Netflix says if you don't like the new rate, don't rent Blu-ray
For many years, renting a movie meant driving to your local video store looking for the film you want to watch. Today we have several alternatives to driving to the movie store including streaming rentals and mail order rentals via Netflix and similar companies.
Netflix was the first mail order video rental service and put such a pinch in the backside of Blockbuster that it ended up offering a similar competing service. Netflix rents both DVD and Blu-ray movies, and before the demise of HD DVD it rented the ill-fated HD DVD format as well.
This week, Netflix announced that it will be modifying the price of its Blu-ray rental option for customers currently on the service and new customer signups. Netflix will be raising the price of the Blu-ray add-on by different amounts depending on how many movies the plan allows each month.
Customers on the one DVD out at a time, two DVD per month plan will pay an additional $1 per month for Blu-ray access making the monthly plan cost $5.99. That doesn’t seem that bad at first glance. However, each tier up in the amount of DVDs you can have out at a time, the new Blu-ray fee grows by $1. That means as you get to the high-end eight DVDs at a time plan for $47.99, the new Blu-ray additional monthly charge is $9 for a new total of $56.99.
Netflix doesn't seem too bothered by the significant price increase on some of the plans and simply tells customers who don’t like the new fees to cancel the Blu-ray add-on. Netflix VP of Marketing Jessie Becker justifies the price increase by saying that Blu-ray discs cost more to purchase, often as much as 30% more.
To provide a better Blu-ray experience Becker says that a price increase is required. What Becker fails to mention is what exactly the extra loot Netflix will be gleaning from its customers will be used for. Many Netflix users that currently use the Blu-ray add-on complain that they are unable to get most of the films they want on Blu-ray because of demand for the titles. That means many users don’t get to watch many Blu-ray films that they already pay for.
One user who posted a comment on the Netflix blog going by the name Chris wrote, "I have no problems paying a little extra for Blu-ray discs assuming you actually send them at the same rate as standard DVDs. I've waited weeks for new releases to ship on Blu-ray, often having to "downgrade" to DVD in order to actually get the title to ship. Use the extra money to stock Blu-ray in higher volume or I will seriously consider canceling my account."
Another ShapeGSX wrote, "I guess I'll be dropping from the 3 DVD plan to the 2 DVD plan. I'm not certain that I feel that the level of service I have been receiving for my Blu-Ray enabled account is worth $4 a month. I mean, if you happen to have a month where you receive nothing but DVDs (by your choice or by Netflix's own choice), you basically end up paying an extra 20% for nothing. That hardly seems fair to me."
Netflix has previously stated that it has 10 million subscribers, and it has seemingly hit a nerve with some of its customers with this new charge.
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