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Blockbuster: We'll Add More HD DVD At Our Stores As Consumers Want It

post #1 of 80
Thread Starter 
It seems like some of the reporting going on today is quite different than what Blockbuster is saying. As Amirm points out, one bit of this is available now: http://www.cnbc.com/id/15840232?video=383736735&play=1

The above has a nice interview of Nick Shepherd who is the COO of Blockbuster. While he makes some positive statements about BD, you see that what he says is a far different story implied/told by others. Statements like at this being a"nano-second" into their decision making process, not any kind of long term decision. This, despite Maria (the reporter) trying to tell him otherwise. Good data also from Warren on rental versus purchase....
post #2 of 80
They'll keep adding titles as they are released online. That will do it for me. I keep my Q full of HD-DVD titles. I just need them to deliver...

Frankly, for me, I could care less if they roll out BD to all their stores. As long as the online is going strong, I'm sold.
post #3 of 80
You can go to the Blockbuster website and send them an e-mail. It might make them reconsider very soon. Let them know that they are not being consumer friendly, since their influence could help Blu-ray win and force the general public to go with a more expensive format. Of course if the BDA is paying them, all bets are off.
post #4 of 80
I liked that very much. Thanks for sharing.

THe Blockbuster COO WAS VERY careful with what he said. I thought it was fair and he made sure to say they were NOT BACKING BR. They were just going with what they determined to be COnsumer preference today due to POS3. They will re-evaluate ongoing and it may be different in 12-18 mos.

I thought it was impressive that the BR guy was pretty neutral with his response. He wasn't pro-BR so much as he stated the potential impact to the consumer >>> J6P walks into Blockbuster and sees BR only >>> Leaves an impression when he goes into Best Buy or some other retailer.
post #5 of 80
The "Blu-ray guy" wasn't really a Blu-ray guy (despite the interviewer referring to him that way), but rather an analyst. I agreed pretty much with what all of them had to say. My summation of the talking points:

- Blockbuster: this is essentially a decision "for now" based on "now" data. It could change in the future. Online will still rent both and online will help them to gauge consumer interest in both formats.

- Warren (adviser to HD DVD and ex-WB guy): Blockbuster's data driven by current miniscule market and driven heavily by PS3 owners who are renters, not buyers. Buyers (not gauged by Blockbuster) are the more lucrative market that will help drive a format's success because studios make more by selling to end-users than they do to rental chains.

- Analyst guy: Intended or not, this move by Blockbuster effectively results in Blockbuster serving as a marketing device for Blu-ray. J6P who is currently largely unaware of high-def DVD formats and almost entirely unaware that there are two competing formats in a "war" will now see Blu-ray displayed on the shelf and will start to think about it.

Rebuttal from Warren on analyst's point: Yes, but J6P will then discover that Blu-ray hardware is priced out of his budget. HD-DVD currently better poised to enter J6P's budget sooner and Blockbuster will follow the market, not the other way around.
post #6 of 80
Really interesting video. Thanks for sharing OP.
post #7 of 80
Why are journalists allowed to cover things that they know nothing about?
post #8 of 80
Quote:
Originally Posted by Megalith View Post

Why are journalists allowed to cover things that they know nothing about?

If you're talking about TV journalists...I'm not sure that there are very many topics that they know much about. So if you disqualify them on that basis, they wouldn't be allowed to cover much of anything.
post #9 of 80
The bottom line is that HD must find a way to get player sales into the millions just as BD has done with PS3.

Granted the attach rates are low but it's still a multi-million base of players to sell or rent into.
post #10 of 80
Quote:
Originally Posted by Megalith View Post

Why are journalists allowed to cover things that they know nothing about?

Because Paris Hilton is still in jail.
post #11 of 80
Quote:
Originally Posted by srauly View Post

- Warren (adviser to HD DVD and ex-WB guy): Blockbuster's data driven by current miniscule market and driven heavily by PS3 owners who are renters, not buyers. Buyers (not gauged by Blockbuster) are the more lucrative market that will help drive a format's success because studios make more by selling to end-users than they do to rental chains.

Wasn't his quote along the "due to a dearth of games..."...

It makes perfect sense that if Blockbuster is going to roll out an HD format to the nation it would be the one they are seeing most business in. From the video, it's pretty clear HD DVD is more concerned with sales revenue considering that's the market with the best potential.

Nothing the Blockbuster COO said indicated that expanding the HD DVD offerings nationally would never occur. Based on their information and sales statistics, it only makes sense to them to expand Blu-ray...currently. It appears that if their numbers indicate it makes sense (i.e. increase in online HD DVD rentals) they will expand accordingly.
post #12 of 80
Quote:
Originally Posted by MidnightWatcher View Post

It seems like some of the reporting going on today is quite different than what Blockbuster is saying. As Amirm points out, one bit of this is available now: http://www.cnbc.com/id/15840232?video=383736735&play=1

The above has a nice interview of Nick Shepherd who is the COO of Blockbuster. While he makes some positive statements about BD, you see that what he says is a far different story implied/told by others. Statements like at this being a"nano-second" into their decision making process, not any kind of long term decision. This, despite Maria (the reporter) trying to tell him otherwise. Good data also from Warren on rental versus purchase....

Did you notice what the BD rep said after the HD DVD rep made the point that consumers would find out that HD DVD is cheaper when they go into Best Buy?

He said that the reps would tell the potential HD DVD customer that BR has more studio support!

So the story that BB employees are taught to push BR, and that BB is in bed with the BDA is obviously true.
post #13 of 80
theres nothing wrong with sony or toshiba pushing their format however they can, its called good business tactics. When i used to sell computers back in the days, i got like 20dollars for every AMD processor sold. Occasionally Intel would have specials also giving away free laptops for selling certain amont in a month.
post #14 of 80
I guess Hollywood Video can clean-up if they go HD DVD rental exclusive in their stores... it would only make semse to go the opposite way of Blockbuster.

Blockbuster had better be careful here. I don't know who was involved in any decision making to carry Blu Ray rentals in their stores, but it seems like a bad idea to carry the media for the more expensive HD format.

I think traditionally, Blockbuster has been an outlet for the average Joe who spends as little on the home entertainment set up as possible.
post #15 of 80
Man...all the blu-ray crap today...just because of BB

Yes thanks for the link....
post #16 of 80
This should be a good wake-up call to Toshiba. Toshiba seemed to be doing something right with the player pricing, but they really need to get the sales data out there to show what a success it is. Toshiba also needs to pay the stores, like the BDA does, to put HD DVD in a more favorable light. Perhaps they should really emphasize that Universal movies are only available on HD DVD--and that should remain true at least until the end of the year. By Christmas we should have a really good idea where both formats stand.
post #17 of 80
Quote:
Originally Posted by Goatse View Post

theres nothing wrong with sony or toshiba pushing their format however they can, its called good business tactics. When i used to sell computers back in the days, i got like 20dollars for every AMD processor sold. Occasionally Intel would have specials also giving away free laptops for selling certain amont in a month.

It is wrong if the customer does not knows that you are getting a kickback.
post #18 of 80
Quote:
Originally Posted by Goatse View Post

theres nothing wrong with sony or toshiba pushing their format however they can, its called good business tactics. When i used to sell computers back in the days, i got like 20dollars for every AMD processor sold. Occasionally Intel would have specials also giving away free laptops for selling certain amont in a month.

It may be lawful, but that doesn't make it ethical.
post #19 of 80
Quote:
Originally Posted by fire407 View Post

This should be a good wake-up call to Toshiba. Toshiba seemed to be doing something right with the player pricing, but they really need to get the sales data out there to show what a success it is. Toshiba also needs to pay the stores, like the BDA does, to put HD DVD in a more favorable light. Perhaps they should really emphasize that Universal movies are only available on HD DVD--and that should remain true at least until the end of the year. By Christmas we should have a really good idea where both formats stand.

Toshiba hasn't announced what they sold recently. The players that have been flying off the shelves will be needing content...whether bought or rented. The beauty is they only play movies......and the studios know that. Any sales figures available haven't taken this increased user base into account since the promotion only just ended recently.
post #20 of 80
Quote:
Originally Posted by HomerJay View Post

Toshiba hasn't announced what they sold recently. The players that have been flying off the shelves will be needing content...whether bought or rented. The beauty is they only play movies......and the studios know that. Any sales figures available haven't taken this increased user base into account since the promotion only just ended recently.

post #21 of 80
Quote:


Dear Mr. ASSPOP,

Thank you for your feedback regarding our decision to expand our Blu-ray inventory in more than 1,700 corporate-owned stores nationwide. Please note that this expansion will not impact the current inventory of HD DVD titles in store or online. Blockbuster continues to carry HD-DVD in about 250 stores and also offers HD-DVD titles online.

Blu-ray rentals have been outpacing HD DVD rentals in our stores where we've been offering the high-definition format - 70 to 30 percent in 2007. Additionally, because more studios support the Blu-ray product, there's a wider selection of titles available on this format to offer to our customers.

While it is still too early to say which high-definition format will become the industry standard, we will continue to closely monitor customer rental patterns both at our stores and online, so we can adjust our inventory mix accordingly and ensure that Blockbuster is offering customers the most convenient access to the movies they want, in the format they want. That may mean in the future that we will add HD-DVD titles to additional stores.

Our goal is to offer customers the most convenient access to the movies they want and that means giving them the best availability and the best selection possible in the formats they prefer.

Sincerely,

Jeff Sieg
Manager, Corporate Communications
Blockbuster Inc.

This is what i was emailed.
post #22 of 80
Quote:
Originally Posted by schandorsky View Post

It is wrong if the customer does not knows that you are getting a kickback.

thats why you study up first. Believe it or not but pretty much any high ticket items have some sort of kickback, automobiles, warrenties, insurence, tweeters, myer emco and computers come to mind.

Most likey if your on some meds your doctor didn't prescribe it for your own good, pharmaceutical companies give huge kickbacks.
post #23 of 80
Quote:
Originally Posted by schandorsky View Post

It is wrong if the customer does not knows that you are getting a kickback.

Come on now...most retail salespeople get SPIFFS from manufacturers for selling their products. I remember I used to get them from Intel, AMD, HP, Acer...and people I know who were in audio/video sales would get all sorts of free gear from Mitsubishi, Sony, and others for earning a certain amount of points for selling their brand. Is a salesperson required to tell the customer "just so you know, i'm getting 23 sony points for selling you this overpriced Bravia unit, and as a result I'll now be half way to getting my free 42" LCD panel, compliments of Sony"? I don't think so. Yes, it's kind of shady. But the reality is the customer should do their own research if they want to be assured of getting the best product for their needs.
post #24 of 80
The new Sony BD player is a great deal. I wasn't sure it had 5.1 analog outs though.
post #25 of 80
Quote:
Originally Posted by plazman View Post

The new Sony BD player is a great deal. I wasn't sure it had 5.1 analog outs though.

I wish it wasn't a Sony...they screwed me when I worked for them and limited a friends artistic voice (music) when he didn't want to follow their "cookie cutter" format.
post #26 of 80
Quote:
Originally Posted by TheSimplePanda View Post

Those three things are worth $100 to me and I think they will be to most buyers, too. Basically, for another $100 you're getting a player that's functionally equivalent to the $799 XA2. Yikes.

...


The new Sony player does not decode TrueHD or DTS MA and it does not have a Reon video processor for upconverting SD DVDs so I don't think you can legitimately claim that it is functionally equivalent to the XA2.
post #27 of 80
The XA 2 is easily superior to the Sony. The Sony is somewhat equivalent to the A20.
post #28 of 80
does the HQV really make a big difference in HD?? from all the reviews on it i've read other up upscaling the picture for hd isn't much different then A2.
post #29 of 80
I think that all this will boil down to lower disk prices and more movies to view.What needs to happen is the HD DVD needs to flood the market with as many movies as they can very fast.
The new sony BR player is priced nice , but it is still high.Look forward to the A2 dropping down to around 200.This will end up being the flag ship for HD DVD till the other players drop to a good price for the average consumer to buy.Some may think that price isnt everything but it is, in todays world we want as good as we can get for as little as we can get it for.
post #30 of 80
Quote:
Originally Posted by Dahlsim View Post

The bottom line is that HD must find a way to get player sales into the millions just as BD has done with PS3.

Granted the attach rates are low but it's still a multi-million base of players to sell or rent into.

Those $250 Wal Mart HD DVD players would do the trick. Toshiba just needs to get off their @ss and do something about it. I swear, it's almost like they want BR to win sometimes.
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