During a conference call in San Fransisco Netflix CFO Barry McCarthy said that the online rental company believes Blu-ray’s impact on the home entertainment industry will be minimal for 2008.
McCarthy believes Blu-ray adoption has been very slow, but he also thinks that the holiday season might change the outcome since consumer electronics hardware sales usually occur during the December month.
“It may grow after the holiday selling season, if sales are slow and prices are cut more aggressively,” he said.
Netflix’s CFO expected the Blu-ray player price point to be at an average of $399 by the end of 2008, and sees price points of $299 next year and $199 thereafter.
During the Olympics Netflix encountered a distribution problem, which affected 15% of the company’s subscribers. McCarthy says that the impact could’ve been worse.
“Fortunately for us it did happen during the Olympics, when consumers were busy consuming content on their TV set, rather than from us,” McCarthy told Home Media Magazine. “The effect on our brand could have been much worse.”
If December will be a blue month is something we can’t say yet.