Is this the picture of a high-def owner, according to NetFlix?
Posted on 04/22/2008 3:56:40 PM PDT by Las Vegas Dave
NetFlix yesterday said it would soon raise monthly subscription fees for Blu-ray high-def disc rentals.
And the online DVD rental service couldn't have been clearer as to why it will hike those prices.
High-def owners are accustomed to being charged more than the average consumer, the company said.
"Consumers are used to paying more for High-Definition content in every other channel, including video rental stores, video-on-demand, and cable channels," explained Netflix CEO Reed Hastings.
In other words, Hastings is saying that it's okay to gouge the high-def owner a bit because he/she is used to being gouged a bit.
The executive was referring to the fact that HD VOD movies usually cost $1 more than standard-def VOD films; that most cable and satellite operators charge an extra monthly fee for HD programming packages; and that the HDTV itself cost far more than a non-HD Digital TV.
While Hastings is unusually honest about his feelings on the subject, he is not alone. In March 2006, Peter Chernin, president of News Corp., which owns Fox Studios, told a financial conference that his company was talking to cable and satellite operators about charging $25-30 to watch a movie in HDTV 60 days after its theatrical release.
Asked if the $25-30 cost seemed unfairly high, The Hollywood Reporter quoted Chernin as saying that some high-def owners would be "desperate consumers" because there is relatively little HDTV programming available on cable and satellite.
To date, News Corp. has not followed up on Chernin's plan. But Hastings' remarks indicate that the industry's belief that it can take the high-def owner for a ride has not changed.
However, one thing can change.
If you're a NetFlix subscriber, you can decide to change your DVD rental service.
In fact, Blockbuster recently announced that it would increase the number of stores carrying Blu-ray rentals to about 5,000. When NetFlix reveals its new Blu-ray subscription price, I suggest that you check out your local Blockbuster -- and Blockbuster's online service.
And, if Blockbuster offers a better deal, take it.
That will show NetFlix that you won't just "take it."
The pinged subjects will be those of HDTV technology, satellite/cable HD, OTA (over the air with various roof top and indoor antennas) HD reception. Broadcast specials, Blu-ray/HD-DVD, and any and all subjects relating to HD.
Las Vegas Dave
Their revenue has gone down, rather than looking at their product and realizing that most of their movies hold no interest to the majority of people, they have tried do come up with a way to make more money with a generally lousy product.
We have seen it in the theaters, they are taking more and more money from the theaters leading to $5 cokes and candy.
Now they desperately want us to buy $500 players and spend $30 per disc on lousy movies. They forced Blu-Ray/HD DVD war outcome giving us the more expensive alternative.
Well they have had the opposite effect on me. I no longer buy day and date movies. I may rent a movie if it sounds good and then wait and buy used.
If a movie is HD worthy, I wait until it is on TV, record it with my computer and watch it on my media player.
Well their business model has an upside, my movie budget has gone way down leaving more money in my pocket.
In my opinion, the escalated price for renting the BR's is BS.........DVDs on my Pioneer plasma are just fine and so I'm not about to go into overkill for the sake of BR.
Additionally, I'm now in the habit of getting my DVDs from my local library. Granted, what I pick up are older but at least they are free..........
Red Box is great, too....$1 per movie....for a 24 hour rental
There are fewer blu-ray titles and fewer blu-ray customers than the general public. It presents an investment in non-compatible discs.
Where is the start up company that only offers blu-ray discs and what is there monthly service fee?
There is a product that uses super resolution techniques to increase real resolution. It’s not real time but it does add real resolution to the video.
Toshiba is supposed to have a DVD player coming out sometime around the end of the year with a cell based processor that does super resolution in real time. I wouldn’t expect Blu-Ray quality but it shoud turn regular DVD into real 720p.
That’s what happens when you eliminate the competition (HD-DVD). With only 1 alternative, prices were bound to go up. No surprise here.
What business owner doesn’t charge every penny they can for a product?
Sorry, Netflix. I LOVE your service, but my upconverting DVD player does a decent job on making regular DVD’s look good on my LCD, so I don’t care about Blu Ray.
This is too bad.
Netflix actually lowered my monthly bill a few months ago.
Never seen that before.
I dropped them long ago for “throttling”.
I went over to Blockbuster Online, and was able to rent them there. Indeed, I have rented several HD DVD titles since switching. This new Blu-Ray plan of Netflix' does not look promising either. I'm glad I am rid of them.
“What business owner doesn’t charge every penny they can for a product?”
A business owner interested in growth and long-term health rather than short term profit. I think the American automobile industry would be a good example.
Humph, I did not know that.
Netfkix is beginning to appear to care about "customers".
I called them the other day to give them a throttling about "throttling" ( delaying deliveries sometimes by 3 days for me).
They, of course lied & said they didn't or it was someone elses fault (gee, who could that be?).
But, now my DVD's are arriving at jet speed.
BR discs cost them more to buy, it’s not gouging to send the costs to the customer.
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