Netflix had a great quarter -- profit jumped 30 percent, exceeding Wall Street estimates -- but economic troubles are brewing. It's not the best time to sell consumers anything that isn't cheap food, toilet paper or gas.
Netflix' solution? Make more money from Blu-ray subscribers.
"A small contributor to earnings in the fourth-quarter will be our $1 per month surcharge for those subscribers who have elected to enable access to the more expensive Blu-ray high-definition content," said CEO Reed Hastings, speaking on Monday's earnings call.
Hastings also expects to end the fourth quarter with 500,000 Blu-ray subscribers, and predicts the number "will grow over time as Blu-ray player prices fall from $500 to $300 and below."
Photo: Flickr/pitzyper!
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