Andre Yoskowitz
22 Apr 2008 18:13
Claiming increasing retail and wholesale price, Netflix has officially announced that it will be adding a "modest monthly premium" for access to the rental company's Blu-ray catalog.
Confirming what was implied by Netflix's first quarter earning calls, President and CEO Reed Hastings made the announcement official.
"Purchasing Blu-ray DVDs costs more both at retail and wholesale than standard definition DVDs, and consumers are used to paying more for high-definition content in every other channel, including video rental stores, video-on-demand, and cable channels," Hastings added. "Because of the higher cost of Blu-ray and the consumer expectations around high-def content, we are planning on implementing a modest monthly premium for access to Blu-ray some time this year."
Hastings did not however, give a timeline for when the company would implement its latest strategy or the amount for this added premium.