With the fall of HD-DVD, the Hi-Def rental-lover has raised question on Netflix ability to sustain its glowing subscribers and demands for Blu-Ray Format. Their rival, Blockbuster has quietly surrendered on price war and raised a significant monthly fee, almost twice as much on the least profitable Total Access renters. The sudden price rise has terminated thousands of subscribers, many switched or simply returned to Netflix.
In an interview with Video Business, NetFlix CFO Barry McCarthy revealed company plan to quadruple its Blu-ray selection from 400 to 1,500 titles but hinted the possibility of raising fees on monthly subscribers.
“It seems apparent that content will cost us more,” McCarthy said. “Whether we raise prices will be entirely a function of churn, subscriber acquisition costs and gross margins.”
Nothing for free, one good excuse to put the lost of Format War on subscribers.