It should not degrade the signal, but you might run into some HDCP issues when splitting the blu-ray content to the tv and your monitor.
Give this splitter a shot:http://www.monoprice.com/products/pr...seq=1&format=2
1X2 Mini HDMI® Splitter w/ 3D support
Play any source device like your Playstation 3®, Xbox 360®, 3D blu-ray player, or cable box on two displays simultaneously with this 1x2 splitter!
Supporting resolutions up to 1080p, while handling multiple high definition audio such as Dolby TrueHD™, Dolby® Digital Plus, DTS-HD Master Audio™, while also supporting LPCM audio formats.
This splitter is equipped with auto signal amplification & an equalizer which improves signal distance for slightly longer runs. Perfect for any home theater, business, or classroom application.
Video formats supported: 1080p, 1080i, 720p, 576p, 480p, 576i, 480i
Supports 'Deep Color' (10bit & 12bit)
HIgh definition audio supports: DTS-HD Mater Audio™, Dolby TrueHD™, LPCM 7.1, AC3, DTS, DSD
Synopsis: This High Speed HDMI® splitter gives you all the latest features and functionality. The splitter can be plugged into a single source (i.e. blu-ray player, Playstation 3®, Xbox 360®, or HD cable box) allowing you to output the video and audio to 2 separate displays.