After heavily advertising its instantly-viewable, streaming movie availability last holiday season, in in addition to Netflix-ready Blu-Ray players or devices, Netflix has raised Blu-Ray movie rates from its .99 cent flat rate surcharge to up to 10 times that monthly fee.
Only months ago, monthly surcharge for Blu-Ray movie titles had been a flat rate of less than one dollar per month, regardless of Netflix account type. By Spring’s end, only months after such heavy promotion of Netflix-ready Blu-Ray players and Blu-Ray streaming capability, Netflix suddenly changed that flat rate to a variable rate. The Blu-Ray surcharge per month can be huge and, at best, substantial for most accounts. Neftlix seemingly gained or increased its customers base through specifically touting its Blu-Ray movie availability, then just months later used that Blu-Ray same availability as reason for its supposedly needed substantial fee increase.
The pricing increase is substantial, over four times the flat rate for a common 3-DVD at a time option. Netflix stated to customers via email “Our Blu-ray selection has grown more than 60% in just 6 months to over 1,300 titles, and is continuing to expand quickly. Blu-ray adoption among our members has also grown – it’s now close to 10%... Blu-ray discs are substantially more expensive than standard definition DVDs – often as much as 30% more.” First, Netflix itself chose to grow its own Blu-ray selection, and apparently used that Blu-Ray availability in reaching new customers. After gaining interested customers in the Blu-Ray option Netflix made available, the company continued purchase of new movie titles of that type. This was a choice, to accrue Blu-ray movie title, that Netflix made.
Customers had no option in that decision to continue large purchase of Blu-ray movies, yet the company claims that accruing to be the reason it “needs” to raise prices. For the median 3-DVD (at a time) monthly Netflix plan, this Blu-Ray increase amounts to a $4 surcharge per month versus the .99 cent previous flat fee it advertised only months before. For the highest Netflix plan, the new Blu-Ray surcharge is up to an additional $10 surcharge per month. The substantial pricing increase has taken during severe economic downturn, and the initial Blu-Ray flat fee of .99 was never advertised or even alluded to as an introductory promotion. Netflix released the email regarding Blu-Ray price increase March 30, not even one month prior to instituting its Blu-Ray pricing change as early as April 27 for accounts.