Blockbuster chooses Blu-ray: is the war over?

[roma_turok]

In a huge blow to Toshiba, Universal, and the rest of the HD DVD devotees, rental giant Blockbuster has decided to stock only Blu-ray discs in the vast majority of its nationwide locations, although HD DVD titles will continue to be offered online and in the 250 (out of 1,450) stores that have been testing both formats since last year. Blockbuster VP Matthew Smith revealed to the AP that the decision to go with Blu-ray -- which will reportedly be announced tomorrow -- stemmed from an overwhelming customer preference for those titles in the test markets, accounting for over 70% of all HD discs rented. Interestingly enough, it seems that content -- and not price -- was the deciding factor for consumers, with Blu-ray-only hits such as the Spiderman and Pirates of the Caribbean films apparently outmatching equivalent HD DVD exclusives. While it's still a little too soon to declare Blu-ray the outright winner, this Blockbuster decision only contributes to the momentum that Sony's darling has had of late -- momentum that at this point, might be too difficult for the other guys to counter.


http://www.engadget.com/2007/06/17/blockbuster-chooses-blu-ray-is-the-war-over

[roma_turok]

OK
The WAR is over

[SCDVD]

The HD DVD boys better make a sweet deal they can't refuse to Netflix even if they have to give them to them at no charge for a period of time. I'm not a fanboy for either format; I just believe the consumer is better off when there is robust competition.

[lordsmurf]

Don't give Blockbuster too much credit. They have never been an economic force. They were on the verge of bankruptcy at least once in the past.

Mom-and-pop chains pushed VHS in the 1980s, and retail stores pushed DVDs in the 1990s. It was well into the 2000s before Blockbuster stocked more than a couple DVDs in a store full of VHS. Then Netflix carried the DVD rental market, dwarfing Blockbuster.

Only recently has Blockbuster received some reprieve, but at what cost? Their online/in-store program has got to be complex and costly to maintain. You'll note they recently changed prices, giving discounts to those who rent online-only and don't mess with stores. Although that directly counters their marketing plan of "rent in store and online both for one low cost". Well, online-only has a lower cost.

Blockbuster could go belly-up and other stores would quickly fill their gap. They only represent a portion of the rental market, not a majority.

[Nitemare]

I agree with lordsmurf. Blockbuster had been put on the ropes by Netflix and they're still recovering from that. They are not enough of a force to sway any market. They were nearly knocked out of the market they're in!

[somebodeez]

Well - watch out for

Blu-ray disc coatings starting to rot?
A thread over at the AVS Forums has highlighted a potential problem with the coating of Blu-ray discs, described by many as "disc rot" due to the mould-like spots that have made several owner's Blu-ray discs unplayable.

Rest of the article:
http://www.engadgethd.com/2007/06/16/blu-ray-disc-coatings-starting-to-rot/

[Nilfennasion]

I thought The Digital Bits made a very persausive (for once) case at http://www.thedigitalbits.com/articles/soapbox/soap060107.html.

I could post my own arguments, but they would be speaking more from the heart than the mind.

[lordsmurf]

I thought The Digital Bits made a very persausive (for once) case at http://www.thedigitalbits.com/articles/soapbox/soap060107.html.

When people start talking about how porn will decide the fate of a video format, I quit reading. That's such an old bullshit myth, I can't believe it still exists.

[Nilfennasion]

That's just the thing. They lay that myth to rest in less sentences than most people expend on reviving it.

My personal favourite of the arguments used in that article would be the division in studio support. I cannot believe people are refusing to acknowledge that the format war has been won/lost already when there is only one studio fully committed to HD-DVD.

[lgh529]

The war may not be over, and Blockbuster may not be an economic force, but the media behind it is. Many people are not buying either format because they want to wait to see which is going to be available 5 years from now. They are also getting impatient and tired of all the media spin.

Whether or not Blockbuster has any economic force isn't the issue, the issue is the perception by the HD straglers of which format is gaining more acceptance. If the media says, "hey, a major company that rents movies is going to Blu-Ray", then the consumer see's that as a win for Blu-Ray and the momentum will build.

[MOVIEGEEK]

OK
The WAR is over

I agree,this will be the deathnail for HD-DVD(in the US) as was Beta.
Beta's demise was because of player price,length of tape and ultimately the availability of rentals.

[edDV]

I see it more as a sign Blockbuster is in trouble.

I don't blame them that they must choose one as they sink into the sunset.

Did they talk about rental revenue from either format? Did they talk about concessions from Sony? I guess their program to offer local pickup is kaput? Does this mean the postal customer gets half price if HD-DVD?

I think the last time I went into a Blockbuster was 2004.

What is driving this? The PS3 was to save BluRay but the PS3 is a dud. Ninetendo is the only game machine in the black. How many titles have they rented? If you look at player sales in either format Blockbuster needs to reserve space in the lifeboats for normal DVD first.

[oldandinthe way]

I share the skeptism that Blockbuster continues to matter.

There most recent numbers are awful. In the Boston area their franchisees have been closing at the end of their lease terms.

The only chain of rental stores which appear to be continuing on growth path are Movie Gallery, who specialises in small town locations. And I haven't looked at their numbers in a while.

[overloaded_ide]

What is a block buster?

Well that about says it all don't it!

I do live in a rural area, bigger towns nearby, I don't know of one of those stores in 50 miles at least!
Sure if I go to a BIG city 150 miles away I know they have several Block busters. Never rented from any though, I mean sure the price is cheap enough, but by the time I drive 150 miles home, watch a DVD and drive back 150 miles to return it, is it really worth it

The Blue Ray and HD is just all crap! Just like the format wars of DVD -R or +R.
Sure some may still fight that war but they are lost on a virgin island isolated from reality!

The winner of the war will be which ever gets to a low price first and has a High quality recordable disks!
Hey, do I care if I back up a blueray to a HD or a HD to a blueray?? HELL NO, I care about if the disk will be burnt correct and last for many years, I care about the cost of those disks and the cost of that burner!
We already have DVD to DIVX or MP4 and other junk, we will have HD to Blueray or Blueray to HD when the time comes!

If not, I'll just rent what ever it is and record to VHS or backup to DVD-R single layer and F them all! LOL!!

As my favorite song by Napoleon XIV goes, " There coming to take me away ha ha he he, their coming to take me away ha ha "

I'm happy with the quality of DVD -R so who really gives a rats behind, get a life!!!!!!!

[NiteLite]

The only chain of rental stores which appear to be continuing on growth path are Movie Gallery, who specialises in small town locations. And I haven't looked at their numbers in a while.

They dont look so good either. They are laying off employees including major hits to management to get a lower paid staff all around.
Their prices continue to rise. Their staff is being cut. The amount of new release inventory is being severely cut.
Anyway to save a dollar is Movie Gallery's approach now.
I talked with Mid-Management to confirm after my store manager was let go along with several part-timers. Lots of times one person is in the store to run it.
Their income is dropping even with the price increases. Lots of stores are planned to continue to close this year and next and new store opening expectations have been lowered also.
So all is not going well with MG also.
$4.19 for a movie is just too much. I and most have cut back severely and wait for Netflix, BB online etc.
Regards,
NL

[videopoo]

I thought The Digital Bits made a very persausive (for once) case at http://www.thedigitalbits.com/articles/soapbox/soap060107.html.

My personal favourite of the arguments used in that article would be the division in studio support. I cannot believe people are refusing to acknowledge that the format war has been won/lost already when there is only one studio fully committed to HD-DVD.



That was a very short sighted review in favor of Blu Ray...so much so I wrote the author a Letter:

Hi Bill

I read your article on why Digital Bit supports Blu
Ray. I think you missed some very important piece of
the puzzle:

From a developer's point of view I believe we have a
unique perspective on HD DVD vs BD-J that Digital Bits
and your readers are unable to provide. 90% of all Hi
Def content in the world is not owned by large studios
with million dollar budgets and the best programming
minds. As of now, a single BD-J title runs someone
back about $90,000. Needless to say its out of reach
for most content owners. As an independent HDi author
and developer, I have no choice but to offer HD DVD
to my clients who couldn't afford BD-J anyway. In
fact, Disney, Fox, MGM, Lionsgate and Sony are the
ONLY companies working in BD-J - ONLY 5 COMPANIES in
the world authoring BD-J! -can you believe that...only
5! Compare this to the thousands of independent
companies, developers and artist worldwide working on
HD DVD titles as we speak.

These technologies are in the beta stages at this
point - Especially Blu Ray! It was foolish and
selfish to release HD DVD and Blu Ray to the public
this early in the game - yes GREED! Just as you
indicated! Almost no testing as been done on both
side and you clearly see it in compatibility issues.
Blu Ray players only support level 1 at this point so
you could say HD DVD is technically better then
BD-J...technically that is Bottom line here is
that Digital Bits & the consumers were duped into
this "war" and its the consumers who will lose their
hard earned cash in the end.

some more points to discuss:

1. You failed to mentioned the reasons behind the
Porn industry going to HD DVD. As you may know, Sony
and Disney both control the right to refuse
replication to any content they deem inappropriate.
This brings about an interesting dilemma..wouldn't you
agree? OMG...is Sony going to control what we watch!
Hmmmm...Sony...Micorsoft...Sony...Microsoft

2. HD DVD players are cheaper to produce. Its based
on the current SD DVD spec so there aren't many
changes as you may think to the players themselves -
its not a business plan.

3. VC-1 is a superior codec at much lower bitrates
than MPEG 2. VC-1 was developed long before HD DVD or
BD-J was developed so its only natural its was a
preferred choice for both. It doesn't force anyone to
do anything - just be the best. Somehow you see this
as a negative in why your choosing Blu Ray over HD
DVD????.....However, most BD-J title are MPEG 2.

4. You paint Microsoft as the evil demon here. Why?
As you said, they have a superior codec and thats why
its used. They are a business, therefore they are
legally obligated to block as much competition from
the market as possible. Downloading 1 and 0s onto our
TV screens just might be the future and Yes, Microsoft
wants to be on top of that. You write like its a
negative?....maybe I'll dominate that market or maybe
you will- but at least they're trying...

In conclusion, you've stated that you recommend Blu
Ray over HD DVD but your reasons lack vision & thought.
Yes...Microsoft is trying to take over the world!
Big deal...is that a reason not to buy your favorite
movie on HD DVD? Most studios support Blu Ray but
MOST content owners are authoring in HD DVD. You
never added anything like picture quality, sound or
special features to your review...WHY?

As a consumer...i don't give a rat's butt who wins the
"war". But as someone in the trenches I feel its my
obligation to inform those who just might be receiving
a little too much info from the Best Buy salesman.

Good luck and keep up the great work!!!

Eric

[Bjs]

Well , combine this with personal choice , by gamers , either ps3 or xbox 360 purchase , and you have already made your choice in which format you should follow ... basically stuck with it unless you buy a unit to play the other format .

Remember the complaints from people and the hassles over vhs to dvd ... it not only cost people twice for the same titles they already owned , but many they have on vhs have never been released on dvd which is a really annoying point .

And they want you to do it all again ... tell them "no way for now" , and ignore the hype , its still infant times yet for both formats .

Its usually first in , first burnt ... smart people wait .

[jman98]

My personal favourite of the arguments used in that article would be the division in studio support. I cannot believe people are refusing to acknowledge that the format war has been won/lost already when there is only one studio fully committed to HD-DVD.

I don't think the format war has been won by BluRay at all. In fact, I've seen plenty of evidence to suggest that HD-DVD is outselling BluRay and basically people who have PS3s rarely buy BluRay discs. If the rumors are true that Walmart is going to sell an HD-DVD player for about $200 at Xmas, I think many people might re-evaluate which format has won and which has lost. In fact, on a review site I look it I see a lot of stuff coming out all the time on HD-DVD and it seems to me that more is coming out on this format than BluRay, so I think you may end up being wrong on your assessment that the war is over. I thought DVD+R won the DVD format wars too and yet DVD-R is still alive and well, so don't be surprised if you're wrong too on this one.

You should probably hope that BluRay doesn't win because Doom9 has speculated that it may be impossible to back up BluRay discs when BD+ rolls out and it's coming soon. I don't think consumers are going to be very happy with a high def format that can't be backed up. I know that people will say that everything can be backed up, but BD+ is going to be a tough nut to crack and if Doom9 feels that it may not be possible to crach it, that's not a good sign.

[rhegedus]

What is driving this? The PS3 was to save BluRay but the PS3 is a dud.

Not quite.

Acording to Nielsen, Blu-Ray disc sales have doubled since Nov 2006 when the PS3 was released. Despite HD having a 6-month unopposed head start, Blu-Ray now outsells HD by 2:1.

The PS3 may well be a Trojan Horse in the Blu-Ray/HD battle. When Blu-Ray wins, Sony will recoup its PS3 losses with Blu-Ray sales.

[somebodeez]

Netflix offers both.

[lordsmurf]

"Blu-Ray disc sales have doubled since Nov 2006"
But this seems more like coincidence than direct relation.

Consider the logic here:
PS3 was released in November.
Blu Ray sales have gone up since November.
PS3 must have caused Blu Ray sales to increase.

Same logic as:
John likes blue.
John likes bananas.
Bananas must be blue.

It's poorly thought out.

[rhegedus]

What made you think this was coincidence rather than direct correlation?

[raffie]

"Blu-Ray disc sales have doubled since Nov 2006"
But this seems more like coincidence than direct relation.

Consider the logic here:
PS3 was released in November.
Blu Ray sales have gone up since November.
PS3 must have caused Blu Ray sales to increase.

Same logic as:
John likes blue.
John likes bananas.
Bananas must be blue.

It's poorly thought out.

It's mostly your analogy wich is poorly thought out. There is a direct relation between the PS3 and Blu-ray; namely, the PS3 PLAYS Blu-ray discs, whereas theres is no direct relation between blue and bananas. A more accurate analogy would be:

Monkey population has doubled since November.
Monkeys like bananas.
Monkeys must have caused banana sales to increase since November

Kthks

[RLT69]

The numbers clearly show Blu-ray winning - for now. We'll have a better idea by the end of the year where HD-DVD and Blu-ray stand.

Observations:

1. A cheap HD-DVD player won't kill Blu-ray. Content will. Thing is Blu-ray has the backing of most of the studios - I think one isn't...So in termsof content, Blu-ray is sitting pretty.

2. "I don't think consumers are going to be very happy with a high def format that can't be backed up."

That's funny. Because outside of geeks I know of know consumer who EVER thinks about backing up a DVD. Mom & Pop could give a flying fig about that. So the myth that you can't back it up will stop people from BUYING Blu-ray is just that a myth. What's also funny is that people think somehow that HD-DVD is somehow impervious to DRM. It's not. Movie studios do not want their movies COPIED period, regardless of what format movies are on.

I think the BlockBuster decision is the canary in the coal mine. It's an early sign. Time will tell if others follow suite. Unless content companies push for one format, this could drag on for years.

[edDV]

Marketing hat on.

Studio deals, HDCP "Berlin Walls" and captive mastering process may win the lemmings that slave buy Hollywood promotional crap from the Today Show, etc. but the future is wide open outside these artificial standards. Neither BluRay nor HD DVD should be taken as a gate to serious production. Distribution outside these standards is wide open and compelling. Why even pay attention to Hollywood standards. The content quality of current Hollywood is so low (inbred idiots?) opportunity abounds outside.

If YouTube.com can be used as excuse for declining network ratings, it is clear the opportunity is outside the community.

[ViRaL1]

It probably doesn't hurt that there's a Blu-Ray burner under $300 and apparently no HD-DVD burners available.

(Yes, I realize it's currently out of stock)

http://www.compusa.com/products/product_info.asp?ref=cj&pfp=cat3&product_code=344526&P...e_Writer_Drive

[lordsmurf]

PS3 was released in November.
Blu Ray sales have gone up since November.
PS3 must have caused Blu Ray sales to increase.

Monkey population has doubled since November.
Monkeys like bananas.
Monkeys must have caused banana sales to increase since November

Nope, does not work. You have a monkey in all three sentences. Only two sentences can talk about a monkey. The monkey scenario is direct cause and effect.

The PS3/BluRay scenario has zero direct correlation in this manner.

It's more along the lines of:
More monkeys were born in November.
Banana sales have gone up since November.
Monkey births must have caused banana sales to increase.

That is absurd logic.
#1 Monkeys cannot buy anything, they're animals.
#2 So many other variables exist into why sales went up, down, or stagnated.

People need to quit making half-assed poorly-researched guesses. The easy answer is usually the wrong answer.

Whether Blockbuster makes any inroads into HD formats is yet to be seen. Given their track record in the past 10 years, don't count on it.

[EddyH]

I'm tired of all this to-ing and fro-ing

Given how quickly a pair of rival formats came along to "top" DVD in only about 10 years, vs about a good 20 for the tape formats, I'm going to wait until 2012 and see which of the even newer terabyte-class 3D movie smell-o-vision holographic cubes are the best.

Might have the money to reasonably afford a player and two or three titles by that point, too.

[dvd3500]

The easy answer is usually the wrong answer.

Right!
No, wrong!
errr... wait...

[rhegedus]

Smurf, cut the crap!

Why do you think that increased BR sales since the release of the PS3 is no more than coincidence?