Most of the comparison info that shows up in searches online is out of date due to the quickly evolving online movie rental industry, and aggressive competition between Netflix and Blockbuster. Sites generally do not revisit their comparison pages to update information which has become obsolete. This Savage Japan page is checked for accuracy and updated monthly or more often if necessary.
February 11, 2008 - Abandoning HD-DVD
Netflix goes with Blu-ray exclusively.
Netflix sent out an email announcement today to customers who had selected the HD-DVD format option for use with their accounts. In the email Netflix states they will no longer buy movies in the HD-DVD format, and they will be stocking Blu-ray discs exclusively as their high definition format of choice. Netflix's current supply of HD-DVD high definition movies will continue to be available to members "for the next several months" as stated in the announcement. Netflix also clarified that they will not be replacing existing HD-DVD titles in their rental inventory as the discs wear out and become lost.
Warner Brothers' recent announcement of their plans to drop HD-DVD distribution and commit to Blu-ray is starting to ripple through all aspects of the industry, with most in agreement that the format war is finally over. With Warner Brothers exclusively in the Blu-ray camp, the already distinct Blu-ray film studio distribution advantage will be even more pronounced. HD-DVD simply will not have enough software products to compete. I am sure Netflix and Blockbuster are both happy to see an end to the format war. This will simplify their operations quite a bit.
Note: Blockbuster announced last year that they would not stock HD-DVD format movies in the majority of their stores. Blockbuster does still offer HD-DVD movies via their online service, but new HD-DVD titles from any source are going to be few and far between in the coming months. With few companies releasing on HD-DVD, 2008 will be the year that sees the HD-DVD movie format disappearing very rapidly from all venues.
Same Day Update: I just came across Best Buy's announcement today that they are adopting an official policy of promoting Blu-ray as the best choice in High Definition. The significance of well-known heavy hitters like Netflix and the Best Buy electronics chain taking such a definitive stand cannot be dismissed. More announcements along these lines are inevitable and sure to be only days away.
Update: February 19, 2008
HD-DVD is offcially dead.
Wow, that was fast. After the Netflix and Best Buy simultaneous announcements favoring Blu-ray over HD-DVD 8 days ago, and with Target's already known Blu-ray leanings, Wal-mart on Feb. 15 announced plans to stock Blu-ray products exclusively.
With no potential for victory now, Toshiba made it official and announced their surrender today. HD-DVD player production is being terminated.
Final Thoughts on the High Definition Disc Format War
With similar image quality on the discs and much lower prices for the early players, I was not opposed to HD-DVD taking a stab at the market. But in the end higher capacity wins out and we are probably better off for it beyond the issue of movie data. With innovation leader Apple (and obviously Sony who developed the Blu-ray format) already committed to the higher capacity Blu-ray discs for their newest personal computer disc burners, compatibility across the board from computer to movie disc player was really the ideal scenario. And with computers more capacity is especially preferable.
Low cost, high definition camcorders are already on the market, and soon many people will be editing and burning high definition discs directly from their home computers with new versions of iMovie, iDVD and other consumer video programs.
Despite the media's understandable focus on the large amounts of money connected to film sales, the high definition format war has always had more than commercial movie distribution issues riding on it.
The end of the high defintion disc format war will also simplify things for independent filmmakers like me when it comes time to output movies for film festival submission and other distribution needs. A standardized high definition format helps everyone.
January 1, 2008 - Current State of Affairs
Update: March 1, 2008
No changes since Blockbuster's December, 2007 overall rate increases.
Blockbuster just changed their rates, raising the prices (some quite dramatically) on all 7 of their plans that allow store exchanges and lowering the prices on 2 of their other plans effective December 27, 2007. It will be interesting to see if Netflix responds with any rate changes.
Though the rate increases are sure to disappoint many of their current customers, Blockbuster says some people are using the unlimited in-store exchange plans too liberally. Those plans did see the most severe increases. However, Blockbuster raised the prices on all the limited store exchange plans as well.
Blockbuster has been losing money for so long now, that they have to find some way to reverse the direction of their cash flow if they want to stay in business much longer. Long term Blockbuster "put stock option investments" that count on the company failing might not be such a bad risk for options investors these days. Even a large company like Blockbuster that has profited wildly in years past cannot burn cash indefinitely.
Blockbuster raised the rates of all of their plans that allow store returns, but lowered two plans by $1 that don't offer store returns and which can be directly compared to Netflix. This will give Blockbuster the ability to imply they are cheaper than Netflix. However, many (if not most) of their potential new customers will not be signing up for those lower priced plans. It is clever marketing to try and draw attention away from their rate hikes (some very large), but new customers need to pay attention and not make too many assumptions about where the best value lies from the numbers they might see in upcoming Blockbuster marketing campaigns.
Netflix's advantage is that they are already making a profit and do not need to raise the rates of their higher volume plans to try and salvage their business as Blockbuster must. If Netflix can afford to lower their two comparable plans by a dollar each to match Blockbuster's two minor reduced rate announcements, Netflix might be able to put even more severe pressure on Blockbuster's attempts to find profitability before they go under.
Of course if enough customers stay on board and accept Blockbuster's huge rate increases to some of their plans, Blockbuster might be saved.
