDs at a time, including Blu-ray, Blockbuster customers pay $19.99, compared with $20.99 at Netflix.

Netflix rose $2.35, or 5.9 percent, to $42.03 at 4 p.m. New York time in Nasdaq Stock Market composite trading. The shares have gained 41 percent this year.

To contact the reporter on this story: Meg Tirrell in New York at mtirrell@bloomberg.net.
Last Updated: March 30, 2009 16:13 EDT

Posted by Geoff Jones (Member # 3668) on 03-30-2009, 08:19 PM:

Regular DVDs have gone waaaay down in price. Will Netflix be lowering the cost to rent those?

I'll be lowering my subscription from 2-at-a-time to 1-at-a-time in response to this.

[Frown]

Posted by Bobby Henderson (Member # 840) on 03-30-2009, 09:44 PM:

quote: Geoff Jones
Regular DVDs have gone waaaay down in price.

No they haven't.

Look at the prices of new release DVDs. They're just as expensive as they've always been.

For example, the single disc DVD of Quantum of Solace typically costs $18.99 right now at retail stores like Wal-Mart. The 2-disc DVD edition is running $24.99. That's a far cry from those $5-$10 bargain bin prices. Nevertheless a lot of people try to imply those loss leader prices apply to anything released on DVD, old or brand new. Many just don't clarify the difference when making price comparisons between DVD and Blu-ray.

The Blu-ray version of Quantum of Solace is still more expensive than the DVD versions, $25.99 to $29.99 where I shopped locally (I ended up buying a copy of the BD at Hastings for $25.99). Still, $25.99 for the BD is still just $1 more than the 2-disc SD DVD edition, and the BD has everything from the 2-disc DVD with all the content being in HD no less.

Posted by Claude S. Ayakawa (Member # 1401) on 03-30-2009, 09:55 PM:

When Blockbuster recently changed their online rental program that had upset me and made me consider going over to Netflex, I am glad I did not. By revising the way I am watching movies I get online and the ones I get from the store, I am still getting six movies a week from my Blockbuster Online membership and a good percentage of them are Blu Ray titles. Blockbuster will have ten copies of MARLEY & ME and SLUMDOG MILLIONAIRE at the store tomorrow and I know I will be able to get a copy of each of them in Blu Ray because I always make sure I am at the store at the time they open on Tuesdays when 'in demand' titles are released.

-Claude

Posted by Joe Tommassello (Member # 4632) on 03-31-2009, 01:16 PM:

In defense of Netflix they do seem to be investing in more blu-ray copies. I had "Quantam of Solace" already. I am on the 3-at-a-time plan and my dad is on 2 so I will paying them $5 per month more. All things considered I still think it's a good deal and like Mike Heenan stated I too save much money not buying titles I don't necessarily want to own.

Posted by Adam Martin (Member # 641) on 03-31-2009, 03:20 PM:

In further defense of Netflix, I've been a customer since back in the days when you could rent a single disc without having an x-at-a-time plan and they carried soft-core porn! This is the first time they've made a change that didn't really agree with me.

Maybe if all I watched were new releases, I'd keep Blu-Ray, but literally out of 340 movies in my queue, only 11 are BD. A $1 surcharge per month was worth it for me, but not $7. I might consider keeping BD and dropping to 5-at-a-time instead of 6, but don't hold your breath.

Posted by Chris Slycord (Member # 4239) on 03-31-2009, 03:39 PM:

And if netflix is already increasing their supply of blu-ray movies, wouldn't the increase not be necessary?

Posted by Claude S. Ayakawa (Member # 1401) on 03-31-2009, 05:19 PM:

How many can say they already have SLUMDOG MILLIONAIRE and SEVEN POUNDS in Blu Ray from their Netflix membership when both of the movies were released today? 'Based on Netflix membership plan that deals only in online shipment of movies, none of you can if Netflix ship new titles only after they are released. With my Blockbuster membership, I was able to pick up both movies today in Blu Ray at a store after I returned two online selections I received and viewed last week. I could have also checked out MARLEY & ME but I decided to buy that so I returned another online selection yesterday and watched PATTON on Blu Ray last night and returned it today. After I return SLUMDOG MILLIONAIRE by tomorrow and SEVEN POUNDS the following day after I had watched them, I should have three new online selections sent to me between Friday and Saturday. This will give me plenty of time to finish watching them and check out three new releases next Tuesday.

By the way, there were ten copies each of MARLEY AND ME, SLUMDOG MILLIONAIRE and SEVEN POUNDS at the Blockbuster store I use in addition to other titles.

-Claude

Posted by Mike Heenan (Member # 392) on 03-31-2009, 06:34 PM:

I can't say that I have, but then again, none of those movies interest me much (saw 2 of them in the theater though). You said that you went there first thing in the morning to get your copies, well most people can't do that as blockbuster only opens at 10 as far as I know, and the working day starts at 8 or 9 for most folks. Blockbuster seems like a good plan because of their stores, but I dont know how their selection compares to Netflix's. Granted, I haven't been in a Blockbuster store in years, but what I recall, none of them had a great selection of older movies, only the newer titles.

Posted by Claude S. Ayakawa (Member # 1401) on 03-31-2009, 07:08 PM:

All I know, Blockbuster works for me, and I am very pleased, [Smile]

The two titles might not be of interest to you but almost everyone standing in line with me at checkout had either one of the three major releases this week in their hands or all three so it is very obvious others do not share your opinion about the movies.

-Claude

Posted by Chris Slycord (Member # 4239) on 03-31-2009, 07:43 PM:

One big advantage to me is netflix's watch online option. If you notice shortly that you hate it, no harm since you didn't have to wait for something to get sent to you. And it knows my general viewing habits, so I get a list of movies I wouldn't have thought to look for anyway (although I'm sure blockbuster does that too).

And anything in my dvd queue will show up that I can view it online if I don't want to wait.

Now if blockbuster had something like that, I'd consider switching.

Posted by Adam Martin (Member # 641) on 03-31-2009, 09:17 PM:

quote: Claude S. Ayakawa
none of you can if Netflix ship new titles only after they are released

Wrong. Netflix ships new releases to open slots on Mondays so that they arrive at your home on Tuesdays.

This really doesn't need to turn into a Netflix vs. Blockbuster topic. We get it. Blockbuster does it for you.

Posted by Claude S. Ayakawa (Member # 1401) on 03-31-2009, 09:41 PM:

Adam, it was not my intention to turn this thread into Netflix VS Blockbuster. I originally wanted to point out the the advantage of belonging to a video rental service that provides me with movies sent to me by mail and the opportunity to exchange each online selection with one at a Blockbuster store. If you or anyone were bothered by my pro Blockbuster view, please accept my most humble apology.

-Claude

Posted by Joe Tommassello (Member # 4632) on 04-01-2009, 04:09 PM:

Claude you brought up a valid point, but as Adam said they do ship new releases on Monday. I had "Quantam of Solace" last Tuesday in my mailbox. Of course I try to time a return (in my case in the mailbox Saturday morning) so I have a good shot at getting one of the new releases - which I typically keep at the top of my queue - shipped on Monday...a strategy which has been increasingly successful.

quote: Chris Slycord
And if netflix is already increasing their supply of blu-ray movies, wouldn't the increase not be necessary?

I would love to see some statistics on how how much their BR demand is growing. Bet it's pretty fast.

Posted by Claude S. Ayakawa (Member # 1401) on 04-01-2009, 05:00 PM:

Joe,

Now that Netflix has increased the amount they charge for Blu Ray online rental, I am sure Blockbuster might do the same.. The membership plan I have with Blockbuster consists of three movies at a time with an even exchange at the store and it does not matter if it is Blu Ray or not. My plan now cost about $38.00 a month but it used to be slightly less than $20.00. Because I see very little movies when they play their first run engagements in theatres, my Blockbuster membership is still a bargain.

-Claude

Posted by Mike Heenan (Member # 392) on 04-01-2009, 06:21 PM:

Wow, $38 a month? So there is a catch to being able to get discs in the stores right away without having to ship them back.

Posted by Claude S. Ayakawa (Member # 1401) on 04-01-2009, 06:47 PM:

Watching a movie with my senior discount in a theatre is $6.75 each but I am assured of watching three recent theatrical movies in HD on Blu Ray per week totaling twelve in a month. If I saw all of these movies in a theatre not including snacks at the concession, the total cost will come to $81.00. On top of the twelve in store movies, I get an additional twelve that are sent to me in the mail. Being a person who like to watch a film wIth no distraction such as crying babies, talkative people with no consideration for others and other disturbing factors such projectionists letting the screen go dark twice during the middle of the credits at theatres, $38.00 for a month of Blockbuster membership is a fantastic bargain!

-Claude

Posted by Adam Martin (Member # 641) on 04-01-2009, 09:08 PM:

quote: Claude S. Ayakawa
Blockbuster might do the same

That's probably true, but for now they are (without naming names) bashing the Netflix decision by posting "we don't charge extra for Blu-Ray" comments on the Blockbuster Blog and on Twitter. See post at hackingblockbuster.com.