Netflix having an issue with HD Blu-Ray disc supply

December 20, 2008 by  

emptymailNetflix added Blu-ray to its option list just a year or so ago, and subscribers were pretty excited to be able to grab HD discs for the same price as their traditional DVDs. Then they added $1 to prices of people who rented Blu-Ray discs. Not great news, but if the service was good, it was worth it.

Now there are rumors and reports of a pretty bad backlog problem with Netflix regarding Blu-Ray disc rentals. now reports that Netflix is not only aware of the backlog problem, but they are just fine with it and have no plans to change things or do anything about it.

Steve Swasey, Netflix’s spokesman, stated straight out that the company simply doesn’t have enough Blu-ray discs to distribute. When asked why Netflix doesn’t buy more Blu-ray copies — perhaps with the $1 a month fee they are charging its 500,000 Blu-ray subscribers — Swasey said the company believes that wouldn’t be “efficient.” We all know what that means: we want to keep more money.

“There is an expense to that,” Swasey told the site. “These things cost money. We deploy money where we think it’s going to be most efficient to keep subscribers and investors happy. It’s always check and balances.”

Swasey added that the studios have been slow to release enough Blu-ray discs for rental services such as Blockbuster and Netflix. But the Netflix spokesman said his company isn’t necessarily interested in buying them when they are available because of the cost. They do cost more, but then, that’s why they’re charging that $1 extra per BR subscriber. Right?

Swasey also confessed that frequent renters are penalized for watching so many films in a short timeframe, which they’ve never confirmed was the case.

Their competitor, Blockbuster Online, is looking better and better.


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