Netflix To Charge More For Blu-ray

Yesterday Netflix said it plans to impose a "modest" fee increase to rent Blu-ray discs. The rates would increase later this year which will be used to help offset rising costs as it expands its library to include more movies on the Blu-ray format.
A lot of people are complaining about this, but it makes financial sense. The wholesale cost of Blu-ray Disc is about 27% higher than standard DVD, probably more than that when you consider the massive amount of DVDs Netflix must purchase directly from the studios at a discount. Whether you rent in a store or (legally) download them, HD movies cost more to buy or rent, generally at a 25% premium over standard def. It's simply a matter of fact that customers who want to watch HD media finance any company's expansion into that format.

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