Netflix Raises Blu-ray Rental Fee

04/28/08

We're often asked whether it's possible to rent Blu-ray movies, or whether consumers have to spend upwards of $30-40 on each movie. Yes, you can rent Blu-ray movies. But it will soon cost you a bit more to do so, if you use Netflix.

Netflix CEO Reed Hastings last week announced that Netflix will begin charging a premium later this year to people who rent Blu-ray movies. Although Hastings did not specify how much the increase would be, he divulged that it would be "modest."

Hastings attributed the Blu-ray rental premium to the higher wholesale prices on Blu-ray compared to DVD. He also said the price increase shouldn't affect many Netflix customers, as the company anticipates its Blu-ray subscribers will remain in the single digits percentage-wise.

Netflix's decision to raise its Blu-ray rental prices comes in light of the company reporting a record-setting Q1 in terms of subscriber growth. For the quarter ended March 31, Netflix earnings increased 36 percent, with revenue up 7 percent.

One possible factor for this growth was Blockbuster's decision to raise its rental prices in late 2007.

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