Netflix sees half million Blu-ray subscribers

DVD rental company Netflix Inc said on Monday it expects about 500,000 of its 8.7 million subscribers will be Blu-ray subscribers in the current quarter.

Netflix this month began adding $1 to monthly membership fees to provide unlimited access to high-definition Blu-ray movies. Netflix said the additional charge, to reflect the higher cost of Blu-ray discs, will be added to billing statements on or after November 5 and only to members who have previously enabled Blu-ray shipping on their Netflix accounts.

Netflix told analysts on a conference call it expected the number of Blu-ray subscribers to rise as sales of Blu-ray DVD players increase and prices of those items come down.

"We're optimistic that prices of Blu-ray players are falling," said Netflix Chief Executive Officer Reed Hastings on a conference call.