AfterDawn: Tech news

Netflix to drop HD DVD but concerned about Blu-ray prices

Written by Rich Fiscus (Google+) @ 11 Feb 2008 11:29 User comments (38)

Netflix to drop HD DVD but concerned about Blu-ray prices According to the Associated Press, internet DVD rental leader Netflix has decided to jump on the Blu-ray bandwagon, and will be dropping HD DVD rentals completely.
"From the Netflix perspective, focusing on one format will enable us to create the best experience for subscribers," said a company spokesman, adding that not many customers seem interested in either format yet.

According to Netlix CFO Barry McCarthy, even if you're a Blu-ray fan, the format's "victory" against the rival HD DVD format may not be the good news you were hoping for. Last week he indicated that the company is watching prices closely, saying If a winner emerges and we experience some margin Compression if a large number of subscribers rent in high-def, well weigh the options of increasing prices.

While Blu-ray backers have announced their victory, and HD DVD sponsors indignantly declare that the rumors of the format's death have been exaggerated, perhaps the real question we should be asking is whether the entire "format war" will yield a product that consumers actually want. Or will the entire experience be a lesson in corporate arrogance.

If, as generally expected, Blu-ray does become the dominant format, the expectations from studios are only going to increase. After watching the CD industry throw the music industry into a sort of tailspin, and online distribution slowly becoming a reality, they're likely to demand nearly immediate growth if standard DVD revenue continues its downward trend.

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38 user comments

111.2.2008 13:32
jrosado5
Inactive

Just freaking retarded Netflix. With more than a million HD DVD players out there and more being sold on a daily basis with the new low prices, there is no doubt that there is an HD DVD customer base! You just don't want to take care of your HD DVD customers and instead are drinking the Blu-Ray Kool Aid. How much did Sony pay you? They paid Warner $500 million for their support and I am sure they bought you off as well.

"From the Netflix perspective, focusing on one format will enable us to create the best experience for subscribers,"

Total Bull$hit! The best experience is to take care of your HD DVD customers and not being a Sony prostitute!

211.2.2008 13:40

Noooo say this isn't true just a few months back after blockbusters drop HD-DVD in there brick & mortar stores to back Blu-Ray.Netflix said they had more customers renting HD-DVD than Blu-Ray i guess all that was a bunch of FUD.


Originally posted by jrosado5:
Total Bull$hit! The best experience is to take care of your HD DVD customers and not being a Sony prostitute!
You can still get a Blu-Ray player now for 300 bucks you should have seen this coming with all the announcement that company's going BD exclusive.
This message has been edited since its posting. Latest edit was made on 11 Feb 2008 @ 13:50

311.2.2008 13:51
oappi
Inactive

lol

some ppl just go nuts over anything... When you bought hd-dvd player or blu-ray while there was no clear winner you knew the risk of getting next gen betamax. Get over it. Bd just has more movies ppl want to watch. Simple as that. Who cares about disc as normal media now. We got usb memmory sticks which are faster and more reliable.So if movies are on bd camp it bye bye for hd-dvd.

i for one was quite sure there will be looser and thought that it is most likely hd-dvd since sony has movie studio and playstation. So they had to scr*w up badly not to win. For a while i thought they did that (denied porn for short perioid of time). Also there was not enought space for beta and vhs on their time. It just seems that industry wants to have one standard.

411.2.2008 13:54
OhCrap
Inactive

Another nail in the coffin.

511.2.2008 14:02
nobrainer
Inactive

Quote:
"From the Netflix perspective, focusing on one format will enable us to create the best experience for subscribers," said a company spokesman, adding that not many customers seem interested in either format yet.
and they say the war was won by public demand for blu-ray, lol the rhetoric from the MPAA to push their, anti consumer, propertarian DRM blu-ray format of choice is funny!

dvd's are far cheaper & its easy to copy and protect your investment and by far the best choice until a consumer friendly download site is available. as atm there is none, Me Hearties!

even Sony's own top dog Phil Harrison stated that it would be very unlikely that the ps4 would have an optical drive because of the move towards online distribution, blu-ray/hd-dvd waste of money!

http://www.1up.com/do/newsStory?cId=3152746

Originally posted by above link:
Phil Harrison told Wired that he would be "amazed if the PS4 has a physical disk drive." In fairness, Harrison was talking about the emergence of electronic distribution (something Sony's mastermind Ken Kutaragi has championed previously), but that doesn't change the back-handed slap to the Blu-ray format.


if you remove blu-ray regional coding the BD+ DRM disables your player, if this isn't the best global price fixing DRM ever conceived i'd eat my hat, but it does also have the ability to authorise a disc on a server like pc software and steam so one day soon we may see a film locked to one DRM player or 1 IP address like sony's download warhawk eula that states you are not allowed to lend, sell on or even give it away.
This message has been edited since its posting. Latest edit was made on 11 Feb 2008 @ 14:16

611.2.2008 14:21

GOD .. HD DVD will you just die already

711.2.2008 14:24
goodswipe
Inactive

Originally posted by oappi:

So they had to scr*w up badly not to win. For a while i thought they did that (denied porn for short perioid of time).
I don't think the porn companies ever played a role in determining this new format war. This situation can not be compared to the Betamax vs VHS days, due to the internet now. Customers are far better off d/l their porn then paying these absurdly high prices for Blu-ray/HD DVD media. One month porn subscription goes for let's say, errr...29.99 a month. One Blu-ray/HD DVD porn vid, 49.99. LMFAO, you make the decision.

Sad to see Netflix giving the HD DVD camp a Mike Tyson uppercut.

811.2.2008 14:34

Quote:
Sad to see Netflix giving the HD DVD camp a Mike Tyson uppercut
Or the Mike Tyson ear nibble.


911.2.2008 14:40

wont be using netflix anytime soon I guess.

1011.2.2008 15:10
OhCrap
Inactive

Quote:
if you remove blu-ray regional coding the BD+ DRM disables your player, if this isn't the best global price fixing DRM ever conceived i'd eat my hat, but it does also have the ability to authorise a disc on a server like pc software and steam so one day soon we may see a film locked to one DRM player or 1 IP address like sony's download warhawk eula that states you are not allowed to lend, sell on or even give it away.
You act as if these companies should give you all the rights to these products when you purchase them. Of course they only want them to be played in certain regions and to include encryption so they can't be easily copied by the average joe. Don't forget about how unlocking your iPhone and then updating the firmware would supposedly turn it into a brick.

As for warhawk, that only applies for the version that is downladable from the psn store not the disk version that you can rent from gamefly or buy used at any ebgames. Majority of people that copy dvd's use the excuse that they only copy them so that they have a backup in case something happens to the original or so they don't damage the original. In the case of warhawk you can always redownload it if needed, since it is tied to your psn account. You act as if they should just give things away and freely allow people to redistribute their products. Original DVD doesn't even allow that.

You sound just like freaking HughJars.

1111.2.2008 15:38

Where does this get Netflix, besides in the toilet with the hundreds of thousands to millions of HD DVD owners, and in bed with Sony and its DRM pushing friends?

Quote:
"From the Netflix perspective, focusing on one format will enable us to create the best experience for subscribers," said a company spokesman, adding that not many customers seem interested in either format yet.
Wait just a minute, I could see them dropping HD DVD (or Blu-Ray) if customers strongly favored one format over the other but according to the quote currently customers don't have much interest in either format.

Also, with this quote:
Quote:
If a winner emerges and we experience some margin Compression if a large number of subscribers rent in high-def, well weigh the options of increasing prices.
That would mean that if they don't pick up HD DVD again, in the future Blu-Ray fanboys could be paying a decent premium for their content via Netflix.

Peace

1211.2.2008 15:38
atomicxl
Inactive

Does this mean that I won't be able to rent Transformers anymore? I think they should wait until a clear winner before they totally trash HD-DVD. So any film thats a HD-DVD exclusive won't be on Netflix? Thats sucks.

This whole format war is a joke. I can see studios deciding a format since they make movies. I feel like I should get a 25% discount next month when American Gangster comes out and won't be available in HD because netflix dropped HD-DVD.

1311.2.2008 15:46
goodswipe
Inactive

Like I've said before, this whole format war was never based on customer choice, rather by deals that were negotiated before the formats were released or there after...

1411.2.2008 16:03

Originally posted by jrosado5:
Just freaking retarded Netflix. With more than a million HD DVD players out there and more being sold on a daily basis with the new low prices, there is no doubt that there is an HD DVD customer base! You just don't want to take care of your HD DVD customers and instead are drinking the Blu-Ray Kool Aid. How much did Sony pay you? They paid Warner $500 million for their support and I am sure they bought you off as well.

"From the Netflix perspective, focusing on one format will enable us to create the best experience for subscribers,"

Total Bull$hit! The best experience is to take care of your HD DVD customers and not being a Sony prostitute!
Really? WB got paid $500 million just to be BD exclusive? Wow, is Sony stupid? $500 million is a lot of bones... Oh wait, is this some bullsh!t from some hd-dvd fan club?

1511.2.2008 16:09

Quote:
Quote:
if you remove blu-ray regional coding the BD+ DRM disables your player, if this isn't the best global price fixing DRM ever conceived i'd eat my hat, but it does also have the ability to authorise a disc on a server like pc software and steam so one day soon we may see a film locked to one DRM player or 1 IP address like sony's download warhawk eula that states you are not allowed to lend, sell on or even give it away.
You act as if these companies should give you all the rights to these products when you purchase them. Of course they only want them to be played in certain regions and to include encryption so they can't be easily copied by the average joe. Don't forget about how unlocking your iPhone and then updating the firmware would supposedly turn it into a brick.

As for warhawk, that only applies for the version that is downladable from the psn store not the disk version that you can rent from gamefly or buy used at any ebgames. Majority of people that copy dvd's use the excuse that they only copy them so that they have a backup in case something happens to the original or so they don't damage the original. In the case of warhawk you can always redownload it if needed, since it is tied to your psn account. You act as if they should just give things away and freely allow people to redistribute their products. Original DVD doesn't even allow that.

You sound just like freaking HughJars.
Dude, couldn't agree more... I understand people want to backup everything they own, but you know what? There are far more things in life you just can't backup, so if you can't do it easily, stop complaining and move to another thing on your to do list.

1611.2.2008 16:27

It gets worse for HD DVD.

Best Buy to Recommend Blu-ray as the Customer's Digital Format Choice

http://www.streetinsider.com/Press+Relea...ce/3345206.html
http://www.highdefdigest.com/news/show/I...ver_HD_DVD/1455

Quote:
Beginning in early March, the leading consumer electronics retailer will prominently showcase Blu-ray hardware and software products in its Best Buy retail and online channels in the United States.

According to the President and COO of Best Buy Brian Dunn:

Quote:
"Consumers have told us that they want us to help lead the way. We've listened to our customers, and we are responding. Best Buy will recommend Blu-ray as the preferred format,"

"Our decision to shine a spotlight on Blu-ray Disc players and other Blu-ray products is a strong signal to our customers that we believe Blu-ray is the right format choice for them."

This message has been edited since its posting. Latest edit was made on 11 Feb 2008 @ 16:28

1711.2.2008 16:33

Originally posted by OhCrap:
As for warhawk, that only applies for the version that is downladable from the psn store not the disk version that you can rent from gamefly or buy used at any ebgames. Majority of people that copy dvd's use the excuse that they only copy them so that they have a backup in case something happens to the original or so they don't damage the original. In the case of warhawk you can always redownload it if needed, since it is tied to your psn account. You act as if they should just give things away and freely allow people to redistribute their products. Original DVD doesn't even allow that.

You sound just like freaking HughJars.
Bingo my friend you get brownie points for that.Blu-Ray has solve all these so called issue people was having & got to backup there disc.I guess this don't have anything to do with why DVD sells are at all time low.
This message has been edited since its posting. Latest edit was made on 11 Feb 2008 @ 16:35

1811.2.2008 16:40
jagstilv
Inactive

Quote:
Quote:
if you remove blu-ray regional coding the BD+ DRM disables your player, if this isn't the best global price fixing DRM ever conceived i'd eat my hat, but it does also have the ability to authorise a disc on a server like pc software and steam so one day soon we may see a film locked to one DRM player or 1 IP address like sony's download warhawk eula that states you are not allowed to lend, sell on or even give it away.
You act as if these companies should give you all the rights to these products when you purchase them. Of course they only want them to be played in certain regions and to include encryption so they can't be easily copied by the average joe. Don't forget about how unlocking your iPhone and then updating the firmware would supposedly turn it into a brick.

As for warhawk, that only applies for the version that is downladable from the psn store not the disk version that you can rent from gamefly or buy used at any ebgames. Majority of people that copy dvd's use the excuse that they only copy them so that they have a backup in case something happens to the original or so they don't damage the original. In the case of warhawk you can always redownload it if needed, since it is tied to your psn account. You act as if they should just give things away and freely allow people to redistribute their products. Original DVD doesn't even allow that.

You sound just like freaking HughJars.
Thank you for pointing that out about Warhawk. I doubt [i]nobrainer[i] owns or has played Warhawk, but yet here he is knocking Sony. I own a PS3 and paid for the downloadable version of Warhawk. I have no complaints on a great game that mind you cost $20 less than the retail disc copy. I'm still not sure why he's complaining about DRM -doesn't the much beloved HD-DVD feature AACS or some other DRM tool? Judging from nobrainer's signature bar I guess we shouldn't expect anything different on any news regarding Sony.

1911.2.2008 17:06

Originally posted by atomicxl:
Does this mean that I won't be able to rent Transformers anymore?
I'm sure Netflix will still offer Transformers on standard definition DVD. So, at least you can still use your HD DVD player to up-convert it.

2011.2.2008 19:28

More bad news for HD-DVD.

It there any HD-DVD fans out there that really think it can be turned around at this point?

2111.2.2008 20:01

well i do have a bit of good news. i just saw a tv ad that said circuit city is running a sale on standard dvd movies. -- 3.99 a piece. now thats sweet. im not sure how good the selection is, but im definitley going to check it out. now back to the topic. until br plyers drop in price i dont see it (blueray) catching on. no one i know is going to pay $300.00+ for a dvd player. i hope somone in the blu-ray camp realizes that by christmas this year. i bought a hd-dvd player last nov. for $98.00, and i dont regret it one bit. there is still a great selection of movies for the time being, but by the end of this year ill be looking for a good price on a blu-ray player. i just hope im not disappointed.

2211.2.2008 23:33

Quote:
i bought a hd-dvd player last nov. for $98.00, and i dont regret it one bit. there is still a great selection of movies for the time being, but by the end of this year ill be looking for a good price on a blu-ray player. i just hope im not disappointed
For the time being you'll see HD DVD still for sale at most electronics/media stores that have carried the format. Warner is still going to release movies on both formats until May 2008 so you'll still see some great movies such as I Am Legend etc. out on HD DVD, so at least until mid-2008 you won't be disappointed with your $98 purchase.

Peace

2311.2.2008 23:44
jony218
Inactive

I only rent standard dvd from netflix(like the majority of users) If they start raising prices to SUBSIDIZE the high cost of blu-ray, I know I will cancel my subscription before the month is out. This could be the end of netflix as a major player and it might revert to a niche blu-ray mail rental service.

2412.2.2008 1:32

Originally posted by jony218:
I only rent standard dvd from netflix(like the majority of users) If they start raising prices to SUBSIDIZE the high cost of blu-ray, I know I will cancel my subscription before the month is out. This could be the end of netflix as a major player and it might revert to a niche blu-ray mail rental service.
How do you figure that? Seriously. They're buying BD because that's what people want. It's not like they're buying all their stock in next gen formats. If Netflix goes up just because of the BD format, I'll unsubscribe, but until then, your theory is invalid.

2512.2.2008 2:33

Well i am bummed & irritated & relived, I am bummed cause i just told netflix to send me hd dvd when avail & was looking forward to getting some rentals in hd to watch. irritated cause netflix just said they had more hd dvd rentals than bluray. relived cause i do a lot of "borrowing" after returning & i dont have a way to rip hd dvd's!

2612.2.2008 7:00

A lot off folks keep throwing in the fact that HD player/movie prices are going down yadi yadi yada. But whats the point if their becoming extinct?
It will eventually be like buying VHS players/movies at a bargain price when really no one uses it.

2712.2.2008 9:01
hughjars
Inactive

HD DVD isn't dying for anyone.

Everyone I have spoken to about Netflix says that for HD DVDs they are incredibly slow, likely to deliver damaged discs
(there are tales of PS3/Blu-ray idiots deliberately damaging discs, I wouldn't put it past them)
and have poor selections.

Big deal.

They are hardly the only HD DVD rental outlet.

The only question here is how much were they paid off?

(you don't deliberately stand & look like a bunch of bought liars by going from saying, only a couple of months back, that the vast bulk of your custom is HD DVD to this without a good - folding green - reason)

2812.2.2008 10:45
goodswipe
Inactive

I wonder what they will be doing with all their HD DVD stock? I'd like to pick up a few titles if they will be marking down their prices.

2912.2.2008 10:56

Originally posted by goodswipe:
I wonder what they will be doing with all their HD DVD stock? I'd like to pick up a few titles if they will be marking down their prices.
Like I said in the other thread:

I wouldn't pick up anything with a scratch. My last 9 or 10 HD DVD rentals from them had varying degrees of scratching and smudging. Each and every one of them had moderate to severe skipping and stuttering problems and at least 2 were unplayable at some point.

This is the problem when you don't have the extra layer of hard coating like BD. Due to the nature of the data layer a small scratch can result in big playback problems.

3012.2.2008 11:41

Originally posted by hughjars:
there are tales of PS3/Blu-ray idiots deliberately damaging discs, I wouldn't put it past them
Is that really what you think? If that is really your perspective then I have a clearer understanding of the person behind your posts now. I couldn't even imagine someone doing that. That sounds like the behavior of a 5 year old.

eatsushi is right, Blu-ray has a hard coating which should be mandatory on both formats for such data dense optical media. When you touch a Blu-ray disc it feels different. The coating is a definite advancement that co-exists well with the new media format.

nobrainer, your post about the PS4. That's digging deep, isn't it? The PS3 is still in diapers! I mean come on, do you just look for ways to make anything Sony does sound obsolete? I also believe that the distribution model will change and I have said that a number of times on various threads here. However, we are living in the present and companies still need to maximise business and profits with todays market. After all, that's what we are really talking about here, isn't it? Blu-ray and HD-DVD today and the near future... Not in 6 - 8 years when the PS4 is released!

In regards to some talking about Sony paying for support here and there. It's all business! If anyone here is business minded, it's not rocket science to figure out that endorsements, advertising, business strategy, customers etc. are what make any business successful. It really doesn't matter how you get those as long as they are within legal boundaries. I'm sorry to say this but it seems that Sony have formulated just the right mix this time round.
This message has been edited since its posting. Latest edit was made on 12 Feb 2008 @ 11:42

"Great minds discuss ideas... Average minds discuss events... Small minds discuss people"

PS3 compatible video creation thread... mkv2vob, tsMuxeR etc.: http://forums.afterdawn.com/thread_view.cfm/621809
The complete HD (Blu-ray/HD-DVD) back-up thread.: http://forums.afterdawn.com/thread_view.cfm/639346

3112.2.2008 13:30
OhCrap
Inactive

Originally posted by hughjars:
HD DVD isn't dying for anyone.

Everyone I have spoken to about Netflix says that for HD DVDs they are incredibly slow, likely to deliver damaged discs
(there are tales of PS3/Blu-ray idiots deliberately damaging discs, I wouldn't put it past them)
and have poor selections.

Big deal.

They are hardly the only HD DVD rental outlet.

The only question here is how much were they paid off?

(you don't deliberately stand & look like a bunch of bought liars by going from saying, only a couple of months back, that the vast bulk of your custom is HD DVD to this without a good - folding green - reason)
Jesus Christ! Are you kidding me? You truly are in your own little world. Disks are damaged and lost all of the time with these mail services and they just replace them. Duh! But no. Now bluray fanboys are destroying the competition, litterally.

3212.2.2008 13:44
hughjars
Inactive

Originally posted by OhCrap:
Are you kidding me?

-No I've seen it mentioned.

Originally posted by OhCrap:
You truly are in your own little world.
- ....and it looks like you clearly underestimate the fanboy element that has gathered around PS3/Blu-ray.

3312.2.2008 14:24

Hughjars

Dude, i use to respect your numbers behind hd-dvd posts, but now, you're so far far away in your little world that your posts got no dignities...

You once told me, who the hell use forums for their electronic purchase decisions. Well, lurkers like me usually read here and there, get all the info he/she can. There were few posts, you made some good points, but now, you just called yourself a liar... How the heck i suppose to take a poster's posts seriously if he/she basically said "you use my sh!t to make a HD-DVD purchase? what a joke..."

Now, you said BD fanboys deliberately destory HD-DVD discs just to trash the competition. Well, not only it's a desperate argument out of the blue, but it seems that you're ignoring the fact that HD-DVD discs are not coated like BD discs! You know, the reverse can be said too, HD-DVD fanboys try to trash the competition by destorying BDs. Oh wait, only that they need to scratch harder...

Okay, you can stop with your Sony buy this and buy that too. Are you born yesterday? Read what other users said, it's a real world dude, if you got money you buy your way! Hey, MS can do the same you know, it's not like it got no money. Just that they want to buy Yahoo right now...

Look, if you pay me some serious money, hell, i'll be your friend on this forum too, i'll spread what an awesome guy you're. Hell, i even throw in my friends and relatives. Bottom line, dude, you longer got my respect, now go sink to the bottom with HD-DVD, at least die with some dignities...


Peace!

3412.2.2008 15:26
hughjars
Inactive

Originally posted by Gnawnivek:
You once told me, who the hell use forums for their electronic purchase decisions.
- Actually what I said was who the hell in their right mind would expect anyone to believe that they use the info from one source in one forum to base their big ticket buying decisions on.

I still say the very idea is laughable
(or at least it ought to be to anyone with a shred of sense & balance in their minds).

I guess I'll just have to find a way to soldier on without your respect tho.
We all have our crosses to bear, eh.

Oh the pain, the pain......

FFS wake up, tune in & try to lighten up a tad, eh?

3513.2.2008 3:46

The sad thing is that HD DVD's defenders are for the most part seeing the writing on the wall. A few, like the one above me, persist in clinging to a standard that has no future. The truth is, the content and tech companies will continue to re-shuffle the deck to get us to buy their movies over and over and over again. That's how they make money. In the meantime, we play catch-up, some of us even risk being early adopters, but that's a risk that we all take and sometimes the cards are flush, the others, fold. It takes more guts to admit that its time time to fold.

3615.2.2008 22:47

I like my regular dvd's just fine, could care less about the other.

3717.2.2008 20:19
ranthru
Inactive

the fact of the matter is that both sony and microsoft staked their claims in this new format war. they both paid for individual studio support and endorsement of their high def format. Had Microsoft included an hd player in their gaming systems - which i had three of, and none of them even worked as they were supposed to - the way sony included the high def playability in the ps3, we may still have a war, and in fact hd dvd would probably have won that war due to the 360's much earlier release. Microsoft was greedy in releasing a sub par system early, trying to fool the public into paying hundreds more for the hd player - which i believe i read in a previous post is available for 98 dollars now - instead of waiting and figuring a way to make them work properly with the hd player already included. Sony's release of the ps3 with the blu ray player included was genius. sony waited longer to put out a better quality product, consumers were fed up with microsoft's lack of quality control, and the blu ray's 5 free movie promotion with the purchase of a blu ray player, just took the wind out of HD DVD's sails, pun intended. i couldn't tell which way the war was going to go, but after my fiasco with the xbox 360 and microsoft's lack of customer service, i could see blu ray was eventually going to win. Now others may think downloading movies is the future and blu ray is a waste of time and money, blah, blah, blah. . . they need to understand that not everyone is a computer tech, or even computer saavy enough to WANT to download and stream and burn, blah, blah, blah. there are people in the world who don't mind buying and watching movies, we aferdawn.com users are a minority. Who knows what will happen, perhaps with the elimination of competition, the price of blu ray movies and players is going to come down. i know it will over time, much as dvd format discs and players had. Until then, i'm sure someone is working on ripping and burning blu ray discs, trying to level the playing fields.

387.4.2008 5:56

ok soo this is another one to jump on the blu-ray bandwagon.

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