Your Daily Phil

Netflix makes Blu-Ray a premium option, teases Xbox 360 integration again

Posted by lozenp on April 22, 2008

Netflix CEO Reed Hastings said during the company’s first-quarter earnings call yesterday that Netflix would begin charging more for subscribers renting Blu-Ray discs, saying that “consumers are used to paying more for high-definition.”

Netflix helped facilitate the end of the format war when it announced in February that it would stop offering HD DVDs through it’s mail-rental service. This move, while not surprising, is disappointing in that it puts up further barriers for people looking to cross into the HD realm. I’d be willing to bet that the number of people renting Blu-Ray is still pretty small, lowering Netflix’s ROI on buying all the discs.

No details were announced, so Netflix members were left to wonder how (will it be a flat, $2 service charge or tiered, like the subscription plans), how much and when (by the end of the year seems to be likely).

Also on the call, Reed again talked about the partnership Netflix has with LG to create a settop box for watching any of the company’s 9000 available instant watch features. Netflix also wants their client software integrated into internet-connected Blu-Ray players, game consoles, TVs and stand-alone STBs.

He also went on to say that they were working with three other companies, three of which are “major companies which each sell millions of devices per year, likely in Q4.” The smaller company (Slingbox maybe) is expected to hit before fourth quarter. This should start the “Netflix on the Xbox” rumors going again.

Advertisements

One Response to “Netflix makes Blu-Ray a premium option, teases Xbox 360 integration again”

  1. […] Netflix makes Blu-Ray a premium option, teases Xbox 360 integration again […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: