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February 11, 2008 2:35 PM PST

Netflix says no to HD DVD

by David Carnoy

HD DVD's coffin gets another nail.

Word was out this morning that Netflix was giving up on HD DVD, but now Netflix is getting personal about it. I just received the following e-mail:


Dear David,

You're receiving this e-mail because you have asked to receive high-definition movies in the HD DVD format. As you may have heard, most of the major movie studios have recently decided to release their high-definition movies exclusively in the Blu-ray format. In order to provide the best selection of high-definition titles for our members, we have decided to go exclusively with Blu-ray as well.

While we will continue to make our current selection of HD DVD titles available to you for the next several months, we will not be adding additional HD DVD titles or reordering replacements.

Toward the end of February, HD DVDs in your Saved Queue will automatically be changed to standard definition DVDs. Then toward the end of this year, all HD DVDs in your Queue will be changed to standard definition DVDs. Don't worry, we will contact you before this happens.

You can click here to change your format preferences.

We're sorry for any inconvenience. If you have any questions or need further assistance, please call us at 1 (888) 638-3549.

-The Netflix Team


While I'm often accused of being a Blu-ray supporter (I think this e-mail proves I'm not as one-sided as some people might think), the note actually makes me kind of sad. The fact is I'm much more of a renter than a buyer. I always thought (naively) that if I got a hankering to watch an HD DVD on my XBox 360 HD DVD player, I would be able to rent it from Netflix--even if HD DVD went down. Not so much anymore.

Is this the final nail in the coffin? Well, couple this Netflix announcement with Best Buy's announcement that it "will recommend Blu-ray as the preferred format" and the end looks very near. Of course, HD DVD fans can remain in denial.

Originally posted at Crave
Hunkered down in New York City, Executive Editor David Carnoy covers the gamut of gadgets and writes his Fully Equipped column, which carries the tag line "The electronics you lust for." He's also the author of "Knife Music," a novel. E-mail David. Follow David on Twitter.
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Add a Comment (Log in or register) Showing 1 of 2 pages (37 Comments)
Feel kinda bad myself...
by MATTAND February 11, 2008 3:24 PM PST
Reply to this comment
Feel kinda bad myself, actual post
by MATTAND February 11, 2008 3:37 PM PST
Sorry about that first post. Hit the return key by accident.

Anyway, even though I'm a PS3 owner, HD-DVD had some nice features going
for it: a more finalized spec and standard/HD movies on one disc, among
others. The competition from HD-DVD would have kept the Blu-ray camp on
its toes. Heck, up until CES, I would tell people that my PS3 had the potential
of becoming a nicely designed Beta player.

IMHO, however, at the end of the day most consumers still have a standard
def TV and therefore don't need a hi-def player. It may not be tomorrow, but
I would imagine the rental model will move to the Intertubes, obseleting any
physical disc player.
Kudos to Netflix
by commorancy February 11, 2008 3:57 PM PST
It was inevitable that if the HD format war had continued, consumers would abandon both formats and wait for downloads. It's actually a good thing that places like Netflix and the movie studios are taking the hard line. That doesn't mean I prefer the Blu-Ray format. I just prefer that at least one of the formats survive and frankly I don't care which one. I'll buy into whichever format wins.. and I think most consumers are basically in this boat. Kudos to Netflix for making the hard choice.

--
Brian W.
Reply to this comment
I think it's safe to say: Finally it's over!!
by 7aji88 February 11, 2008 5:44 PM PST
with WB and Net Flex only using Blue Ray, I think the new HD format war should be over and consumers can buy their new players.
Reply to this comment
Blockbuster, and now Netflix...
by Wes3000 February 11, 2008 8:50 PM PST
You cannot even RENT an HD DVD! It's all Blu-ray. It's all over. We just need Toshiba to turn out the lights and let the last 2 studios out of their sinking cages.
Reply to this comment
Perhaps another Company wants the1 mill customers?
by AnthonyNYC February 13, 2008 9:48 PM PST
Toshiba has sold over 1 million HD-DVD players to movie collectors already just in the USA alone, with the 2 million mark expected to be reached this year with lower prices.
If only HD-DVD player owners rented from Netflix, that is ONE MILLION, Yes, 1 million customers. They should be so lucky! to have them all as customers.
But they expect to keep them all by making them what pay another $400 for a BD machine? LOL Or give up HD?
I think more likely you will see a NEW online rental company emerge from this action soon that caters to the existing 1 million plus HD-DVD owners who wish to rent movies before making purchases.
That seems more likely to me.
Netflix is only hurting themselves!
by AnthonyNYC February 11, 2008 9:17 PM PST
I too received the note today and wrote back, same as them, when my current que is empty i will be cancelling my Netflix account.
This way i can continue buying HD-DVD's for my collection and instead of renting, i can preview the movies ONDemand before purchasing.
Costco has Toshiba HD-DVD players for sale today for $129 with free HDMI cable and 2 free movies inside box (plus 5 rebate) and right next to them is a BluRay player for $379 on sale with nothing extra, Sony knows HD-DVD would have become the new standard if left to free market economics, so it is doing everything and anything to scare people that movies won't be available for them.
I hope this scare tactic backfires on them, and people continue to buy HD-DVD players and force the studios to sell movies on the format or regular DVD stays the standard with upconverting players selling like hotcakes under $100.

Either way, So long Netflix, it was good while it lasted.
AnthonyNYC
Reply to this comment
Blu-Ray? No way!!!!
by trryan2001 February 12, 2008 12:12 AM PST
Do Blu-Ray machines play the current DVD format? No they don't. Do they deliver a better picture or sound than HD DVD, I don't think so, 1080p is the max. The HD DVD players play the existing format and upscale it to boot.

This is how the studios and Sony create a new market by making our exisitng DVD collections unplayable on the new hardware. I'm canceling my Netflix account before the next billing and hope a few million other consumers do the same.
Reply to this comment
Blu-ray players DO play all standard DVDs
by Wes#1 February 12, 2008 5:31 AM PST
What in the world makes you think they don't? Blu-ray players output a 1080p HD picture that is certainly the equal of HD DVD; but they also play and upconvert any standard DVD to 1080 as well. Full backward compatibility.

So much hype and misinformation out there...
Don't lie now
by giannig February 12, 2008 9:51 AM PST
Listen, I understand your frustration, but do not make up something that is coming from pure emotion. People reading this, do not believe what this person is saying.

All Blu-ray players, as well as HD DVD players; play back your SD DVD's. If you do not feel like replacing your entire collection, you can still play them on a Blu-ray player and they will also upscale them to 1080p (still not as good as a Blu-ray movie, but will look somewhat sharper). This person is doing nothing but spreading lies now.

Here is one fact, you are not going to get anything better than 1080p. All Blu-ray players play 1080p resolution movies. But not all HD-DVD players will play 1080p movies. Some will only go up to 1080i. The Toshiba HD-D3 only goes up to 1080i and the same goes with the HD-A3. That is why they are at least $50 cheaper than the other HD-DVD players.

I am glad one format is finally coming out on top. I sided with Blu-ray since the beginning, so no money lost on my side. But if the tables were turned the other way and I was forced to end up getting an HD DVD player; then so be it. I love HD quality movies and both formats provided that.
SOME PEOPLE JUST DON'T GET IT...
by Barçafan February 12, 2008 4:52 AM PST
For those that do not believe or refuse to accept it:

HD DVD is over, se acabo, finito. Don't you get it? As much as you might love and be loyal to HD DVD, they've lost. Move on, life must continue. Just stop crying and get a BD player.

And not, Netflix is not going out of business because a few sad and angry HD DVD supporters are canceling their memberships. By the way, there are MANY more Netflix members that have BD as the format for HD movies.

So, if you are so upset with Sony for being the winner, you can always watch standard DVDs and VCR tapes. But watch out, because some of those might be Sony movies...
Reply to this comment
How can U call 2 million people a few sad people?
by AnthonyNYC February 13, 2008 9:45 PM PST
Toshiba has sold over 1 million HD-DVD players to movie collectors already just in the USA alone, with the 2 million mark expected to be reached this year with lower prices.
If only HD-DVD player owners rented from Netflix, that is ONE MILLION, Yes, 1 million customers. They should be so lucky! to have them all as customers.
But they expect to keep them all by making them what pay another $400 for a BD machine? LOL Or give up HD?
I think more likely you will see a NEW online rental company emerge from this action soon that caters to the existing 1 million plus HD-DVD owners who wish to rent movies before making purchases.
That seems more likely to me.
:)
Why did Blu-ray win?
by iconoclast04 February 12, 2008 5:20 AM PST
Did Blu-ray win because of customer demand? Well, maybe in part. Did it win because of superior technology? Not really, particularly since it's not even a settled standard yet. I would say the biggest reason is that Sony leveraged its PS3 and its movie studios to thwart the competition. That's fine. But it's also the kind of thing that rabid anti-Microsoft people would scream bloody murder about. Think about that the next time you start complaining about an MS 'monopoly.'
Reply to this comment
I will still wait
by labazzo February 12, 2008 6:15 AM PST
I don't care who wins. I will not be buying a Blue ray player any time soon. If they can't play my regular DVD's and upconvert then no buy here. All my old movies probably will not be coming out on Blue ray any time soon. As long as Standard DVDs are made, That is what I buy. My upconvert DVD player does a nice job for me.
Reply to this comment
Blu-ray will play SD DVD
by giannig February 12, 2008 9:56 AM PST
You are misinformed. All Blu-ray players will play your standard definition DVD's and will also upscale them.
See how misinformed folks are.
by portcityjames February 12, 2008 6:20 AM PST
One poster actually said that Blu Ray players don't play current DVD's. That is so misinformed that it's laughable. Before you knock Blu Ray, why not get all the facts. YOU CAN PLAY current DVD's on a Blu Ray player and all you folks canceling your subscriptions, you'll be back as soon as you finally accept the fact that HD-DVD is dead and you buy a Blu Ray player. I don't care how much you say you won't, YOU WILL. It may not be today or soon but if it is the standard, YOU WILL BUY ONE. And if you want to rent movies, you will either go to NETFLIX or BLOCKBUSTER. For some reason you folks think you canceling your subscription will make Netflix change thier mind. While your at it stop shopping at Best Buy, Target and Wal Mart while your at it as they all prominently have more Blu Ray then HD-DVD support. Grow up and accept the loss and move on. You guys sound like little sulking children. "If I can't play you can't use my ball". LOL.
Reply to this comment
At it again.
by DCBRONCO March 18, 2008 12:26 PM PDT
Some early Blu-Ray players could not play CDs. I'm not sure about DVDs. Blu-Ray will be gone in two or three years or will be another format on the side for Sony. Not many will really use it. Two or three million movies for five million players in the US is a terrible attach rate after two years of sales. If Sony believes in it so much, they should release some hard numbers. They won't because the real numbers are embarrassing.
Blu Ray players do upconvert also!!!
by portcityjames February 12, 2008 6:22 AM PST
Do some research folks.
Reply to this comment
Wow you're so misinformed...
by planblove February 12, 2008 7:07 AM PST
How can you be on a site like cnet and not know that blu-ray and hd-dvd BOTH upconvert older dvd's AND can run in 1080p mode? Seriously hd-dvd is a dying format, so what? If you heavily invested in hd dvd, shame on you for not doing your homework on this format war.
Reply to this comment
What research would you suggest?
by Gorifyny February 12, 2008 8:29 AM PST
Had Toshiba played its cards right and retained Warner Bros., it's very possible that Blu would have lost this competition. I don't think any amount of research would have given a definitive answer as to the winner. The only logical response to any research would have been to stay out of HD altogether. Would you be so sanguine had Blu lost the war? I will continue to enjoy my many HD DVD movies for many years, along with my many Blu-ray movies, as I chose to avail myself of every opportunity to view any available movie in HD.
View reply
Best Buy To Recommend Blu-Ray
by sommer182 February 12, 2008 7:35 AM PST
Has anyone else seen this tidbit? MSNBC.com is reporting that Best Buy, while still carrying HD-DVD equipment and movies, will begine to recommend to their customers Blu-Ray as the better choice. Their retail displays will 100% tilt towards Blu-Ray. While I love my $99.00 HD-A2 and the ten movies I know own for it, this is another big nail in the HD-DVD consumer format. Maybe it will live on as a PC data storage drive format, I hope. I can honestly say the only Blu-Ray I will ever consider purchasing is a PS3, that can play my PS2 games, for less than $250.00.

The war is nearly over, only a few skirmishes remain. Toshiba had better hardware, but as in all wars it comes down to the people behind the equipment, and Sony was better at manipulating retail and consumers alike.
Reply to this comment
HD DVD, it looks like the end is near
by jkjokeman February 12, 2008 8:32 AM PST
Well, i have my hammer and nails out :-(
Jeremy lesser HD DVD players mean lesser free copies of King Kong lol~~~~
Reply to this comment
Not buying Blue Ray
by jev55 February 12, 2008 9:17 AM PST
I think the poster telling people that "they will buy a Blue Ray player" is being
slightly over dramatic. I still have family and friends that haven't yet
purchased a DVD player. I purchased an HD DVD player from Walmart before
Christmas when they were on sale for $99 and I'm very happy with it. I think it
makes an excellent upconverting DVD player at the least. I also think that
with Netflix set top boxes, Vudu boxes, Xbox Live, and the Apple TV also
offering HD downloads there may be good reason to just skip Blue Ray
altogether. I own an Xbox 360 and I think that the downloaded movies look
great and are a reasonable price. Also it only takes about 5 or 10 minutes
after starting to download the movie for it to be able to play. So please Sony
fanboys, stop acting like you own the world just because your format is
coming out ahead.
Reply to this comment
Sony fanboys?
by Wes#1 February 12, 2008 11:42 AM PST
Hah! Please... Many of the majors have a Blu-ray player on the market (Denon, Pioneer, Samsung, etc.) so you don't have to own Sony hardware to buy into the future of HD on disc.

If you are such a fan of the stuff you listed (Netflix set top boxes, Vudu boxes, Xbox Live, Xbox 360, and the Apple TV), then why on earth did YOU buy a hard-media HD format (your HD DVD player)? Just had 99 bucks to throw away?
HUGE difference between blu-ray and HD downloads
by BCF1968 February 12, 2008 1:25 PM PST
First of all HD downloads from Xbox Live and itunes are 720p not 1080p like blu-ray and HD-DVD.

Secondly the bitrates from HD downloads are paltry compared to either blu-ray or HD-DVD. blu-ray has a 49 Mbps bitrate, HD-DVD has a 28 Mbps bitrate. XBL HD download 6 Mbps bitrate. Itunes HD download 4 Mbps bitrate. Even regular DVD has a bitrate of 8 Mbps.

I'm glad you don't mind waiting 10 minutes to watch your movie some of us would like not to wait so long.

Thirdly they are RENTALS. If you want to OWN HD movies you can't do that on XBL or Itunes.

Lastly as long as 50% of the county has no internet or dial-up physical media is going to be needed.
Not news...
by stuntman_mike February 12, 2008 9:36 AM PST
Most people believed that Blu-ray would win almost since the war started. What research could you have done? Well let's start with sales research. BD was outselling HD-DVD by an average of a 3:1 margin in the States. The average margin was even higher outside of the US.

Sony owns a Movie studio. A pretty major one at that. That is at least one studio that would never go to HD-DVD until well after HD-DVD won the war. The other movie studios were fair game. BD always had more studio support even when they lost Paramount. Paramount's deal is only exclusive for a certain period of time. With BD still outselling HD-DVD, how likely do you think it is that Paramount would have re-upped with HD-DVD at the end of the year? Not very.

Movie professionals have pledged their support to Blu-ray from the beginning. Whether you think BD's storage capacity is not really an advantage or not is debatable, but the people who make the movies seemed enamored with it.

Lastly you have the PS3. When you have HD-DVD and BD fighting it out to sell stand alone players, any intelligent person should have seen that the PS3 would be a huge advantage to the BD camp. You have a game console that is coming form THE game console company. That sold close to 200 million PS2's. PS2 was a huge factor in early adoption of standard DVDs. I know that it was my first DVD player and it was many others as well. Even if the PS3 doesn't have the success of the PS2, how could you not think that it would not be a huge advantage of getting BD players out there to a large group of people who may not have even bought a BD player now or ever? They say to themselves, hey I can play BDs. Maybe I'll pick some up and see what it's all about.

And yes the XBox 360 has an HD-DVD add on, but spending another $200 on it makes it more expensive than the PS3 when it was at its most expensive. It also involves finding room for a rather large component, whereas the PS3 and it's BD player are integrated into one tower.

Anyone who didn't realistically think that we would eventually get to this point is either in denial, or wasn't thinking clearly.
Reply to this comment
Bad Thinking on the Part of Netflix
by Renegade Knight February 12, 2008 11:11 AM PST
What matters to NetFlix is what their customers demand. If they all buy HD-DVD all the studios in the world won't save blue ray. The Studies like Netflix will follow their customers. All they are doing now is trying to push them in a direction they like. Odds are they will get lucky, but you never know.
Reply to this comment
TOO PERSONAL (May The Best Medium Win!)
by kevkeisha February 12, 2008 12:54 PM PST
I can't believe how personal people get about companies that most of you can't even afford to buy stocks in! (LMAO) Personally I don't give a damn (I have both formats in my HTPC), but the fact is, even though HD-DVD got out of the gate faster with tighter features, Blu-Ray has always had the better specs. I don't think either will be as successful as standard DVDs. With affordable broadband speeds increasing exponentially (FiOS:15-30Mbps, Cablevision:15Mbps (standard!) & 30Mbps $14 more), it's only a matter of time before companies like Microsoft, Apple, TiVo and perhaps even Netflix start offering enough downloadable or streaming content in HD (1080i or 1080p) to rival the catalogues of newer formats such as Blu-Ray. I think this will happen sooner that people think. I mean there are eve Hi-Def televisions coming to the market with hard drives built in.
Reply to this comment
Not buying any blue-ray player soon
by krustykanuck February 12, 2008 12:54 PM PST
I have my HD-DVD player that I got on sale at Black Friday for $130.00 and it works very well thank you. Unlike the buggy Blu-Ray players that are currently on the market (see the article on the lawsuit on Samsung by the Blue-Ray adopters). The machine paid for itself when I got about 7 movies with the unit (since these films cost about $20~30 a pop). Most of the Blu-Ray players are PS3's at the moment (and the only unit capable of upgrading to the newer standards - again see recent articles). Even if HD-DVD were to die out as a format I will still have my small movie collection for Hi-Def - and with price drops on actual HD-DVDs I may acquire a few more discs. If I were to buy a Blue-Ray player now it would obsolete likely within a year with all of the new content and Blu-Ray formats coming out. However, if Netflix doesn't want my business anytime soon that is their problem. They can do without my money at the moment.
Reply to this comment
I agree that downloads would be in the future
by krustykanuck February 12, 2008 12:56 PM PST
I agree with "kevkeisha" that the future will really be downloads and possibly even large capacity flash drives once they become cheap enough.
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