Blockbuster Cuddles Up to Blu-Ray, Dumps HD-DVD
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This week Blockbuster announced plans to begin only renting high-def DVDs in the Blu-ray format. This announcement could possibly apply additional pressure to the HD-DVD camp as it fights to win the on-going format war with Blu-ray. What I’m not sure of is just how much of a juggernaut Blockbuster Video really is anymore. They’re desperately trying to play catch-up to Netflix in the online market, which is not only hurting them there but also back in their brick and mortar locations as well. So should HD-DVD really be that concerned about this decision?


Blockbuster is currently renting both versions of the high-def formats in only 250 locations. When they expand that to over 1400 locations next month the additional stores won’t receive any HD-DVD copies. Unfortunately I think this will mainly hurt the customers. Not all movies are available in both formats as some studios are chosen to become exclusive on one format or the other. Universal Studios’ movies are only available on HD-DVD, so when one of those comes out Blockbuster customers will have to look elsewhere for availability. Elsewhere like Netflix which makes both formats available at the check of a box for no additional charge.

The Associated Press reports:

The North American HD DVD Promotional Group said Blockbuster’s decision was shortsighted and skewed by the success of films released by Blu-ray studios in the first three months of the year. The group said HD DVD has since gained momentum, selling more players and popular titles such as “The 40-Year Old Virgin” and “The Matrix” trilogy.

The movie prices between the two formats are negligible, but once you get to the players the price gap really widens. Toshiba’s HD-DVD second generation player is available at Costco for only $250 (plus you get $125 worth of free HD-DVDs with its purchase anywhere) while Sony’s Blu-ray player is going for $499 with no rebates. Considering both formats can play at the same level of high-definition fidelity I’m not sure why there’s even a “war” going on between them. I’ve already made my choice and am very happy with it.

There’s been a lot of media coverage of this format war and it’s disappointing to see such blatantly misleading information out there. Gizmodo is running an article entitled “Blu-ray Players Dominate 5 to 1 Over HD DVD in US“. Now that title really hits a blow to HD-DVD, until you keep reading that is. The numbers they use are 1.5 million Blu-ray players and 300K HD-DVD players. Again, sounds convincing, until, again, you keep reading. The 1.5 million Blu-ray players is really 1.4 million PS3s + 100K standalone players. The 300K HD-DVD players is really 150K XBOX 360 HD-DVD add-ons plus 150K standalone players. So if you then compare the number of standalone players HD-DVD is outselling Blu-ray 1.5 to 1. If you compare on both sides the number of devices out there that had to be intentionally purchased for the sole purpose of playing back hi-def DVDs then the gap widens at 3:1 with HD-DVD over Blu-ray. So well done Gizmodo for your intentionally slanted and misleading title. I hope your kickback from Sony was worth it.

Source: Associated Press

Written by: Matt
Posted on: Friday, June 22, 2007

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