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Netflix chooses Blu-Ray, dropping HD DVD from Rentals.

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Old 02-11-08 | 12:41 PM
  #76  
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If there is any hope, its NetFlix's press release which argues for more affordable Blu Ray players.

If they have been in contact with the BDA over this move (i.e. incentives) it seems to me they might have been given the heads up there are more affordable units coming down the line.
Old 02-11-08 | 12:44 PM
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Originally Posted by Adam Tyner
Really, though, general consumer misunderstanding of what "HD DVD" is and the abuse the discs seem to take, judging by the forums I read, could both be pushing them towards going Blu-ray exclusive. Backing just one of these formats could make this easier to market too.
That is what the companies and the HDM enthusiansts like us want to believe. The truth is that HDM isn't enough of an improvement for the average consumer and standard DVD is good enough, especially when there is any price difference.

And I still support both because I just want to watch cool movies.

Lost Season 3 in blu is absolutely astounding. I'm watching it now while I DVR the new episodes. It really pisses me off that there are so few TV shows on HDM, and the ones that come out are latest seasons instead of previous seasons as well.
Old 02-11-08 | 12:47 PM
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Originally Posted by kvrdave
That is what the companies and the HDM enthusiansts like us want to believe. The truth is that HDM isn't enough of an improvement for the average consumer and standard DVD is good enough, especially when there is any price difference.
You'll get no argument there from me on any of those points.

I'm just sayin' that it's not too hard to come up with reasons why Netflix would make this call without being 'bribed'.
Old 02-11-08 | 12:52 PM
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Originally Posted by BuckNaked2k
I think the chorus of angry phone calls directed at NetFlix due to "Very Long Wait" on many HD DVD and BD prompted an internal decision to drop one format and go balls out on t'other.
Other than the conspiracy payoff angle, this makes the most sense. Drop the format that people rent the least and use that money on more copies of films on the format that people do rent most.
Old 02-11-08 | 01:06 PM
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Originally Posted by kvrdave
Don't flame me here, but unless there was a payoff, I don't get the decision. If there is demand for HD-DVD rentals (and the fact that all in my queue have a waiting time, suggests that there is), then a payoff is the only thing that makes sense (unless they really do get a lot of dmaaged discs, which I don't believe).

If I am a rental place, I carry anything in any format that gets used. I probably carry obscure stuff just because it keeps some people around. I don't care about a format war, because I rent all formats. If neither format wins, I still win because I rent DVDs as well. If a format war keeps people from buying the media themselves (and I think it does, especially with HD-DVD), then I am a huge winner, because I have more people because I have the movies and they only have the players.

Just the way I see it.
Totally agreed.

It also doesn't make sense to me (in terms of finances) because they were rarely shipping out discs at it is. Think of how much they saved in postage over the past 6 months since their service has sucked for HD formats.
Old 02-11-08 | 01:09 PM
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Originally Posted by Michael Corvin
Other than the conspiracy payoff angle, this makes the most sense. Drop the format that people rent the least and use that money on more copies of films on the format that people do rent most.
Now lets hope that is what Netflix really does....I hope they buy more copies of Blu-Ray...if that is the case, then I am somewhat for this. Still a bit upsetting.
Old 02-11-08 | 01:09 PM
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Originally Posted by Michael Corvin
Other than the conspiracy payoff angle, this makes the most sense. Drop the format that people rent the least and use that money on more copies of films on the format that people do rent most.
Perhaps they are looking forward and thinking that BD winning = more money for them.

I guess if the format war comes to an end, we'll see a lot less B1G1 and other bargain deals.

Higher prices = more rentals = good for Netflix.

Also, it could be that Netflix is very happy with the durability of the BD discs. Perhaps they are proving to be better than DVDs overall and require less replacing.

More durable discs = less replacing them = good for Netflix

Overall I fail to think either would outweigh the loss of profit from folks renting HD-DVDs, but I dunno.
Old 02-11-08 | 01:19 PM
  #83  
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Originally Posted by CKMorpheus
This angers me to no end. I'll be ending my Netflix subscription as soon as one of the HD-DVDs on my list becomes N/A or a future HD-DVD that I wanna rent is unavailable.

Wasn't there a press release from them a month or two ago about how they were going to continue supporting both formats?

EDIT: Here's the video where the Vice President of NetFlix says they were to remain format exclusive:

<object type="application/x-shockwave-flash" data="http://blip.tv/scripts/flash/showplayer.swf?enablejs=true&feedurl=http%3A%2F%2Ftakesontech%2Eblip%2Etv%2Frss&file=http%3A%2F%2Fblip%2Etv%2Frss%2Fflash%2F592213&showplayerpath=http%3A%2F%2Fblip%2Etv%2Fscripts%2Fflash%2Fshowplayer%2Eswf" width="400" height="255" allowfullscreen="true" id="showplayer"><param name="movie" value="http://blip.tv/scripts/flash/showplayer.swf?enablejs=true&feedurl=http%3A%2F%2Ftakesontech%2Eblip%2Etv%2Frss&file=http%3A%2F%2Fblip%2Etv%2Frss%2Fflash%2F592213&showplayerpath=http%3A%2F%2Fblip%2Etv%2Fscripts%2Fflash%2Fshowplayer%2Eswf" /><param name="quality" value="best" /></object>

I've been a member since 1999 and for the first time ever I'm contemplating ending my subscription. Jesus, is it really too much to ask to wait until ALL HD-DVD titles are available on Blu-ray?? What's the point of eliminating the HD selection of specific titles? And here this news comes right after hearing they're considering raising the price on high-def rentals.
Old 02-11-08 | 01:21 PM
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Excellent

A move in the right direction! Now they need to increase BR stock.

Pro-B
Old 02-11-08 | 01:23 PM
  #85  
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The shitty thing will be if people start hanging on to HD DVD's from Netflix now, they will just go out of circulation that much sooner, as it appears Netflix will let their current HD DVD's ride until they are no longer usable or don't come back. It doesn't sound like they are just going to throw them away.
Old 02-11-08 | 01:45 PM
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Not very surprising news....I hope this translates into more copies of BD movies available at each DC. All movies that I have in my queue on BD are either short or long wait.
Old 02-11-08 | 01:55 PM
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Originally Posted by Chad
I've been a member since 1999 and for the first time ever I'm contemplating ending my subscription. Jesus, is it really too much to ask to wait until ALL HD-DVD titles are available on Blu-ray?? What's the point of eliminating the HD selection of specific titles? And here this news comes right after hearing they're considering raising the price on high-def rentals.
That's what bothers me about this. This just prevents everyone from renting the HD DVD-exclusive titles.

This idea that it was too confusing is just wrong. This isn't Wal-Mart or Best Buy, where people will pick up players and the wrong discs with no knowledge of what they're buying. Netflix consumers aren't stupid. When they have to check a website, manage a queue, and set up the account specifically for one or the other HDM format, they know what they're doing.

The thing is, I'm in the group that now supports BD and wants to move on with one format. However, I'm not about to dump my HD DVD player when there are still titles I can't get on BD. I would have been content to just rent the titles coming out in the next few months, but now I may end up buying them instead. Is that better for BD?
Old 02-11-08 | 02:00 PM
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By some miracle I am actually getting the We Own The Night BD shipped to me today. Maybe they bought more copies, or maybe a lot of people just don't want to see it.
Old 02-11-08 | 02:12 PM
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Originally Posted by pro-bassoonist
Excellent

A move in the right direction! Now they need to increase BR stock.

Pro-B
That is my hope as well that they do increase their BD inventory. I'm tired of both Netflix and BO having very long waits for HDM discs.
Old 02-11-08 | 02:23 PM
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Just got the email:

Originally Posted by Netflix
We're Going Blu-ray

Dear Jeff,

You're receiving this email 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
Old 02-11-08 | 02:25 PM
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Well if anyone in the Chicago area is waiting for The Invasion on BD, I just sent my copy back. Not sure you want to waste your time though...
Old 02-11-08 | 02:27 PM
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I just got the e-mail

Looks like I should sell my x-box add on player now.
Old 02-11-08 | 02:43 PM
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Maybe it's just me, but by having one format, the HD Exclusive movies will HAVE to be ported over to Blu-ray. No,not immediately, but to have HD DVD exclusives when the format is no longer is supported by a studio just doesn't make business sense. And eventually, all studios will have to support Blu-ray. Sorry, that is just the way I see it (for the record, I was hoping HD DVD to win, but that is immaterial now).

I predict that HD DVD movies will be on clearance sale in the upcoming months, thus allowing people to get them at a fraction of the cost. If these discs were cheap enough, wouldn't most people in the forum buy them rather than rent?

I actually will be one of the folks buying an HD DVD player after the sales plummet hoping to take advantage of a real cheap player that will allow me to get real cheap HD discs. Having it as an obsolete format doesn't bother me. It still plays regular DVDs fine. Then I'll get a Blu-Ray player after those prices come down.
Old 02-11-08 | 02:49 PM
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Considering they've shipped me a grand total of ONE HD DVD from my queue since November, the only effect this has on me is a greater hatred of NF. I switched to the 2 at a time this month since they can never keep my "out" list full, and now I'll probably just cancel.
Old 02-11-08 | 02:50 PM
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Well, that must mean they're going to be buying more copies of BD titles. There's no other way to interpret how getting rid of exclusive titles makes for a better selection. They mean we'll have a better selection of in-stock titles, not a better selection of titles overall.
Old 02-11-08 | 03:08 PM
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Originally Posted by Dane Marvin
Bold move by Netflix. I'm trying to figure out why it makes a difference for them to have only 1 HD format versus 2 and what their angle is. Do they stand to make more money by the existence of a single HD format? It seems like this decision would indicate as much, but I haven't been able to wrap my head around just how yet. Nonetheless, I think their decision was made because they did see that they had a role in this format war and choosing Blu-ray could expedite the end to the war. Whatever it means for them, I'm glad they did it. And seeing as how I've bought into only Blu-ray thus far and rent about 3-4 BD per week from Netflix, this decision doesn't harm me much (may result in a little longer wait for BD titles in the long run or in the HDM rental price increase that they have discussed).
Great post, and one that echoes my thoughts. I don't get what Netflix has to gain by alienating any customer. Weird.
Old 02-11-08 | 03:15 PM
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Originally Posted by kvrdave
Don't flame me here, but unless there was a payoff, I don't get the decision. If there is demand for HD-DVD rentals (and the fact that all in my queue have a waiting time, suggests that there is), then a payoff is the only thing that makes sense (unless they really do get a lot of dmaaged discs, which I don't believe).

If I am a rental place, I carry anything in any format that gets used. I probably carry obscure stuff just because it keeps some people around. I don't care about a format war, because I rent all formats. If neither format wins, I still win because I rent DVDs as well. If a format war keeps people from buying the media themselves (and I think it does, especially with HD-DVD), then I am a huge winner, because I have more people because I have the movies and they only have the players.

Just the way I see it.
Another great post. If anything, fence sitting helps the renters.
Old 02-11-08 | 03:21 PM
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Originally Posted by Qui Gon Jim
Great post, and one that echoes my thoughts. I don't get what Netflix has to gain by alienating any customer. Weird.
I have to agree. I completely understand retail stores that have limited shelf space, but you would think Netflix would continue to support both. However, this may be a sign of low HD DVD rentals. You can look at ebay and Half.com and see people dumping their HD DVD collections so maybe rentals are way down as well and it isn't worth it to continue support.
Old 02-11-08 | 03:25 PM
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I think also the fact is that far more people have issues with HD-DVD discs, myself included, when renting since they tend to be more prone to scratches which make some discs unplayable.

They are a rental company and they need discs that are durable especially with the amount of punishment they take during transit and in homes. If I was in their place, I would much rather have a format that can take long term punishment then one that cannot. It helps in terms of cost since they don't have to buy replacements as often plus they can buy more so that they can lower their per unit cost.
Old 02-11-08 | 03:27 PM
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Originally Posted by darkside
I have to agree. I completely understand retail stores that have limited shelf space, but you would think Netflix would continue to support both. However, this may be a sign of low HD DVD rentals. You can look at ebay and Half.com and see people dumping their HD DVD collections so maybe rentals are way down as well and it isn't worth it to continue support.
My only guess as to what is motivating the decision is that they perceive (rightly or wrongly) that the confusion of the format war is bad for long-term sales.

Yes, fence-sitting may win two smaller customer bases now, but if Netflix believes that the base will grow faster with one standard instead of two, wouldn't they opt for that?


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