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News
Blockbuster to Support Blu-ray

The video retailer will not carry HD DVDs in 1,450 stores.
By Phillip Swann
 
Washington, D.C. (June 17, 2007) -- Video rental giant Blockbuster will only rent HDTV DVDs in the Blu-ray format in 1,450 stores next month when it expands its high-def service.

That's according to an exclusive report today from the Associated Press.

The retailer has tested both formats in approximately 250 stores for the last several months. But Blockbuster officials say 70 percent of the high-def rentals are Blu-ray.

"The consumers are sending us a message. I can't ignore what I'm seeing," Matthew Smith, Blockbuster's senior vice president of merchandising, tells AP.

Blockbuster is expected to announce the decision to favor Blu-ray over HD DVD on Monday, AP reports. However, the retailer will continue to carry HD DVD titles in the original 250 test locations.

Smith said that Blu-ray titles are outpacing HD DVD rentals because there are movies available in the format. Four of the eight major film studios are backing Blu-ray exclusively with only one (Universal) supporting HD DVD exclusively.

"When you walk into a store and see all this product available in Blu-ray and there is less available on HD DVD, I think the consumer gets that," Smith said, according to the AP.

Blockbuster's decision could be a serious blow to HD DVD in the high-def format war. But one HD DVD backer said Sunday that Blockbuster is acting on limited information.

"I think trying to make a format decision using such a short time period is really not measuring what the consumer is saying," said Ken Graffeo, co-president of the promotional group for HD DVD.

See Swanni's analysis of Blockbuster's decision.

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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

Click TVPredictions.com to read more news and features on TV technology. 

 
 
 
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