Blockbuster Picks a Side in the HD Format Wars

[DouglasMcc]

Blockbuster will today announce plans to strongly back the Blu-ray high definition format at the expense of HD DVD. From next month 1,450 stores will stock Blu-ray titles only.

ImageSince late last year Blockbuster has been renting Blu-ray and HD DVD movies in 250 stores. However, Matthew Smith, senior vice president of merchandising at Blockbuster, told The Associated Press that the company couldn’t ignore the popularity of Blu-ray, which consumers have been favoring at a rate of 7:3, and that the company was developing its strategy accordingly.


Well, this is definitely a positive sign after Sony's 8 month plummet. Blockbuster is the dominant brick-and-mortar renter in this country ... and they are slowly but surely taking the online game away from Netflixs. Eliminating HD-DVD as a choice at rental could sway a lot of people. And if Sony has the sense to drop the price of the PS3 at X-mas as has been hinted by their new CEO, well, they might have a chance to win a format war for once - NO! could Hell be freezing over as we speak?

 

[mfoga]

Not sure where you found that info but that was a very incomplete story.

Here is the real story.


DALLAS, June 18, 2007 – In response to the growing demand for high-definition DVDs, Blockbuster Inc. (NYSE: BBI, BBI.B) today announced that it is rolling out an expanded Blu-ray disc inventory for rental to 1,700 corporate-owned BLOCKBUSTER® stores by mid-July. The Company will continue to offer both Blu-ray and HD DVD titles through its online rental service, www.blockbuster.com, and will continue to offer both formats at its initial 250 stores that currently carry both high-definition formats.

"We intend to meet the demands of our customers and based on the trends we're seeing, we're expanding our Blu-ray inventory to ensure our stores reflect the right level of products," said Matthew Smith, SVP Merchandising for Blockbuster. "While it is still too early to say which high-definition format will become the industry standard, we will continue to closely monitor customer rental patterns both at our stores and online, so we can adjust our inventory mix accordingly and ensure that Blockbuster is offering customers the most convenient access to the movies they want, in the format they want."

When Blu-ray and HD DVD were introduced to the marketplace in 2006, Blockbuster began offering the high-definition formats on all titles in which it was available through blockbuster.com. The Company also introduced both formats on select titles in 250 stores in November of 2006. With Blu-ray rentals significantly outpacing HD DVD rentals at its BLOCKBUSTER stores, the Company made the decision to expand the number of stores offering the Blu-ray format.

With the expansion in July, the 1,700 stores will be carrying more than 170 titles in Blu-ray and will continue to add titles in the format as they are released from the studios.

"We are excited to be able to make more high-definition titles available to our customers in those stores where our research indicates there will be the most demand," said Smith. "Obviously, when customers are ready we can expand the Blu-ray offering into more stores and add HD DVD to more locations if that's what customers tell us they want. We'll continue to work with the movie studios to ensure we have the right assortment of products."

Blu-ray formatted titles are available from Sony Pictures Home Entertainment, Metro-Goldwyn-Mayer Home Entertainment, FOX Home Entertainment, Buena Vista Home Entertainment, Lionsgate Home Entertainment, Warner Home Video, and Paramount Home Entertainment and can be played on Blu-ray dedicated players, Sony PLAYSTATION®3 (PS3™) or a Blu-ray compatible computer drive.

 

[DouglasMcc]

Not to nit-pick, but the story I clicked and pasted says the same thing, it's just condensed.

Sure, HD-DVD will continued to be stocked ... at those initial 250 stores. They already spent the money, why not leave them there. And, technically, they will still be carrying them online. They only problem with that is that Blockbuster gets its online movies from individual stores - they actually ship them out internally. It's not like Netflix where they ship them from some warehouse.

HD-DVD is not dead or dying, never meant to imply that. But this will definitely be a boost to Sony here in the States.

 

[Shropt]

Remember that Blockbuster took months to finally start renting Xbox360 games in their stores. They had no problem selling the systems and accessories but they really waited a while before renting the games.

 

[Karma]

https://www.engadget.com/2007/06/16/blu-ray-disc-coatings-starting-to-rot/

 

[mfoga]

Not to nit-pick, but the story I clicked and pasted says the same thing, it's just condensed.

Sure, HD-DVD will continued to be stocked ... at those initial 250 stores. They already spent the money, why not leave them there. And, technically, they will still be carrying them online. They only problem with that is that Blockbuster gets its online movies from individual stores - they actually ship them out internally. It's not like Netflix where they ship them from some warehouse.

HD-DVD is not dead or dying, never meant to imply that. But this will definitely be a boost to Sony here in the States.

Well if you read that then why the title when they say flat out the exact opposite of what you put in the title?

Actually about where the ship from is not true, they ship from a warehouse and from stores. They use local stores when they can to speed up how fast they get to customers with less warehouses but they do ship from warehouses too.

 

[DouglasMcc]

Well if you read that then why the title when they say flat out the exact opposite of what you put in the title?

Actually about where the ship from is not true, they ship from a warehouse and from stores. They use local stores when they can to speed up how fast they get to customers with less warehouses but they do ship from warehouses too.

Okay, you might be right about the warehouse thing. I started with Blockbuster Online when it began (jumped ship from Netflix) and back then, I was told that most rentals came from brick and mortar stores. So, if I was wrong, then I apologize for that error.

However, I still do not see how my title is misleading. Blockbuster is going to have Blu-Ray discs in 1750 stores, as compared to 250 for HD-DVD. How is that not "picking a side." They feel that the most profit is with Blu Ray right now, but they are leaving the door open to come back to HD-DVD if it re-emerges on their radar - think of it as Swiss Diplomacy. But, by releasing a press release touting the success of Blu-Ray DVDs over HD-DVD at rental, then cutting HD-DVD out of the nationwide roll-out (those original 250 stores were just for market share study), seems to me, at this point, Blockbuster is banking on Blu Ray. Now, does that mean Blu Ray will win? No. But it helps.

 

[El Roranous]

Okay, you might be right about the warehouse thing. I started with Blockbuster Online when it began (jumped ship from Netflix) and back then, I was told that most rentals came from brick and mortar stores. So, if I was wrong, then I apologize for that error.

However, I still do not see how my title is misleading. Blockbuster is going to have Blu-Ray discs in 1750 stores, as compared to 250 for HD-DVD. How is that not "picking a side." They feel that the most profit is with Blu Ray right now, but they are leaving the door open to come back to HD-DVD if it re-emerges on their radar - think of it as Swiss Diplomacy. But, by releasing a press release touting the success of Blu-Ray DVDs over HD-DVD at rental, then cutting HD-DVD out of the nationwide roll-out (those original 250 stores were just for market share study), seems to me, at this point, Blockbuster is banking on Blu Ray. Now, does that mean Blu Ray will win? No. But it helps.

To be honest....even after reading your very first post I assumed you meant that Blockbuster was dropping HD-DVD.

 

[DouglasMcc]

To be honest....even after reading your very first post I assumed you meant that Blockbuster was dropping HD-DVD.

Well, if it was misleading, then I again apologize. If I had meant it that way, I would have posted something to the extent of "Blockbuster abandons HD-DVD in favor of Blu-Ray." Semantics and rhetoric I guess.

 

[El Roranous]

Well, if it was misleading, then I again apologize. If I had meant it that way, I would have posted something to the extent of "Blockbuster abandons HD-DVD in favor of Blu-Ray." Semantics and rhetoric I guess.

No worries man. :chew

 

[KrisSolo]

^^ ****stirrer

 

[hairlesswookiee]

yeah this is lame. i hate that blu ray is outselling the HD movies when they offer the same video quality. i guess im gonna have to break down and buy a PS3 sooner or later. just seems strange that HD movies are selling less even though they generally cost less than Blu Ray to make. and the players are cheaper too.

 

[El Roranous]

yeah this is lame. i hate that blu ray is outselling the HD movies when they offer the same video quality. i guess im gonna have to break down and buy a PS3 sooner or later. just seems strange that HD movies are selling less even though they generally cost less than Blu Ray to make. and the players are cheaper too.

I won't be dishing out for the PS3 anytime soon. I had one in hand and I was not impressed. I bet HD-DVD will still win this war.

 

[DouglasMcc]

yeah this is lame. i hate that blu ray is outselling the HD movies when they offer the same video quality. i guess im gonna have to break down and buy a PS3 sooner or later. just seems strange that HD movies are selling less even though they generally cost less than Blu Ray to make. and the players are cheaper too.

I would wait til X-mas to buy a PS3 if you are serious. The "talking heads" in charge of Sony have been hinting recently that an X-mas price drop is in the works. I doubt it would be more than 100 bucks, but it still would save you some money.

P.S. However, if you are in the mood to upgrade your TV, you can get a PS3 for free* - free in that Best Buy is running a deal this week where you buy a Sony 40" LCD 1080P TV, a PS3 game, A Blu Ray movie, and the PS3 60 gig and get 600 dollars deducted from your total. Worthless, yes, if you are happy with your TV, but if you are upgrading, go for it.

 

[DouglasMcc]

I won't be dishing out for the PS3 anytime soon. I had one in hand and I was not impressed. I bet HD-DVD will still win this war.

El Roranous, I am somewhat surprised. As big a PotC fan as you are .... you do realize that Blu Ray is the only way to see Black Pearl, Deadman's Chest, and AWE in high def correct?

Besides, with the advent of the multi-format players in the near future, it's possible both formats could survive.


The one part I don't get is the belief that HD-DVD titles are cheaper. Shopping on Amazon for the few Blu Ray I have bought, the Blu Ray titles are in the 20 to 30 range. HD-DVD titles are more in the 25 to 35 range. Not sure if that's because Blu Ray is outselling HD-DVD, so Amazon offers better discounts, or what. However, I never use MSRP as a price determinate. Because I refuse to shop anywhere that MSRP is the price.

 

[El Roranous]

El Roranous, I am somewhat surprised. As big a PotC fan as you are .... you do realize that Blu Ray is the only way to see Black Pearl, Deadman's Chest, and AWE in high def correct?

I too am very surprised at...myself. I would LOVE to see PotC in High def but I just can't justify buying a Sony PS3. I dislike Sony and how they handle things. Furthermore, I want HD-DVD to win because hold on for this surprise....I hate Sony.

On that same note. I think a whole slew of movies I really would like to own are coming strictly to Blu-Ray. Like Harry Potter but I will wait. If they get LoTR that could be my breaking point.

Besides, with the advent of the multi-format players in the near future, it's possible both formats could survive.

Let's hope not. Old people could get confused.

The one part I don't get is the belief that HD-DVD titles are cheaper. Shopping on Amazon for the few Blu Ray I have bought, the Blu Ray titles are in the 20 to 30 range. HD-DVD titles are more in the 25 to 35 range. Not sure if that's because Blu Ray is outselling HD-DVD, so Amazon offers better discounts, or what. However, I never use MSRP as a price determinate. Because I refuse to shop anywhere that MSRP is the price.

I honestly have not purchased an HD DVD even though I have the player. I only watch HD DVDs when I rent them through Netflix. I actually think that they are too expensive at the moment and am waiting for a price drop.

I know and I will say it. If it isn't a collectible then I am cheap.

 

[hairlesswookiee]

there's a moviestop by me and the HD movies are all generally a couple dollars less than the blu ray counterparts. not sure if its just the store prices or what,but the costs to produce the movies is what i'm always referring to. and the players are generally half as much as the bluray.

~~and harry potter will be coming out on HD eventually. if you can't wait you can import them from England i believe. the goblet of fire was released over there on HD a month or two ago.
https://cgi.ebay.com/Harry-Potter-T...goryZ617QQssPageNameZWDVWQQrdZ1QQcmdZViewItem

 

[sonolimy]

Blu-ray is a superior format over HD, due to blu-ray being able to hold a substantial amount of info on its disc. Which in the long run mean more potential for the format, more content that can be added to the movies. High technology is alway a tad more expensive when it first comes out. I rather pay 30$ for a blu-ray, if it means im getting superior quality over DVD, even HD

 

[DouglasMcc]

I honestly have not purchased an HD DVD even though I have the player. I only watch HD DVDs when I rent them through Netflix. I actually think that they are too expensive at the moment and am waiting for a price drop.

I know and I will say it. If it isn't a collectible then I am cheap.

Yeah, I agree ... I am cheap too when it comes to DVD/Blu Ray purchases. I now own a grand total of 6:

PotC-Curse of the Black Pearl
PotC-Deadman's Chest
The Departed
Superman Returns
Talledaga Nights
Hellboy Director's Cut

The most I paid for these was the 2 PotC discs - bought them at release from Amazon for 23.99 a piece with free shipping. The other ones I managed to get for 12 to 15 bucks because, until quite recently, Gamestop here treated Blu Ray's like the regular DVD counterparts when they sold them used. Sadly. they realized the error in this thought process Still a lot of other movies on Blu Ray I would love to own ... like Casino Royale, but they hover around the 25 to 30 mark and I just can't pull the trigger at that price.

I use Blockbuster Online to rent my Blu Ray and reg. DVDs. With the store exchange program, you basically get to have 6 movies out at a time (3 from online, plus each mailer has a coupon code on it to return at the store and get 3 store rentals ... at the same time, they still send you 3 movies from the online service). Add to that the 2 coupons you get a month that can be used to rent 360, Wii, or PS3 games ... and it's best best 17.99 I spend a month.

 

[DouglasMcc]

Blu-ray is a superior format over HD, due to blu-ray being able to hold a substantial amount of info on its disc. Which in the long run mean more potential for the format, more content that can be added to the movies. High technology is alway a tad more expensive when it first comes out. I rather pay 30$ for a blu-ray, if it means im getting superior quality over DVD, even HD

You are right about it being the superior technology. However, that doesn't always equal victory in these matters. Betamax was far superior to VHS. However, the market chose VHS and the rest is history.

I won't pretend that I am backing Blu Ray because of some technophile yearning. I own a PS3 and don't want to have to shell out another 300 to 500 bucks for HD-DVD player if Blu Ray fails.