During a conference call, Netflix President and CEO Reed Hastings announced the following:
“Purchasing Blu-ray DVDs costs more both at retail and wholesale than standard definition DVDs, and consumers are used to paying more for high-definition content in every other channel, including video rental stores, video-on-demand, and cable channels. Because of the higher cost of Blu-ray and the consumer expectations around high-def content, we are planning on implementing a modest monthly premium for access to Blu-ray some time this year.”
You hear that? That’s the sound of people cancelling their Netflix accounts.
