Last week Netflix sent out an email telling subscribers that the monthly fee will increase by $1.00 if they subscribe to Blu-ray discs. With times being what they are, I do not fault the company for increasing prices. I am just not sure about the logic of the particulars.
Why not raise it by $1.00 for everyone? Would that have been too dangerous to the brand? Instead, it penalized early (and at this point, not-so-early) adopters who want high definition films. Does it make sense to use a strategy that may be detrimental to mainstream movement from one standard format to a new standard? Shouldn’t it be fostering the migration from DVD to Blu-ray?
One could argue, by doing it this way, Netflix is gradually preparing its users for increased prices. From that light, the strategy seems to make sense. But, to video enthusiasts with 50+ inch displays it seems like a penalty.
Could Netflix have used a different strategy when increasing prices?KO