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Old 08-07-2008   #13
Orlando
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Join Date: Jun 2007
Location: Baldwin NY
Posts: 6
Default Re: Netflix to Increase Cost of Blu-ray Rentals

Quote:
Originally Posted by faberryman View Post
I'm not convinced the sky is falling. The surcharge reflects an additional cost incurred by Netflix - the cost of maintaining a dual inventory of DVD and Blu-ray copies of the same movie.

Nor am I. But you mention this as if you know for sure why the surcharge. I read a quote somewhere (I wish I could remember where) from the CEO who basically said “They are used to paying a premium so it should be no big deal.”

It also sounds really fishy that now that there is a winner in the format war there is a surcharge as people come on board. If it is that hard or cost ineffective then why get into a niche market in the first place? And if the inventory issue was such an extra expense why was it not a problem when they had to do DVD, Blu-ray and HD-DVD?
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