Netflix Going Blu-Ray

[Matt Heebner]

This is an email I got today regarding Netflix....

We're Going Blu-ray  
 
 Dear Matt,

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
 

Really, really looks as if HD DVD is on the proverbial deathbed here. While I sold off my XBOX 360 HD player (thank God) a while back, I have been looking for great deals on the BR players as I am looking to buy NOW.
As a side note, I do have some HD DVD's for sale if anyone is interested. I will post in the for sale area.

[SRW1000]

I really don't understand their decision.  In August, Reed Hastings stated

"We carry all the Blu-ray titles and we carry all the HD DVD, so we're agnostic. And we think the solution in that market is to have the studios publish on both," said Hastings. "(Customer demand) is pretty evenly split between them (but it's) tiny, like a percent or something."

From my own experiences, it has taken forever to get some HD DVD releases from them (I'm still waiting for the most recent Harry Potter movie, which has been at the top of my queue for months now).  That's true for other HD DVD releases as well.  If there truly weren't demand, these titles should be showing up faster, not slower.

I don't buy the "we don't want to stock two formats" argument either.  If there were still neutral studios it would make sense, but in a few months there won't be any duel format (other than catalog) titles.  What difference does it make if they stock the BD or HD DVD version, as long as they're only stocking one.

What does seem convincing is their other recent statement:

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...

Well I've done my part.  Effective tonight I've switched to Blockbuster Online.  Same price, and HD DVD rentals.  At least for now.

The recent pro-Blu announcements don't seem consumer driven, but industry coerced.  It's too bad that consumers weren't allowed to determine the outcome of this war.

Scott

[Cheesehead Dave]

Speaking of which, Best Buy made an announcement today that effectively said that while they aren't phasing out HD DVD altogether, they'll be showcasing and recommending Blu-Ray over HD DVD.

[Bebop]

From my own experiences, it has taken forever to get some HD DVD releases from them (I'm still waiting for the most recent Harry Potter movie, which has been at the top of my queue for months now).  That's true for other HD DVD releases as well.  If there truly weren't demand, these titles should be showing up faster, not slower.


Scott

As long as you have large number of titles in your queue. You'll never get the popular titles. I got Harry Potter and Bourn on the next day of release. Yes, they both came on Wednesday.

The trick is to only have 2 or less movies in your queue. They have no choice but to send the 2 movies. I have been doing this for the past few months and I always get the new releases the next day.

[Cheesehead Dave]

(I'm still waiting for the most recent Harry Potter movie, which has been at the top of my queue for months now).

You're in luck... I just returned my copy from the weekend, so maybe you'll be next!:D

The trick is to only have 2 or less movies in your queue. They have no choice but to send the 2 movies. I have been doing this for the past few months and I always get the new releases the next day.

Would it work to open a second profile on your account and to only put the movies you really want in there? That way you don't have to keep emptying out your main queue to game the system.

If anything, hopefully the money Netflix is not spending on HD DVD can go towards stocking more copies of the Blu-Ray versions.

[picopir8]

I really don't understand their decision.  

(SNIP)

The recent pro-Blu announcements don't seem consumer driven, but industry coerced.  It's too bad that consumers weren't allowed to determine the outcome of this war.

Scott

If both formats had a strong presence, I can understand stocking both formats, but HD-DVD (media and player) sales have been dropping in comparison to Blueray.  There become a point where it is no longer viable to stock an unpopular format.

Also I think consumers did determine the outcome of the format war.  Bluray has significantly outsold HDDVD for over a year now.  I think the trend towards Bluray was the catalyst behind this decision and other pro-bluray announcements.  Granted those decisions were made by less than 1% of the total number of consumers.  The rest of us would likely be content with either format.

[brewtownska]

I disagree with emptying your Blockbuster queue to get the new movies.  I have 130+ in my queue, and what works for me is to make sure I return an envelope to the store on Saturday evening or Sunday during the day.  Just make sure the store scans it so it shows "received at store" in your online queue before Monday hits.  Since many of their new releases can legally be sent out Monday knowing you won't see it until Tuesday, this helps put you first in line to grab one of the new movies.  I don't know how often Blockbuster checks your queue to see what is your top few choices (maybe twice a day?), but I think the reason it works is because they are closed Sunday.  So first thing Monday morning they scan your queue and see you returned your previous movie(s), so you're due a new one.  Since the Tuesday releases are all in-stock Monday morning, they can send that out.

I can't say it works EVERY time, but most of the new releases get sent out to me Monday morning when I request them using this method.  And yes, I am talking Blu-ray - for the most part those are the only ones I try to get online anymore (as they have a better selection than my local store).

[leprechaunshawn]

Looks like I just found my excuse to buy a PS3.  I checked BestBuy.com and Walmart.com and it looks like the cheapest Blu-Ray player out there is about $370.  If I'm going to spend that much I may as well pay the extra $30 and get the PS3 for $400.

[SRW1000]

If both formats had a strong presence, I can understand stocking both formats, but HD-DVD (media and player) sales have been dropping in comparison to Blueray.  There become a point where it is no longer viable to stock an unpopular format.

That's the part that I'm not understanding.  If there was no demand for HD DVD titles, why aren't many of us getting them?  I had Anchorman on my list since it came out, and finally got it this weekend, but they sent me a message saying that it was being fulfilled by the Miami stocking center.  If HD DVD were not in demand, why isn't a copy available locally?  It's not like this is still a new release.

Also I think consumers did determine the outcome of the format war.  Bluray has significantly outsold HDDVD for over a year now.  I think the trend towards Bluray was the catalyst behind this decision and other pro-bluray announcements.  Granted those decisions were made by less than 1% of the total number of consumers.  The rest of us would likely be content with either format.

The less than 1% figure is what I was referring to by the consumers not making this decision.  At this point, to call the market apathetic would be an understatement.  Neither format has captured general consumer interest.  As a result, these very early numbers were determined by two groups - early adopters and PS3 owners.  Neither is representative of the market as a whole.

As far as consumers being content, that's hard to say.  HD DVDs advantages were a significantly lower hardware price point and disc replication advantages.  Both of these would have lowered overall hardware and software prices, bringing them down to DVD levels rather quickly.  While BDs have several technical advantages (which don't really translate to substantial quality differences), they also have disadvantages (missing profile 2.0 players due to the rush to market), and have higher targeted pricing.  

Their prices may fall over time, but without the competition of HD DVD it is much less likely now.

Scott

[SRW1000]

I disagree with emptying your Blockbuster queue to get the new movies.  I have 130+ in my queue, and what works for me is to make sure I return an envelope to the store on Saturday evening or Sunday during the day.  Just make sure the store scans it so it shows "received at store" in your online queue before Monday hits.  Since many of their new releases can legally be sent out Monday knowing you won't see it until Tuesday, this helps put you first in line to grab one of the new movies.

I had been doing this with Netflix for the past couple of months, and my success rate is better for DVDs, but not so much with HD DVDs.

I signed up for Blockbuster last night, and I'll be getting the HD DVD version of Zodiac this week - a movie that isn't even available on Netflix.  I'll try the Saturday return thing and see what happens with them.

Scott

[sjvillers]

I hadn't purchased either an HD-DVD player or a BluRay player yet because I was waiting to see which one won the war. Now that we know BluRay is going to win out, shouldn't we actually see a price drop in the cost of BluRay movies and equipment? All of the electronics manufacturers can now focus their R&D on BluRay and make more (and better) players, and thus the prices should come down. They will also figure out cheaper ways to mass-produce the discs and players, further driving down the costs. Within the next six months, I bet we will see the first new BluRay player for under $300. The lack of HD-DVD in the marketplace should not be considered the death of competition, but rather the beginning...

Scott V.

[SRW1000]

I hadn't purchased either an HD-DVD player or a BluRay player yet because I was waiting to see which one won the war. Now that we know BluRay is going to win out, shouldn't we actually see a price drop in the cost of BluRay movies and equipment? All of the electronics manufacturers can now focus their R&D on BluRay and make more (and better) players, and thus the prices should come down. They will also figure out cheaper ways to mass-produce the discs and players, further driving down the costs. Within the next six months, I bet we will see the first new BluRay player for under $300. The lack of HD-DVD in the marketplace should not be considered the death of competition, but rather the beginning...

Scott V.

Just because there is competition among brands selling the same commodity doesn't mean that prices will fall drastically.  There are lots of gas stations, but prices are all very similar.

Since the infrastructure of Blu-ray, from playback equipment, to the required brand new disc-manufacturing equipment, to manufacturing yields and cycle times are all higher than what HD DVD had to offer, prices will remain relatively higher for a longer time.  This is especially true without the extra competition of HD DVD.

If we do see a new BD player in six months, priced at $300, that's still more than twice the price of today's HD DVD player.

Netflix has already stated that they may be looking at higher pricing if one format becomes the winner.  BD companies have expressed concern about the lack of margins they'd be stuck with if they would have to compete with HD DVD players.

Regardless of who wins (or has already won) the war, competition has both reduced the costs of both formats, and also improved the quality.  Without it, change will be much slower.

Scott

[Bebop]

Wal-Mart is going Blu-ray only too.

http://money.cnn.com/2008/02/15/technology/wal-mart_blu-ray/index.htm?cnn=yes

[jkane]

There was a news article yesterday that said Toshiba is dropping HD-DVD.  After reading the actual quote, they didn't quite say that.  But they did say they are considering what to do next.

http://news.yahoo.com/s/nm/20080215/tc_nm/hddvd_dc;_ylt=Al9pDkJGikOPBuplKfgLmBpT.3QA