Best Buy kicks HD DVD while it's down

Already starting the week off on a bad note, HD DVD's day just keeps getting worse.

Starting next month Best Buy says it will prominently display Blu-ray players and discs in its stores and recommend the format over rival HD DVD, according to a Reuters report.

"Because we believe that Blu-ray is fast emerging as that single format, we have decided to focus on Blu-ray products," Brian Dunn, Best Buy's president and chief operating officer, said in a statement Monday.

It's not an exclusive arrangement since Best Buy says it will still continue to offer HD DVD. But having Best Buy's valuable endorsement in the form of Sunday circulars, front-and-center store kiosks, and staff recommendation seems to be the icing on the cake for a Blu-ray victory in the format war, and potentially the death rattle for HD DVD.

Earlier Monday, online movie rental service Netflix announced it would phase out its offering of HD DVD discs by the end of the year. Netflix's position likely will have less of an immediate impact on the format battle since its business depends on people who have already made a decision on which format they support. In other words, Netflix availability isn't the reason most consumers will lay down $400 for a video player.

But Best Buy is different. It's the nation's largest consumer electronics store, and in a situation where consumer education is one of the biggest battles, much of the actual fighting of the format war needs to be won at the sales level. When someone looking to upgrade to HD video goes in to a store and asks their friendly sales associate which format they recommend, the answer is going to have a serious impact.

Update, 4 PM PT: The HD DVD Promotional Group responded with a statement that's strikingly similar to the one issued earlier in the day: "We have long held the belief that HD DVD is the best format for consumers based on quality and value, and with more than 1 million HD DVD players on the market, it's unfortunate to see Netflix make the decision to only stock Blu-ray titles going forward. While the Best Buy announcement says they will recommend Blu-ray, at least they will continue to carry HD DVD and offer consumers a choice at retail."

[thenet411]

Hooray for Sony

While both BluRay and HD-DVD had basically the same spec, I am glad that Sony will probably win this one. Beta was superior to VHS in just about every single way but the forces of marketing and consumers acting like lemmings fell for the far inferior VHS.

[Sparhawk2k]

$99 Player?

Let me know when I can get a $99 BluRay player. That was the only reason I even considered HD-DVD. And only once it was combined with the free disc deals...

[GGGlen]

Hooray for capacity!

I can't begin to tell you how frustrating it was, listening to the
HD crowd yelling "So what if Blu Ray has greater capacity, no one
will ever use it".

Yeah right... Bill Gates himself said in 1981 that "No one will
ever need more than 640k of ram".

HD supporters were a bunch of Luddites, playing some weird
game of Corporate Favouritism in lieu of better tech.

HD? Good riddance.

[MrTroy03]

Wait a while

How much were VCR's when they were the top technology? $300 or more? DVD Players were over $500. That is what technology does, 2-4 years from now you can get one for a few hundred.

[jrm125]

Blu-ray the winner!

Blu-ray has this war. It's over.

Go ahead and flame me. It won't change the fact HD-DUD is doomed.

[tundraboy]

Now that the fat lady is singing. . .

Can we have a Blu-ray burner that can burn HD home movies to Blu-ray format?

[gonzofever]

HDDVD continues Defending it's Format

It's interesting how HDDVD defends itself with the same remarks every single time. Everything is "unfortunate" according to them. I also love when they mention there are over 1 million players out there. They don't mention how many more studios back Blu-ray, or how more more companies are backing blur-ray than HDDVD. But alas Toshiba might wake up one day and realize they have a dead format. It is REALIZATION that Blu-Ray is THE choice.

[rkonowal]

the other format war

Bluray still has a long way to go before being declared a winner, there is another format war to be settled, what about dvd, when will that format be deep sixed, until then blu ray sales will flatten as HD pic is only really evident on large screens so there is no reason for most people to upgrade to Bluray and the high cost of movies many dvds are going for 5 6 or 7 dollars and blurays ar $20 plus

cheap HD DVD was the best bet for wide acceptance, unless Sony drops price drastically on players and movies Blu ray could go the way of SACD and DVD Auido

[jackrambo]

Netflix IS Influential

"In other words, Netflix availability isn't the reason most consumers will lay down $400 for a video player."

I think you missed the call here, Erica. Like many, Netflix is my sole source of DVDs...I no longer would think about walking into a Blockbuster and, for me, buying DVDs is foolish. So, yes, Netflix's decision has GREAT influence over my format choice.

Conversely, I?d speculate that many of your readers do their own web-based, consumer research and take virtually everything they hear from most salespeople at Best Buy with a huge grain of salt.

[fred dunn]

I wouldn't rush out and buy a player yet...

as the two camps are still in competition so technology marches on and by the time Toshiba decides it's going to stop their will be better technology out, there already is but it just isn't being implemented for movies.

Wait until Blu-Ray has about a third to a half of the existing DVD titles and stores start indicating they are getting away from standard DVDs before you make your decision.

This from the company that backed DIVX

hmmm... considering their track record, I'll wait a bit

[HD99]

The Real Reason,,,,,

I have had both HD and Blu-Ray for several months now and would much prefer HD over Bray...the players are cheaper, fully compliant and the movie quality is just as good etc....but we all know that.

The real reason for the Blu-Ray jumpers is MONEY. How much more can BEST BUY and others make on a $500 Blu-Ray player than on a Toshiba $150 or $99 player? Blu Ray discs at $34.99 etc....

Its so sad to see so many HD folks out there that take sides on this issue, and you get screwed by the man....nice.

Both formats can survive and we all are the winners, but NO.....all the one sided zealots will bring down the house, no competition and high profit margins...

No I can go back to wacthing a BluRay movie, that s if its finished loading the movie yet....yeah its been about 10 minutes...must be ready now..

[mikeburek]

Businesses decision, BB not taking sides

It's just a business decision. The BluRay players are keeping a fairly steady price, as are BluRay discs. But if HD DVD is going to continue dropping player and movie prices every other week, then BB would need very low inventory of HD DVD so that they don't get burned when what they paid for the player/discs is higher than the consumer market price in a few weeks. If HD DVD tries to push price, then there is less markup BB can do. But they can have a higher markup on BluRay and know the price won't be falling fast, so they can stock the inventory and push it out.

[arias925]

Best Buy did not back Divx

Circuit City backed divx, Best Buy carried it reluctantly but Circuit City was one of the partners that created it.

[mikeburek]

Time to buy HD DVD

I almost never buy a DVD disc because of the crazy prices. It's just easier and cheaper to rent and I do it from Hollywood Video with their MVP program - so I get a much better deal than anything else, with the "inconvenience" of driving 5 minutes away. But the other day I saw some HD DVD discs at Fry's for about $6 for recent movies. If both formats are pretty darn close to quality, then why not get some of the movies in HD DVD now, while they are cheap. So what if you'll have to have an extra component for the HD DVDs along with the BluRay when it's price finally comes down. Well, what techie person doesn't want more components and lights and remotes?

[Aaron_Moore]

25 Companies go Blu-ray so far in 2008

It's not just Netflix and Best Buy. It's happening all over the world and with other companies in the US as well.

02-12-08 Hi-Fi Klubben (large Scandinavian retailer) goes Blu-ray exclusive.
02-11-08 Tripictures (Spain) goes Blu-ray exclusive.
02-11-08 Best Buy recommends Blu-ray
02-11-08 Netflix goes Blu-ray exclusive
02-07-08 FS Films goes Blu-ray exclusive
02-07-08 Kaleidescape goes Blu-ray exclusive
02-07-08 Saturn (Largest German electronics retailer) goes Blu-ray exclusive
02-07-08 SF Films (Sweden) goes Blu-ray Exclusive
02-07-08 Scanbox (Sweden) goes Blu-ray Exclusive
02-07-08 Filmax goes Blu-ray Exclusive
02-04-08 BAC Films (France) goes Blu-ray Exclusive
02-04-08 Manga Films goes Blu-ray Exclusive
02-01-08 ADV Films goes Blu-ray Exclusive
01-31-08 Highlight Video (Germany) goes Blu-ray Exclusive
01-30-08 National Geographic goes Blu-ray Exclusive
01-30-08 EMI (Japan) goes Blu-ray Exclusive
01-30-08 Sonic Solutions Scenarist goes Blu-ray Exclusive
01-28-08 Woolworths Retail Outlet (UK) goes Blu-ray exclusive in store.
01-22-08 Grant's Appliances to goes Blu-ray exclusive
01-16-08 Senator Entertainment goes Blu-ray exclusive.
01-16-08 Digital Playground goes Blu-ray exclusive
01-11-08 Constantin Film goes Blu-ray exclusive.
01-10-08 HBO goes Blu-ray exclusive.
01-05-08 New Line goes Blu-ray exclusive.
01-04-08 Warner goes Blu-ray exclusive.

[biffhenerson]

Format "War" is created by media

I get a kick out of this format "war" thing. It was created by the media for the media because they have nothing else to write about. Who cares which is more popular, Ford or Chevy? Who cares which format is more popular? Buy Blue-Ray, buy HD-DVD, buy 3 cell phones. Who cares? Its only money. I bought a Beta, then I bought a VHS. Big deal. By the way, ALL movies will be DRM protected and streamed in full, HDTV digital quality directly from the production companies in the near future thus I wont need any DVD's. and the production companies only have to worry about one copy. Theirs. lol.

[FLWB]

The final round count begins

Once the big box stores get in on it then the average consumers will automatically make the assumption that Sony won this time.

My question is what incentive was offered to Best Buy by Sony to come out and take this stance? Does such an offer break any fair practice rules?

[Waam]

Even Best Buy is tired of this war

DVD sales are taking a hit because people are waiting for their favorite movies to reach Hi-Def. Whether people choose to believe it or not, the trend is moving towards Hi-Def.

[iansmccarthy]

HD DVD versus Blu Ray and free competition

I hold no brief for Blu Ray or HD DVD but most people seem to be confused regarding HOW Blu Ray is winning. If Sony and Toshiba were competing fairly then we could let the market decide and let consumers work out which format they prefer but Sony owns a studio and has paid what can only be considered bribes to other studios to limit competition. HD DVDs and players are inherently cheaper to manufacture and the disks are less subject to degradation over time, because of the lower wavelength of Blu Ray. HD DVD also is zone free and less restrictive in the DRM. That seems to be sufficient to explain why some consumers would prefer HD DVD even if Blu Ray has more capacity on the disk. However the whole point is that the consumer is not being allowed to decide.