Netflix: Higher prices for high-def a possibility

[teamerickson]

Nooooooooooooooo!

Link

Netflix: Higher prices for high-def a possibility

CFO McCarthy says format war could drive up costs

By Danny King -- Video Business, 2/6/2008

FEB. 6 | Netflix hasn’t ruled out raising prices on high-definition rentals if a resolution to the format war between Sony’s Blu-ray Disc and the Toshiba-led HD DVD drives costs up, according to chief financial officer Barry McCarthy.

Blu-ray market share has risen since last month when Warner Bros. said it would release its high-def movies exclusively in Blu-ray starting this June.

“If a winner emerges and we experience some margin compression if a large number of subscribers rent in high-def, we’ll weight the options of increasing prices,” McCarthy said.

Speaking at the Thomas Weisel Partners Technology, Telecom & Internet Conference in San Francisco this morning, McCarthy said Internet downloading won’t threaten DVDs as the primary home-entertainment delivery method until prices drop and the content is accessible through multiple devices.

A widely adopted downloading device would “need to be real inexpensive and an open system,” said McCarthy, who referred to Amazon.com’s Unbox downloading service as a “closed” system.

Netflix has been fending off competition from Internet downloading systems such as Unbox, which Amazon.com started in September 2006, and Apple’s iTunes, which began offering movie download rentals last month. Netflix also saw subscriber growth flatten after chain-store leader Blockbuster started its online DVD ordering service Total Access in November 2006.

Netflix, whose fourth-quarter earnings beat analyst expectations on an increase in subscribers, said last month that it expects to start offering its Instant Watch streaming service to users with Mac computers this year. The service has so far been available only on PCs because of digital rights management restrictions.

“There are 100 million DVD players in U.S. households,” McCarthy said today. “If you really think people are going to stop renting DVDs, you need to lie down until that thought passes.”

 

[rad]

If it means a $1 or $2 increase just so I can get HDM from them I'm OK with it. I'm tired of seeing HD-DVD and BD movies sitting in my queue with LONG WAIT or VERY LONG WAIT, or in some cases like Blade Runner having them just cancel the request completly.

 

[Zookster]

If it means a $1 or $2 increase just so I can get HDM from them I'm OK with it. I'm tired of seeing HD-DVD and BD movies sitting in my queue with LONG WAIT or VERY LONG WAIT, or in some cases like Blade Runner having them just cancel the request completly.

+1

I'm actually cancelling Netflix next week and seeing if I have better luck with Blockbuster in getting new release BDs.

 

[sonic2000]

If it means a $1 or $2 increase just so I can get HDM from them I'm OK with it. I'm tired of seeing HD-DVD and BD movies sitting in my queue with LONG WAIT or VERY LONG WAIT, or in some cases like Blade Runner having them just cancel the request completly.

+1

I'm actually cancelling Netflix next week and seeing if I have better luck with Blockbuster in getting new release BDs.

Don't be in a hurry to cancel. I've have both and the situation is the same with long waits for everything in my queue. Yesterday Netflix started sending my Blu-Rays from Santa Clara, but my HD's are still showing long wait.

 

[Silvia2112]

I will also pay more if it guarantees me getting the movies in my queue. I have had 2 blu-rays sent in the past 6 weeks. I watch 3-4 movies a week. Not a very good percentage.

Blockbuster is just as bad. The difference is you can go to the store if one is near and get the blu-ray there.

 

[rad]

Don't be in a hurry to cancel. I've have both and the situation is the same with long waits for everything in my queue. Yesterday Netflix started sending my Blu-Rays from Santa Clara, but my HD's are still showing long wait.

I went three days with nothing being shipped, until I called to let them know I wasn't happy, all of a sudden they could free up a movie.

 

[teamerickson]

Throtled!

 

[rad]

Throtled!

Then they're doing that only for HDM since no problems getting SD DVD's.

 

[diogen]

If you really think people are going to stop renting DVDs, you need to lie down until that thought passes.

Priceless...

Diogen.

 

[Zookster]

Don't be in a hurry to cancel. I've have both and the situation is the same with long waits for everything in my queue. Yesterday Netflix started sending my Blu-Rays from Santa Clara, but my HD's are still showing long wait.

I've heard people on this forum say BB was better for getting their BDs, so I figure it won't hurt to put my Netflix account on hold for a month or two to see if the grass is greener. Not to mention the fact, last week when I checked out my closest BB, they had at least 6 BDs on the shelf that are "Very Long Waits" in my Netflix queue. Lately, my BDs from Netflix have been coming from all over the country, usually taking 3-4 days to arrive rather than just 1.

 

[teamerickson]

Then they're doing that only for HDM since no problems getting SD DVD's.

They do it on the high demand and low quanity products. It's all explained in their user rules.

 

[SatinKzo]

Hmm, what movies you guys renting from Netflix? Family currently has the following movies in queue in HD DVD or BD and only 1 shows any wait

Mr. Brooks
Good Luck Chuck
Evan Almighty (this is the only one showing a very long wait)
Old boy
Children of Men
Hairspray
Messengers
Man on Fire
I know who killed me
Ghost Rider
Mr Woodcock

Back on topic, I would only pay at most $2 more for my sub to get HD format movies and then only if they can gurantee I won't be waiting long for my movies.

 

[Zookster]

Hmm, what movies you guys renting from Netflix? Family currently has the following movies in queue in HD DVD or BD and only 1 shows any wait

Mr. Brooks
Good Luck Chuck
Evan Almighty (this is the only one showing a very long wait)
Old boy
Children of Men
Hairspray
Messengers
Man on Fire
I know who killed me
Ghost Rider
Mr Woodcock

Back on topic, I would only pay at most $2 more for my sub to get HD format movies and then only if they can gurantee I won't be waiting long for my movies.

Good Luck Chuck is a "Very Long Wait" for me; Evan Almighty isn't worth waiting for.

 

[SatinKzo]

Well, it is my family's queue also, so we try to stagger the movies. In between all those are kids dvds and other random ones for my wife and I that aren't in either HD format.

 

[capman]

This is my queue on netflix, all are available now

Superbad
UR Comedy Now Blu-ray

License to Wed
PG-13 Comedy Now Blu-ray

Resident Evil
R Horror Now Blu-ray

Trading Places
R Comedy Now Blu-ray

Entrapment
PG-13 Thrillers Now Blu-ray

Meet the Fockers
PG-13 Comedy Now HD DVD

The Chronicles of Riddick
NR Action & Adventure Now HD DVD

The Fast and the Furious
PG-13 Action & Adventure Now HD DVD


The Nutty Professor
PG-13 Comedy Now HD DVD

Ratatouille
G Children & Family Now Blu-ray

Underdog
PG Children & Family Now Blu-ray

The Simpsons Movie
PG-13 Comedy Now Blu-ray

I am only doing 2 out a month for $4.99. 1 out at a time. Think that has anything to do with it?

 

[Zookster]

I am only doing 2 out a month for $4.99. 1 out at a time. Think that has anything to do with it?

What I'm starting to realize through these forums is that I think it has more to do with the region you are in. My Superbad and Ratatouille both say "Long Wait' and Simpsons "Short Wait" (though it's been Long to Very Long since it came out until today). If you can't tell from my avatar, I live in San Diego and lately when I get any BD title, it comes from another part of the country. I'm on the 13.99 plan and only watch 5-6/month.

What region are you in, capman?

 

[capman]

Central coast area in CA. About 1 HR from Santa Barbara.

 

[sammy4041]

Hmm, what movies you guys renting from Netflix? Family currently has the following movies in queue in HD DVD or BD and only 1 shows any wait

Mr. Brooks
Good Luck Chuck
Evan Almighty (this is the only one showing a very long wait)
Old boy
Children of Men
Hairspray
Messengers
Man on Fire
I know who killed me
Ghost Rider
Mr Woodcock

Back on topic, I would only pay at most $2 more for my sub to get HD format movies and then only if they can gurantee I won't be waiting long for my movies.

I have had good luck chuck in my que before it was even released and the status has never changed from very long wait.