The NY Times ran an article this morning titled Netflix Opts For Blu-Ray. This of course is bad news for HD-DVD, the other format for high definition movies. The format war has been playing out for some time and last month’s announcement by a few studios to back Blu-Ray exclusively basically put nails in the HD-DVD coffin, but there was always some slight glimmer of hope.

Netflix would have been a great strategic partner for HD-DVD because they buy a tremendous amount of movies and can help to shape consumer tastes. Renting HD movies through Netflix is much cheaper than buying them since the prices are so much higher than standard DVDs so the subscribers who do want to get their HD fix now have no choice - Blu-Ray is it, which means we should expect increased sales of those players.

The HD-DVD brand missed a great opportunity to align itself with Netflix in an effort to reach consumers and it will be a lesson in how brands can use channel partners to increase awareness of a product or service. HD-DVD to date has mostly been promoted on regular DVDs from partner studios, press and traditional advertising during the Christmas sale.

Does this mean that HD-DVD players are future doorstops and I am going to buy a Blu-Ray player anytime soon? Not a chance - still too expensive for my tastes and I need to buy an HDTV first anyway.

I think I am in the majority.

Filed under: Miscellaneous