Blockbuster to favor Blu-ray HD discs over DVD format

Jeff® · 06-17-2007, 05:32 PM

http://www.elpasotimes.com/entertainment/ci_6164939

AP Exclusive:
Blockbuster to favor Blu-ray HD discs over DVD format
By Gary Gentile / AP Business Writer
Article Launched: 06/17/2007 02:40:24 PM MDT

LOS ANGELES - Blockbuster Inc. will rent high-definition DVDs only in the Blu-ray format in 1,450 stores when it expands its high-def offerings next month, dealing a major blow to the rival HD DVD format.

The move, being announced Monday, could be the first step in resolving a format war that has kept confused consumers from rushing to buy new DVD players until they can determine which format will dominate the market.

Blockbuster has been renting both Blu-ray and HD DVD titles in 250 stores since late last year and found that consumers were choosing Blu-ray titles more than 70 percent of the time.

"The consumers are sending us a message. I can't ignore what I'm seeing," Matthew Smith, senior vice president of merchandising at Blockbuster, told The Associated Press.

Blockbuster will continue to rent HD DVD titles in the original 250 locations and online, the Dallas-based company said.

The decision was helped in large part by the lopsided availability of titles in Blu-ray, Smith said. All major studios except one are releasing films in Blu-ray, with several, including The Walt Disney Co., releasing exclusively in Blu-ray. Only Universal Studios, which is owned by General Electric Co., exclusively supports HD DVD.

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Robert Crawford · 06-17-2007, 05:34 PM

Not surprising considering the studio situation as far as format releases.

Crawdaddy

Jason Seaver · 06-17-2007, 05:41 PM

A bit odd considering their arrangement with The Weinstein Company, which so far has only supported HD DVD.

Quote:

Blockbuster has been renting both Blu-ray and HD DVD titles in 250 stores since late last year and found that consumers were choosing Blu-ray titles more than 70 percent of the time.

"The consumers are sending us a message. I can't ignore what I'm seeing," Matthew Smith, senior vice president of merchandising at Blockbuster, told The Associated Press.

That you'll potentially push 30% of your HD customers to Netflix?

CRyan · 06-17-2007, 07:58 PM

I wonder if there is anything going on in the background that pushed this decision?

But either way, I would imagine that BB management is looking at total cost and profit with this decision. They may lose 30% of their HD business to Netflix but I would imagine that business loss will be more than offset by expanding their Blu Ray collection and not wasting space on unrented HD media.

ppltd · 06-17-2007, 08:02 PM

Quote:

Originally Posted by CRyan

But either way, I would imagine that BB management is looking at total cost and profit with this decision. They may lose 30% of their HD business to Netflix but I would imagine that business loss will be more than offset by expanding their Blu Ray collection and not wasting space on unrented HD media.

Seems to me any space allocated to either HD format is pretty much wasted space. There just is not a big enough rental client base for either format to make much of a difference.

**HTF Ads**

Jordan_E · 06-17-2007, 08:04 PM

As long as they start stocking SOMETHING at my local Blockbuster, and since PS3 games are laughable at this point...

Jason Roer · 06-17-2007, 08:21 PM

Fine by me. This is very funny. I was just asking my wife the other day if she would mind if we switched back to Netflix. We had so much trouble with Blockbuster in terms of shipping and not getting movies at the top of our list, that we've just had it with them. And they've even given us 3 FREE MONTHS! It just doesn't make up for how bad their shipping system is. And now they aren't even going to have HD-DVDs in store when they finally roll out HD optical?

As Thomas already pointed out, it's completely irrelevent this decision at this point, as the client base is currently too small. However, as more people walk into their local blockbuster and see Bluray - they will begin to think this is THE HD format ofchoice, so it will have an impact on this war over time.

Off subject entirely - I'm watching GhostRider right now. It's just really pretty bad. The SFX look like something out of a PS2 game. I had to start surfing the forum to keep myself from falling asleep. Too bad though - great comic book.

Cheers,

Jason

Dave H · 06-17-2007, 09:01 PM

It will be interesting to see if other rental outlets and retailers follow BB.