Netflix Admits the Blu-ray $1 charge is not buying more discs

[SatinKzo]

Netflix to Blu-ray Subs: Screw You!


Basically, netflix says they are not increasing blu-ray numbers with the extra $1 they are charging.

Also a small note that Netflix did confess that frequent renters are "penalized" for the amount of movies they get.

 

[JamesJ]

I kinda see both sides here (especially cause I pay a dollar more a month) but...what the guy said is true...it probably dosent make sense to buy up ALOT of copies of blu ray....remember Everyone thinks they can run a business, but not everyone can, I get tired of reporters and people saying what they think is best for company when they have no idea and havent seen their financial sheets.

 

[SatinKzo]

I hear ya Stuart. I just posted it for the facts. I personally have not had a blu-ray availablility issue with netflix. I actually don't remember netflix actually stating they would increase blu-ray amounts with the $1. I just remember it being stated it was due to the higher cost of the discs. I think the increased amount of discs was more internet blog comments and hopes of subs.

Since I think netflix stated they only have 500,000 blu-ray subs in their 9 million total subs, I can't say they need to have more copies of each blu-ray movie yet based on my personal experience with getting the blu-ray movies.

Edit:
Just for fun, I just logged into my in-active BB account and put all my netflix movies in the blockbuster queue. Of the 34 Blu-ray movies, only 4 were available at blockbuster, 24 were available at netflix, 5 were short-wait, the rest were long wait.

 

[HD MM]

Netflix to Blu-ray Subs: Screw You!


Basically, netflix says they are not increasing blu-ray numbers with the extra $1 they are charging.

Also a small note that Netflix did confess that frequent renters are "penalized" for the amount of movies they get.

Another reason to go to BB Online.

 

[navychop]

I'd think the dollar is due to the higher costs of Blu-ray discs.

 

[Kevinw]

I have no complaints with Netflix. I average 3 movies a week, some first runs others old tv series that I catch up on-SG Atlantis, etc. The 1 dollar additional is still cheaper than BB when I get 2 movies.

 

[meStevo]

I'd think the dollar is due to the higher costs of Blu-ray discs.

Ya this is what i thought too, they're paying a premium to offer these themselves, just passing that along. Did they ever state otherwise?

 

[allargon]

They're paying a premium, but they're charging extra for it. What is the issue is that the service is reduced compared to the availability of DVD's. Methinks Netflix sees a streaming future. However, they may be jumping the gun.

 

[Kevinw]

This is acomment from the artricle and to me this makes the most sense

JohnnyB
Wednesday, December 17, 2008, 02:48 PM
I sympathize with Swanni and other Netflix enthusiasts on this one. NetFlix is obviously his first choice. But it has disappointed him. But the Swasey guy from NetFlix was actually correct about his asset allocation priorities. The problem is not NetFix or its management. It's the high cost of Blu-Ray discs. It's high cost relegates it to a fringe, niche market position. Netflix is simply employing the infamous 80/20 rule. Meaning; keep 80% of my customers happy all of the time and 20% happy most of the time (or as much as I can). And I'll charge the 20% a $1.00 premium to offset defections and attrition from their side. Bottom line Swanni. If the industry wants Blu-Ray to be treated equal to SD-DVD or actually replace it. Then they should simply do it. Get rid of SD-DVD by equalizing all Blu-Ray costs with SD-DVD and moving SD out of the marketplace like it did with HD-DVD.

Swanni isn't a victim of poor NetFlix service. He is a victim of unrealistic expectations regarding distribution expenses on Blu-Ray. Those companies are not going to change unless there is a vast migration of SD-DVD consumers over to Blu-Ray. I suspect, Blockbuster will eventually irritate Swanni too

 

[gadgtfreek]

Yet BB didnt raise their fee, and In my area Im getting the same service from both, hmmmm. Another reason I keep service with both, its best if they have to compete with each other. Nflix around here reminds of how Dish is blindly defended sometimes (Ive had them since 2001!). Look, they throttle and they've admitted it (some still say they dont), and now we know they raised the price to help their bottom end, not help us with more availability. I dont feel they are any better or worse at this point than BB.

 

[Kevinw]

Yet BB didnt raise their fee, and In my area Im getting the same service from both, hmmmm. Another reason I keep service with both, its best if they have to compete with each other. Nflix around here reminds of how Dish is blindly defended sometimes (Ive had them since 2001!). Look, they throttle and they've admitted it (some still say they dont), and now we know they raised the price to help their bottom end, not help us with more availability. I dont feel they are any better or worse at this point than BB.

Because they are more expensive to start with.

Netflix
You are currently in the 2 at-a-time (Unlimited) plan with unlimited time to watch instantly.
# Your current period price is $14.99 (Including $1.00 for Blu-ray) (plus any applicable tax) .

Block Buster
* 2 at a time
* Unlimited DVDs through the mail
* 3 free in-store exchanges per calendar month*

$16.99 / mo. + tax

As for the throttle - Reminds me of those that go to an all you can eat buffett. No matter what you over eat. Save some for the rest of us:

 

[gadgtfreek]

You got me on the rpice increase, forgot about that. I guess my anger comes fromt he fact that Nflix hit a point that they were always at "long wait" for BR's and you could not get any. Of course they blamed it all on the studios.

As far as the buffet goes, its not my fault some people are slow eaters

 

[Kevinw]

As far as the buffet goes, its not my fault some people are slow eaters

ROFL

 

[gadgtfreek]

I take it back on the price, youre wrong.

I pay Nflix $14.99/mo for 2 at a time, I pay BB 13.99/mo for 2 at a time, hmmm.

Your price was for Total Access, which you cant compare to Nflix by mail only.

 

[Kevinw]

But isn't that the selling point- able to swap out at a store? I did not see the other plans at first. Oh well dollar more to watch streaming video..Well worth it for SD dvds

 

[yourbeliefs]

I never thought that Netflix was charging me an extra dollar to pay for more Blu Ray discs. I figured it was to help offset the increased cost of BD Discs.