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Netflix to cease carrying new HD DVD titles

The tide continues to turn in the ongoing high-definition format war. Netflix, the first choice in online movie rental service in the U.S., today announced that it will exclusively stock Blu-ray Disc as the only choice for its customers looking for high-definition content.

Earlier this year, Warner Bros. shook the industry when it announced that it would release movies exclusively on Blu-ray Disc starting this summer. Netflix states that, with four major Hollywood studios now behind Blu-ray Disc, it too will back the format held by the majority.

Since the inception of HD DVD and Blu-ray Disc, Netflix gave its customers opportunity to rent from both formats. But by the end of this year, the online rental service will have phased out HD DVD, leaving Blu-ray Disc as the lone option.

HD DVD hardware owners will have to look to alternative rental outlets for software, as Blockbuster announced last summer that its retail stores would also carry only Blu-ray Disc. Blockbuster’s Total Access online rental service, however, continues to provide HD DVD as an option.

"The prolonged period of competition between two formats has prevented clear communication to the consumer regarding the richness of the high-def experience versus standard definition," said Ted Sarandos, chief content officer for Netflix. "We're now at the point where the industry can pursue the migration to a single format, bring clarity to the consumer and accelerate the adoption of high-def. Going forward, we expect that all of the studios will publish in the Blu-ray format and that the price points of high-def DVD players will come down significantly. These factors could well lead to another decade of disc-based movie watching as the consumer's preferred means."

Only a small percentage of Netflix’s seven million subscribers elected to rent high-definition movies, and the company says that most of its customers have chosen Blu-ray Disc over HD DVD.

"From the Netflix perspective, focusing on one format will enable us to create the best experience for subscribers who want high-definition to be an important part of how they enjoy our service," Added Sarandos.

As part of the transition to Blu-ray Disc, the Netflix said it will acquire no new HD DVDs but that its existing inventory would continue to rent until the discs' natural life cycle (through loss or damage) takes them out of circulation in the coming months.

Although Blu-ray Disc may have more support, Universal Studios, Paramount Pictures and DreamWorks Entertainment are still exclusive to HD DVD. This means that Netflix customers will be without a high-definition option for upcoming releases such as Beowulf, Bee Movie, Sweeney Todd, The Jack Ryan Collection, American Gangster, Braveheart, Forrest Gump, Star Trek and potentially even Indiana Jones.



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RE: uh, what?
By 777 on 2/11/2008 10:45:59 PM , Rating: 2
quote:
More than likely the price of entry and price of movies is what is holding consumers back. "Format War" is not holding people back.


Sorry to disagree, but this is plain wrong, two formats IS holding people back. Everyone I know has waited this out as they do not want to waste money on a format this isn't going to be around for 10yrs. DVD has now been around just over 10yrs, when it started as no seems to remember we had DIVX, this format didn't fly for various reasons, when there was one clear format consumers jumped in by the masses and prices went down due to mass production and competition for one format, not confusion over which format do I choose.

I will never say Blu-ray is necessarily the better format but both consumer and content makers/distributors are favoring Blu. Two formats is not helping the consumer in anyway and I said this before this is not like gaming consoles. There needs to be one format and the companies selling and distributing the product know this.


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