Netflix raises Blu-ray surcharge by 300% to $4 per month

Although it's been over a year since Blu-ray won the format war against HD DVD and almost all new movies are simultaneously released in the high-definition format, prices have not fallen, with Blu-ray discs still costing up to 3 times more than DVDs. In turn, Netflix has begun informing subscribers that it is raising the cost of those who receive movies on Blu-ray from $1 to $4 per month.

Netflix is attributing the 400% fee increase to the cost of the company having to stock more films in Blu-ray. "As we buy more, you are able to choose from a rapidly expanding selection of Blu-ray titles. And as you've probably heard, Blu-ray discs are substantially more expensive than standard definition DVDs," the company said in an e-mail to subscribers.

The $4 fee applies to Netflix's standard "3 DVDs at-a-time" plan, which costs $16.99 per month and will now total $20.99 with Blu-ray. The fee goes up or down by $1 with each DVD added or removed from the plan. The price increase will begin on April 27, giving members one month to remove the Blu-ray option from their accounts if they wish to avoid the added cost.