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Just got a notice that Netflix is increasing their "Blu-ray Access" surcharge from $1 a month to $6 a month. That's a huge jump, and very disappointing. Since the Blu-ray library doesn't have a whole bunch of stuff I'm particularly interested in, my rentals have been maybe one Blu-ray disc a month at most. A 600% increase in monthly charges is ridiculous. I've removed Blu-ray access and downgraded my Netflix account.
Hopefully others will do the same. $6/month additional for the "privilege" of renting Blu-ray discs seems like a rip-off.
Follow Ups:
But this is TOO MUCH.
I'm glad I haven't made the blu-ray leap yet. At those prices I'm not likely to.
They must not want people to sign-up for blu-ray until they can a) build up their inventory, and b) disc prices go down.
Blu-ray and me have a date....in about five years time.
The note I got said, that, since Blu-ray discs cost more, they have to charge more. My impression is that the costs of todays' Blu-ray discs really aren't that much more than standard DVDs did just a few years ago. Some standard DVDs have always cost a lot more (e.g., the Criterion Collection), but they never charged more for renting those to what I expect is a smaller demand; oops, maybe I shouldn't give them ideas. What price Netflix pays for Blu-ray discs is another question, but it must be a lot less than you or I would pay. Or course, I have no idea of their complete business model and how much the cost of discs plays into their profits. Most Blu-ray discs that they are buying are relatively popular titles and should attract rentals. Having all Blu-ray titles available could be attractive for people considering buying a player who would then join Netflix if the price is right.
So my question: is the cost of the discs likely to be a cost-driver for them or an excuse for raising charges for people they expect will likely be willing to pay? Probably we can only guess.
Joe
Vote with your feet on this one. I am canceling my Netflix membership over this. Screw them. They never have what I want on Bluray anyway.
I simply canceled my Netflix account. A dollar or two a month is one thing but the percentage that the BD was raised is not justified.
The comments section on Netflix' website already has over 400 angry entries, even though the announcement was made just a few hours ago. Looks like most of the posters are taking the same approach I am - deleting Blu-ray "access" and downgrading (or cancelling) their accounts.
When Netflix originally added the $1 Blu-ray "access" charge last year, their position was that consumers who watch HD content are used to paying more. I'm sure that was one of the internal justifications they used to jack the price just a short time later. I hope it backfires on them in a big way.
nt
I just got the same email. However, my surcharge is going up to $3/mo since I rent 2 DVDs at a time.
...based on the number of discs your plan allows you to rent (as opposed to how many Blu-rays you actually rent).
1 DVD out at-a-time (2 DVDs a month)
Monthly plan cost: $4.99
Additional monthly charge for Blu-ray access on this plan: $1
Monthly plan cost with Blu-ray access: $5.99
1 DVD out at-a-time (Unlimited)
Monthly plan cost: $8.99
Additional monthly charge for Blu-ray access on this plan: $2
Monthly plan cost with Blu-ray access: $10.99
2 DVDs out at-a-time (Unlimited)
Monthly plan cost: $13.99
Additional monthly charge for Blu-ray access on this plan: $3
Monthly plan cost with Blu-ray access: $16.99
3 DVDs out at-a-time (Unlimited)
Monthly plan cost: $16.99
Additional monthly charge for Blu-ray access on this plan: $4
Monthly plan cost with Blu-ray access: $20.99
4 DVDs out at-a-time (Unlimited)
Monthly plan cost: $23.99
Additional monthly charge for Blu-ray access on this plan: $5
Monthly plan cost with Blu-ray access: $28.99
5 DVDs out at-a-time (Unlimited)
Monthly plan cost: $29.99
Additional monthly charge for Blu-ray access on this plan: $6
Monthly plan cost with Blu-ray access: $35.99
6 DVDs out at-a-time (Unlimited)
Monthly plan cost: $35.99
Additional monthly charge for Blu-ray access on this plan: $7
Monthly plan cost with Blu-ray access: $42.99
7 DVDs out at-a-time (Unlimited)
Monthly plan cost: $41.99
Additional monthly charge for Blu-ray access on this plan: $8
Monthly plan cost with Blu-ray access: $49.99
8 DVDs out at-a-time (Unlimited)
Monthly plan cost: $47.99
Additional monthly charge for Blu-ray access on this plan: $9
Monthly plan cost with Blu-ray access: $56.99
If you don’t want to pay the additional charge for monthly access to Blu-ray, simply remove Blu-ray access on your account before April 27, 2009.
..
I guess it's OK if you rent one disc a month, and don't mind waiting days/weeks for the Blu-ray version to ship to you. I guess it's reasonable if you ignore the fact that Netflix' major competitor doesn't have a Blu-ray "surcharge."
I guess it seems reasonable to people who don't mind being asked to pay more for no extra value whatsoever. If that's you, I'm happy for you. Netflix needs customers with that mindset right now.
Getting upset over Netflix is a waste of energy. You might need to get out more... Who rents 5 DVDs a month?
Edits: 04/08/09 04/08/09
...you obviously have nothing remotely useful or intelligent to say.
Off with you.
That wasn't a response, just a recommendation on improving your life. Go for a walk, donate your time, walk your dog, etc. No need to whine on an audio board about Netflix.
If at some point I decide I want to downgrade my lifestyle to your level, I'll be sure to contact you.
But what are the alternatives? I.e., is there anybody else in the Internet (or even local [Ballbuster?]) that has a better rate for blu-ray rentals?
I am buying and building a small blu-ray library of my most favorite films, but I'm sure there are some movies at the periphery of my interest that don't warrant purchase, but I would want to view on blu-ray. Maybe the answer is just stick to DVD for this latter category?
...seems like they may be getting their act together. Their online prices are now lower than Netflix for the tier I'm in, and no Blu-ray surcharge. Perhaps it's time to re-evaluate Blockbuster.
updated 8:12 p.m. ET, Mon., April. 6, 2009NEW YORK - Movie rental company Blockbuster Inc. said Monday the risk that it may not complete financing deals raises “substantial doubt” about its ability to continue as a going concern.
Dallas-based Blockbuster, which has struggled amid the rising popularity of DVD-by-mail services like Netflix, disclosed the warning in a filing with the Securities and Exchange Commission. The company had already cautioned last month that its auditor was likely to raise doubts about its ability to stay in business.
A going-concern qualification refers to an auditor’s assessment of a company’s ability to continue to operate for the foreseeable future.
Last week, Blockbuster said its revolving and term loan agreement was amended, giving it a $250 million revolving loan refinancing that matures on Sept. 30, 2010. Lenders including JPMorgan also agreed to waive any default that could result if auditors attached a “going concern” classification.
But on Monday, the company said its lenders’ obligation to fund the $250 million credit facility is subject to meeting certain conditions, and there can be no assurances that these conditions will be met.
Even if the loan is funded, the company said it “may not have sufficient liquidity to finance the ongoing obligations of our business, which raises substantial doubt about our ability to continue as a going concern.”
Blockbuster said it believes that it will be in a position to close the amended credit facility by around May 11, though “there can be no assurance regarding these matters.”
Shares fell 3 cents to 85 cents in after-hours trading, having closed earlier at 88 cents.
Edits: 04/07/09
I dropped Netflix too, as much as I hate Blockbuster I have one down the street so it was more about price than convenience.
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