Netflix Ups Fees For Blu-ray Amid Rising Demand

By: Associated Press
By: Associated Press

SAN FRANCISCO (AP) -- Netflix Inc. is raising its prices for rentals of Blu-ray discs. The change will triple or quadruple the high-definition surcharge on Netflix's most popular subscription plans.

The new rates announced Monday are being driven by the growing appetite for discs in the high-definition format. Blu-ray discs cost about 30 percent more than standard DVDs, so Netflix's profit margins are being squeezed as it expands its Blu-ray inventory.

Netflix had been imposing a $1 monthly surcharge for Blu-ray rentals since September, regardless of how much the basic subscription plan costs.

Effective April 27, Netflix will adopt a sliding scale that will slap higher Blu-ray fees on plans that let customers check out multiple DVDs at a time.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


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