Netflix CFO Barry McCarthy told analysts in New York that the demise of HD DVD would inspire studios to unleash a torrent of titles on Blu-ray. He estimated that the Blu-ray library at his company would jump from 500 today to 1,500 or more by year’s end.
Unfortunately, the cost of buying all those Blu-ray discs, which are more expensive than regular DVDs, may cause Netflix to raise prices.
“It seems apparent that content will cost us more,” said McCarthy, who was quoted in a VideoBusiness story. “Whether we raise prices will be entirely a function of churn, subscriber acquisition costs and gross margins.”
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