http://www.betanews.com/article/Blockbuster_to_Expand_Bluray_Retail_Titles_First_HD_DVD_May_ Wait/1182178445

For over a year now, the retail high-definition market has been looking for a signal from places on high of any tipping of the scales, any crack in the dam that will help consumers make the ultimate choice in high-definition movie format investment: Should they invest in Blu-ray or HD DVD? This morning, such a signal may have finally come: US movie rental giant Blockbuster announced that 18% of its retail outlets will expand their offerings to include Blu-ray titles only, at least for now.

For retailers like Blockbuster, the problem has been one of real estate. Blockbuster and its online competitor Netflix can continue to expand their virtual storefront to include as many Blu-ray and HD DVD titles as studios decide to produce.

But physical shelf space is a critical commodity, especially for a store that guarantees availability for certain new releases. The less space there is available for a new title in any given store, the more coupons the company must give away, which is a very real expense.

So giving up space for any new format is a big gamble. Up to now, making room for two formats has been impossible, except for a select 250 stores nationwide where Blockbuster had been sampling customer preferences. Of the company's approximately 8,000 stores in North America, fewer than 3% have the space available for both formats.

This morning, Blockbuster spokesperson Randy Hargrove declined to go into more detail than what had already been released to the press on Sunday, except to say this to BetaNews:

"When customers are ready we can expand the Blu-ray offering into more stores and add HD DVD to more locations if that's what customers tell us they want. HD DVD titles will still be available in the 250 stores (only 3% of its retail operations) that had been carrying it and HD DVD along with Blu-ray titles will still be available for rental at blockbuster.com for our Blockbuster Total Access and Blockbuster By Mail online subscribers. Our policy online is that we will continue to offer both Blu-ray and HD DVD as they are released."

But that will still be a slight inconvenience to HD DVD customers with respect to the company's Total Access program. There, customers can rent movies online, receive them by mail, and return them to retail stores, swapping them for more titles during the same rental period. Without HD DVD titles in most stores, that program won't have much value to HD DVD customers.

Whether this constitutes a real "crack in the dam" may depend on how the company's biggest competitor, Movie Gallery (which also operates Hollywood Video stores), responds. That company manages 4,700 retail outlets in North America, many of them with tighter real estate restrictions than Blockbuster. Expanding its shelf presence for so much as one high-def format, let alone two, may be an impossibility for a great many Movie Gallery outlets. At the same time, the fast-moving consumer electronics economy mandates that if a player doesn't lead and doesn't follow, it's automatically out of the way.

Regardless of what either chain decides to do from here on out, any decision to carry just one high-def format will be a gamble on which portion of the movie spectrum will be more appealing to consumers.

The Blu-ray Disc Association boasts 20th Century-Fox, Lionsgate, MGM, Paramount, Sony Pictures (which owns Columbia and Tri-Star), and Warner Bros. as its member studios; whereas the HD DVD Promotional Group lists New Line, Paramount, Universal, and Warner Bros. among its members. Even with the overlap, Blockbuster's decision may have come down to which studios could be expected to produce the most desirable titles this summer.

On the AV Science Forum this morning, the response from high-def aficionados is a very clear indication that the Blockbuster move may have made the first serious dent in the ongoing battle between the formats. Writes one member, "I'm an HD-DVD supporter and there's no way to spin this into a positive. This is good news for Blu-ray... for real!"

Another borrows a very vivid phrase from the very symbol of contemporary British literature, Monty Python. "It's not a blow," he writes. "It's just a flesh wound."

Also note the following interview with Blockbuster's COO, Nick Shepherd: http://www.cnbc.com/id/15840232?video=383736735&play=1

He does not believe that Blu-ray will necessarily win, it is too early to tell. They only went with Blu-ray initially because of the number of PS3 players in the market right now. They're looking at how it will play out in the next 12 to 18 months, and will offer HD DVD at their stores in the future as demand grows.

Why prolong the war?

So, this news is worthless to me. Good! :p

I rent via Blockbuster online. I'll continue to get my HD-DVDs there.

The only time I step into the store is when I get SD's that I can't get on HD-DVD, and that's only when I do a swap with my online rentals.

Read the article, listend to Ms Bartiromo...Nothing new. Lieberfarb looked a bit perturbed. Not a good day for him, but he did try and spin HD DVD as being the only format with internet connectivity mandated when asked by Ms Bartiromo why the studio support is non-existent. Nice dodge....Ahhh...the truth hurts. The Blockbuster COO was clear. For now it is Blu Ray and they will not stock any more stores with HD DVD. Blockbuster may reassess in a year or 18 mos but no sooner....TRANSLATED: We are done with HD DVD but we don't want to piss off our Toal Access rental patrons that own the HD DVD players...so we'll pretend to half heartedly support HD DVD.

Good finds!!

Read the article, listend to Ms Bartiromo...Nothing new. Lieberfarb looked a bit perturbed. Not a good day for him, but he did try and spin HD DVD as being the only format with internet connectivity mandated when asked by Ms Bartiromo why the studio support is non-existent. Nice dodge....Ahhh...the truth hurts. The Blockbuster COO was clear. For now it is Blu Ray and they will not stock any more stores with HD DVD. Blockbuster may reassess in a year or 18 mos but no sooner....TRANSLATED: We are done with HD DVD but we don't want to piss off our Toal Access rental patrons that own the HD DVD players...so we'll pretend to half heartedly support HD DVD.

Good finds!!

Half heartedly will work for me. ;)

"Our policy online is that we will continue to offer both Blu-ray and HD DVD as they are released."

And that says "Nothing new"? Hmm.. ;)

Like I said, only rent via online. I could care less if all their stores stocked HD-DVDs. Same could be said for the BD owners as well.

Ohh the bland, why won't you take the bad news with the good? :rolleyes: :p

Read the article, listend to Ms Bartiromo...Nothing new. Lieberfarb looked a bit perturbed. Not a good day for him, but he did try and spin HD DVD as being the only format with internet connectivity mandated when asked by Ms Bartiromo why the studio support is non-existent. Nice dodge....Ahhh...the truth hurts. The Blockbuster COO was clear. For now it is Blu Ray and they will not stock any more stores with HD DVD. Blockbuster may reassess in a year or 18 mos but no sooner....TRANSLATED: We are done with HD DVD but we don't want to piss off our Toal Access rental patrons that own the HD DVD players...so we'll pretend to half heartedly support HD DVD.

Good finds!!
I think you've misinterpreted. Blockbuster says they'll add HD DVD as consumers demand it, and they'll see how these two formats work over the next 12 to 18 months. They did not state that they would not increase HD DVD support prior to that time. Blockbuster is not "Blu-ray exclusive" by any stretch of the imagination. According to the former head of Warner Home VIdeo who was also interviewed, this is a 'non-event.'

Lloyd: What are the chances of a guy like you and a girl like me... ending up together?
Mary: Well, that's pretty difficult to say.
Lloyd: Hit me with it! I've come a long way to see you, Mary. The least you can do is level with me. What are my chances?
Mary: Not good.
Lloyd: You mean, not good like one out of a hundred?
Mary: I'd say more like one out of a million.
[pause]
Lloyd: So you're telling me there's a chance.

Keep hope alive HD-DVD fans!

Blockbuster may reassess in a year or 18 mos but no sooner....TRANSLATED: We are done with HD DVD but we don't want to piss off our Toal Access rental patrons that own the HD DVD players...so we'll pretend to half heartedly support HD DVD.

Eh? I think you might be putting words in his mouth, I certainly didn't read him the same way you did. He stated in regards to the format war in general that it should be watched to see how things play out in the next 12-18 months, didn't he? He even implied that there may be no "winner" in the war if I recall.

He also referred to the current timeframe in the format war as being a "nano-second".

This Blockbuster move isn't good PR for HD DVD by ANY means, but I think your dislike of HD DVD may have caused you to read a bit too much anti-HD DVD info into that interview...

Lloyd: What are the chances of a guy like you and a girl like me... ending up together?
Mary: Well, that's pretty difficult to say.
Lloyd: Hit me with it! I've come a long way to see you, Mary. The least you can do is level with me. What are my chances?
Mary: Not good.
Lloyd: You mean, not good like one out of a hundred?
Mary: I'd say more like one out of a million.
[pause]
Lloyd: So you're telling me there's a chance.

Keep hope alive HD-DVD fans!

Good analogy... except that "one out of a million" are the number of customers out there who give a crap about any of this. ;)

The rest of them will buy a player of either HD format when they drop down low and there's more than just a few hundred titles available.

I think you've misinterpreted. Blockbuster says they'll add HD DVD as consumers demand it, and they'll see how these two formats work over the next 12 to 18 months. They did not state that they would not increase HD DVD support prior to that time. Blockbuster is not "Blu-ray exclusive" by any stretch of the imagination. According to the former head of Warner Home VIdeo who was also interviewed, this is a 'non-event.'

non-event :rolleyes:

And who is going to demand when they have been out sold already, nobody cares about hd-dvd, or they wouldnt be in the spot they are in.

The "former head of Warner Home Video" Warren Lieberfarb is a consultant for Microsoft and HD-DVD.

non-event :rolleyes:

And who is going to demand when they have been out sold already, nobody cares about hd-dvd, or they wouldnt be in the spot they are in.
What spot? I have two local Blockbusters that rent HD DVD and will continue to rent HD DVD. There are also other video rental stores in town that rent HD DVD. The Toshiba HD DVD players are still top sellers. HD DVD is going nowhere but up. :)

or they wouldnt be in the spot they are in.

The "spot" they are in is simply this:

Very slow sales that are a virtual tie with the very slow sales of BD. Blu-ray has sold 445,000 more titles than HD DVD. That's it. I think most of these companies make more $$$ than that just through rounding errors on their balance sheets.


Neither side is winning or losing this "war"... this news was just a nice PR bump for one side. It doesn't have any last impact.

Many posters will just try to use this news to make HD DVD owners "give in" - but it is not a death blow of any sort.

BB will have to listen to their customers - otherwise it is a very foolish decision. They are saying that 30 to 40 % of their next gen customers don't matter...

Any coincidence that the Blockbuster fellow is also British? Does he hang out with Sony's Stringer? :) Unique that the Brits are setting the future direction for Hollywood, huh?

Why prolong the war?


Why pretend that this is a war?

What spot? I have two local Blockbusters that rent HD DVD and will continue to rent HD DVD. There are also other video rental stores in town that rent HD DVD. The Toshiba HD DVD players are still top sellers. HD DVD is going nowhere but up. :)

What spot-

Blockbuster has been renting both Blu-ray and HD DVD titles in 250 stores since late last year and found that consumers were choosing Blu-ray titles more than 70 percent of the time.

70% :eek:

What spot-

Blockbuster has been renting both Blu-ray and HD DVD titles in 250 stores since late last year and found that consumers were choosing Blu-ray titles more than 70 percent of the time.

70% :eek:
Though that is more than HD DVD, these are largely PS3 owners who don't have the type of games they want yet to keep them playing games instead of renting movies. HD DVD continues to outsell Blu-ray in terms of standalone players, so I expect this gap to narrow in due time. Blockbuster's COO even admitted that they'll carry HD DVD as demand increases (and the feeling I'm getting is that Blockbuster believe that demand for HD DVD will definitely increase).

70% :eek:

70% of how many rentals? The market is so small right now that the percentage likely doesn't matter much. 70% of .5% of your rental traffic is a sad number (not as sad as 30%... but still sad).

It may make sense to roll out the format that is getting higher numbers first -- I can buy that idea. But that doesn't preclude doing both (or switching) as the market grows and changes.

The COO has said as much pretty clearly. This is an "initial" move and doesn't indicate anything in terms of the format war in general. If (I'd say "when") HD DVD grows into more homes, Blockbuster will add it. But the market in general is so small right now, that rolling out two formats doesn't make sense, especially for a company like Blockbuster that is losing money and business left and right and can't afford to buy into something that may not be paying high benefits immediately.

yeah, and by "customers tell us they want hd-dvd" they mean people actually renting them in bulk, not 50 hd-dvd fanatics from the internet spamming them with petitions and e-mails. so good luck, midnightwatcher and rdjam.

The only change in the market will be Blu-ray increasing their market share.

Things are lined up against HD DVD, inferior specs, less movies, less studios, less CE companies, less sales, less of a price advatage ($500 cheaper now barely $100 cheaper), now less availability.

The list continues to grow.

Of course BB will start to stock HD DVD if there is a huge turn around, but it is getting less and less likely that it will happen, and many around here realize this. It is looking like the format war is ending in favor of Blu-ray, and many are very happy about this development.

Read the article, listend to Ms Bartiromo...Nothing new. Lieberfarb looked a bit perturbed. Not a good day for him, but he did try and spin HD DVD as being the only format with internet connectivity mandated when asked by Ms Bartiromo why the studio support is non-existent. Nice dodge....Ahhh...the truth hurts. The Blockbuster COO was clear. For now it is Blu Ray and they will not stock any more stores with HD DVD. Blockbuster may reassess in a year or 18 mos but no sooner....TRANSLATED: We are done with HD DVD but we don't want to piss off our Toal Access rental patrons that own the HD DVD players...so we'll pretend to half heartedly support HD DVD.

Good finds!!


I guess he turned this around...not the way I heard it... This whole BB thing has been twisted out of context.... Geez , its not the end of HD-DVD.....But I guess some are wishing so they change things a bit.... :D

Looks like HD-DVD damage control is in full swing, lol.

yeah, and by "customers tell us they want hd-dvd" they mean people actually renting them in bulk, not 50 hd-dvd fanatics from the internet spamming them with petitions and e-mails. so good luck, midnightwatcher and rdjam.

Exactly.

yeah, and by "customers tell us they want hd-dvd" they mean people actually renting them in bulk, not 50 hd-dvd fanatics from the internet spamming them with petitions and e-mails. so good luck, midnightwatcher and rdjam.

LOL!

yeah, and by "customers tell us they want hd-dvd" they mean people actually renting them in bulk, not 50 hd-dvd fanatics from the internet spamming them with petitions and e-mails. so good luck, midnightwatcher and rdjam.

So, BD is being rented in "bulk" ? Interesting - wonder who is doing that ;)

This morning, Blockbuster spokesperson Randy Hargrove declined to go into more detail than what had already been released to the press on Sunday, except to say this to BetaNews:

"When customers are ready we can expand the Blu-ray offering into more stores and add HD DVD to more locations if that's what customers tell us they want. HD DVD titles will still be available in the 250 stores (only 3% of its retail operations) that had been carrying it and HD DVD along with Blu-ray titles will still be available for rental at blockbuster.com for our Blockbuster Total Access and Blockbuster By Mail online subscribers. Our policy online is that we will continue to offer both Blu-ray and HD DVD as they are released."

But that will still be a slight inconvenience to HD DVD customers with respect to the company's Total Access program. There, customers can rent movies online, receive them by mail, and return them to retail stores, swapping them for more titles during the same rental period. Without HD DVD titles in most stores, that program won't have much value to HD DVD customers.

I currently only use Netflix for HD-DVD rentals since the nearest Blockbuster that has HD-DVD in-store is 10 miles away. I was waiting for the closest Blockbuster (2 within 2 miles) to start stocking HD-DVDs. This was the "added value" that I wanted before switching from Nextflix.

So, how do we as potential customers tell Blockbuster that we want HD-DVDs in-store? Can this be done for specific locations? How will they determine which stores to stock HD-DVDs in the future? Does it depend on the zip codes of online customers who rent HD-DVDs? If this is the case, does it then mean that they will only accept HD-DVD requests from current customers? Any insights?

My $0.02.
alinski...

I think you've misinterpreted. Blockbuster says they'll add HD DVD as consumers demand it, and they'll see how these two formats work over the next 12 to 18 months. They did not state that they would not increase HD DVD support prior to that time. Blockbuster is not "Blu-ray exclusive" by any stretch of the imagination. According to the former head of Warner Home VIdeo who was also interviewed, this is a 'non-event.'

How are consumers going to demand it if isn't in the stores in the first place?

Many posters will just try to use this news to make HD DVD owners "give in" - but it is not a death blow of any sort.

BB will have to listen to their customers - otherwise it is a very foolish decision. They are saying that 30 to 40 % of their next gen customers don't matter...

Any coincidence that the Blockbuster fellow is also British? Does he hang out with Sony's Stringer? :) Unique that the Brits are setting the future direction for Hollywood, huh?

Actually, the press release stated OVER 70% chose blu-ray. You guys are in the 2X range.

Blockbuster's COO even admitted that they'll carry HD DVD as demand increases (and the feeling I'm getting is that Blockbuster believe that demand for HD DVD will definitely increase).

It only matters if it increases faster than BD.

Currently it is 70:30 and that does not seem to be enough for HD DVD to be supported. It will need to be more than that to make them change their mind.

Shelf space is not free. Putting something with a low market share on their shelves is a waste of their time and money.

So it is not demand that has to increase - it is market share.

I think you've misinterpreted. Blockbuster says they'll add HD DVD as consumers demand it, and they'll see how these two formats work over the next 12 to 18 months. They did not state that they would not increase HD DVD support prior to that time. Blockbuster is not "Blu-ray exclusive" by any stretch of the imagination. According to the former head of Warner Home VIdeo who was also interviewed, this is a 'non-event.'
But as the Nielsen numbers show with Blu-ray selling more discs than HD DVD every week since December 24th, 2006 (EVERY WEEK) the consumers ARE NOT demanding it.

Look at the YTD title selling numbers - it's 68% market for Blu-ray. The consumers have spoken.

Many posters will just try to use this news to make HD DVD owners "give in" - but it is not a death blow of any sort.

BB will have to listen to their customers - otherwise it is a very foolish decision. They are saying that 30 to 40 % of their next gen customers don't matter...

Any coincidence that the Blockbuster fellow is also British? Does he hang out with Sony's Stringer? :) Unique that the Brits are setting the future direction for Hollywood, huh?

I've posted this several times in the 8000 threads on this subject today. Make sure those who want HD-DVD in BB stores please email, write, or call them to express your opinion. Complaining to each other hear does nothing. We may never see HD-DVD in BB stores but you have to at least make your voice heard.

I just sent blockbuster canada an email. I'm annoyed with having to drive halfway across the city to rent HD DVDs. There's 2 stores within 10 blocks of my home, I would appreciate being able to rent from those locations.

yeah, and by "customers tell us they want hd-dvd" they mean people actually renting them in bulk, not 50 hd-dvd fanatics from the internet spamming them with petitions and e-mails. so good luck, midnightwatcher and rdjam.

If you think that people were renting BD "in bulk" in those 250 stores... and that the numbers of people who care about BD rentals are somehow much larger than "hd-dvd fanatics", you're delusional.

Nobody is renting any HD media "in bulk". Sales are slow, I guarantee you rentals are too. Notice how they've only mentioned percentages, rather than numbers of rentals or revenue.

Blockbuster is looking to expand into high def in their B&Ms, but have been hemorrhaging money in those stores for years. They're simply taking the smaller risk by going with the format that has a higher percentage of rentals (because of the "PS3 factor"). It's an initial step that they'll reevaluate as the market matures. That's it.

When/if there are enough HD DVD players in homes to make a difference, they'll buy into that as well. But right now, neither one deserves to have the term "bulk" applied.


Sometimes, people get so caught up in their format biases and the "my-side-is-kicking-your-sides-ass" mentality, that we forget how pathetically freaking small this market is.

I've seen about 3 other Blockbuster news threads get closed and people pointed to the sticky thread, yet this one is allowed to survive? Why is that mods?

I've seen about 3 other Blockbuster news threads get closed and people pointed to the sticky thread, yet this one is allowed to survive? Why is that mods?

Because there is already a thread about Blu-Ray being expanded which has been stickied. All the other threads were simply repeats of the same information. This one has different information, so it survives.

Because there is already a thread about Blu-Ray being expanded which has been stickied. All the other threads were simply repeats of the same information. This one has different information, so it survives.

Giving the same news a different spin doesn't make it new news. This is pure damage control.

Giving the same news a different spin doesn't make it new news. This is pure damage control.


This is just the other side. i.e. Fair and Balanced, one thread for the Pro-DRM/Anti-HDDVD side. This one for the anti-DRM/pro-HighDefinition forces.

What spot? I have two local Blockbusters that rent HD DVD and will continue to rent HD DVD. There are also other video rental stores in town that rent HD DVD. The Toshiba HD DVD players are still top sellers. HD DVD is going nowhere but up. :)

Read that again, really look at what you are saying. Can you not see that this news is bad for new sales of HD DVD players?

Honestly? I understand your feelings on the issue but can you not even see how this press release and news coverage will have a detrimental....

Oh nevermind, don't you want to add some more crap to your sig?

That's OK... I'm not interested in Blockbuster anyway so they could stcok DIVX for all I care.

Because there is already a thread about Blu-Ray being expanded which has been stickied. All the other threads were simply repeats of the same information. This one has different information, so it survives.


but it is the exact same story just with an unnatural and delusional spin and an extremely misleading title.

Looks like HD-DVD damage control is in full swing, lol.
Just giving some much needed medicine to rabid Blu-ray supporters by putting things in their proper context.

How are consumers going to demand it if isn't in the stores in the first place?
By asking for it any time you visit. Take two minutes to email BB? :cool:

Actually, the press release stated OVER 70% chose blu-ray. You guys are in the 2X range.
70.1%? :rolleyes:

Discuss in the main Blockbuster topic.