We had wondered how Netflix (NFLX) would handle the fact that hi-def Blu-ray discs — which will increasingly make up a bigger percentage of its library — cost more to buy than standard-def DVDs. Now we know: The company will charge a “modest monthly premium” for access to Blu-ray discs sometime later this year, CEO Reed Hastings said this evening during the company’s Q1 earnings call.
No further details, but we’re guessing Netflix will charge $1-2 per month for subscribers to gain access to hi-def movies. Which makes sense, especially compared to the company’s other options: Raising prices across the board, which would slow growth and piss off customers without hi-def players. Or settling for lower profit margins, which would piss off Wall Street.
See Also: Netflix Q1: Tanking On Guidance
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