Rich Fiscus
11 Feb 2008 11:29
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, we’ll 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.