Netflix’s plan to raise the price of its Blu-ray rentals is simply a reminder that Blu-ray disc prices are still too high.

Yes, Blu-ray prices have been steadily falling in stores, with an average price of $26 a disc so far this year, according to Adams Media Research. But that doesn’t tell the whole story.  Those price drops, from $28.37 in 2006, are due to retailers lowering their prices and squeezing their profit margins. The studios continue to charge retailers the same per release — $21 to $24 each for titles with an MSRP of $35 to $40, according to Video Business. That inflated dealer price, which hasn’t changed since 2006, is the driving force behind Netflix’s move.

I don’t buy the argument that the MSRP doesn’t matter if retailers are continually discounting Blu-ray releases. Those sales are still based on inflated MSRPs. Bop over to Amazon and check out its sale prices for Slumdog Millionaire.  The DVD goes for $17, while the Blu-ray goes for $26. Are a few extras and a high-def picture worth $9 more?

The picture for Blu-ray prices will get better. Adams Media Research estimates that the average price per Blu-ray disc will drop to $18.55 by 2013. That’s still higher than today’s DVD prices, but it’s an improvement. Will anyone care by then?

This entry was posted on Monday, March 30th, 2009 at 1:09 pm and is filed under DVDs. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.