Netflix: Higher prices for high-def a possibility

[ElektronikSupersonik]

These fears are NOT unfounded.

Amazon has ALREADY raised the prices on some 19.99 catalog BD's by about a buck.

This is a fact.

Amazon had the hd-dvd drive for $79.99, and now it's $155

http://www.amazon.com/exec/obidos/AS...-20//ref=nosim

OH MY GOD HD-DVD HARDWARE GOING UP IN PRICE!!!111

[kowhite]

Why do blu-ray or HD DVD movies cost more than DVDs, if not for manufacturing costs? If you are talking "price" and not cost, then why should the studios charge Netflix more than DVDs for their movies? Don't they want BD to succeed? After all, BD movies have much better DRM. There are millions out there ripping and burning DVDs from Netflix.

See my answer above.

I understand that - but again, why don't the studios/BDA lower the price to Netflix as volumes increase? raising rental prices for HDM rental by the largest (and most viable) rental chain will send a chilling message to the masses.

God, I see a question like this and I think no WONDER you people are so off base.

Why does HDM cost more than DVD? Are you goddamn kidding me? Is it because of manufacturing costs? Are you being serious? Why am I so shocked? Because I thought this was basic, hi-def 101. HDM costs more because the movie studios are positioning this for the time being as a higher margin product. It's THAT simple. It's not because of more manufacturing costs, it's not because studios are stupid, it's because that's how they want to position a new product with added value.

I'm just...how can you be that naive? How can you possibly understand the format war, hell the home video industry...if you think this industry is in a race to undervalue their product, slash margins, and commoditize as quickly as possible? That you think this is at ALL what anyone wants to do with this industry (and that you think it's even needed to be done) is probably why we get boneheaded threads like this. You just don't understand this business mikemorel.

[Urza]

Amazon had the hd-dvd drive for $79.99, and now it's $155

http://www.amazon.com/exec/obidos/AS...-20//ref=nosim

OH MY GOD HD-DVD HARDWARE GOING UP IN PRICE!!!111

I'm not sure how being a smart ass helps the conversation.

I feel I have a legit concern.

People are now starting to complain about buy.com raising BD prices on bluray.com

Please dont turn this into a format pissing contest, I just want to know why this is happening.

[endymion]

There are no guarantees that the strategy you describe will work, as I've alluded to above. And I view studios as being desperate for mass adoption ASAP, due to massive pirating of DVD and other consumer choices that just weren't around back in 1998. They want the chance to sell their catalogs again on optical, then again on download 5 years from now.

You will note that DVD sales are now starting to drop. As DVD sales drop, if there are not enough HD sales to compensate, it will adversely affect studio bottom lines.

Massive pirating of DVD, as well as declining DVD sales, as mentioned above.

I think they care more than you think they do, because the mess they made may have ruined their chances to sell their catalogs one last time.

You bring up a very good point, and I agree that I overlooked this. However in the end of the day, they will weigh the options with cold hard dollars. Yes I am very sure they want some winner. But when they put their numbers in their little calculators, they will only "push" HD as much as profit dictates. DVD still sells a lot make no mistake. The piracy has been a problem for years but DVD still manages to sell a lot of discs every year. The next gen format will have piracy issues too. They want a winner, sure, but once again, it's like me saying I want a six-pack. Wanting is one thing, but sacrificing for it is another.

The studios are not sacrificing anything to support HD. They are putting out the bare minimum of titles and are fine with their higher prices, because they know the small market of HD lovers (us) will support the prices. Seriously, if the studios really cared, you would see real investment in factories, more aggressive pricing to stimulate demand, and a release schedule that didn't leave all of us disappointed. Whether you are HD-DVD or Blu-ray, you would be lying if you said you were 100% satisfied with the release schedule from any of the studios.

[mikemorel]

It certainly is not.

I am strictly speaking from a financial point of view. Whether or not you like Blockbuster more or less is immaterial to the conversation.

Worst Stock for 2008: Blockbuster

Netflix is struggling to survive against them.

Hardly.

Netflix income up 36% for 2007

[LtLalue]

this is a moronic wannabe argument for HDDVD, here's why.

In Canadian Blockbuster's...we only had beta stores (a very select few that carried both HDDVD's and Blu Ray Discs)....as they expanded HD movie selection to ALL Blockbuster's...the price for renting ANY HD movie increased from the same price of a SDDVD rental to about 1.50 something more...
it has nothing to do with one format winning...it's about purchasing even more HD movies for a larger HD rental market, and jacking up costs to now cover the new investment into buying MORE HD titles...

before all BlockBuster's got HD movies... there title selection at the Beta stores were still kind of slim... so i can understand why it was possible for them to rent HDDVD's/Blu Rays for the same price as DVD since they want to raise awareness of it.

go ahead...say blockbuster doesn't matter but netflix does...take off the damn HDDVD bias and look at things objectively...
HDDVD = the cheaper solution...has the more expensive discs that did a quarter of the BOGO sales and 19.99 sales Blu ray Had done in 2007...that's just greed.

[Hobbes]

I am strictly speaking from a financial point of view. Whether or not you like Blockbuster more or less is immaterial to the conversation.

I'm in some form of agreement with you on this.

Blockbuster is a mess. They've been falling apart for a while (their decision to not back the developing DVD format basically caused the boom in retail pricing and the deterioration of their rental business. It's one of the worst business moves ever and a great story. I don't have a link but it's worth reading.)

Netflix has really turned it on and they appear to be nimble enough to go with whatever comes next. I think potential price increases might be inevitable from them since they have had to keep their prices artificially low while they compete with Blockbuster and Wal-Mart's online rental plans. Wal-Mart's plan folded and Netflix has Blockbuster reeling so they may now be able to price a little higher and get away with it.

[whitefangv]

Well if they are gonna increase prices they'd better frickin bulk up their stock. Because there are some titles I"ve been waiting over a year to rent. Thats right one year. I had Planet Earth, The Matrix and Elizabeth all on very long wait since they came out.

[ElektronikSupersonik]

Please dont turn this into a format pissing contest, I just want to know why this is happening.

Ok I won't, as long as you do a better job of posting "facts."

[Urza]

Ok I won't, as long as you do a better job of posting "facts."

You have not told me what fact is wrong. Amazon did indeed raise some prices on BD products esp catalog prices. Also buy.com and Frys raising of BD prices has been comfirmed.

So do you mean facts like that?

So once a gain, stop the "Your attacking my beloved blue" mentality. I am simply asking questions, wondering why the prices are being raised at some vendors, including possibly netflix as the op referes to.