Home Video Asylum

TVs, VCRs, DVD players, Home Theater systems and more.

It's not surprising

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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  Kimber Kable  


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