Blockbuster backs Blu-ray

 

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Posted on 18 Jun 2007 at 08:51

Blockbuster is to exclude HD DVD from a major expansion of its high-definition movie rental business.

The world's leading video rental firm has announced that only Blu-ray discs will be available in the 1,700 stores that will be stocking HD discs for the first time.

Blockbuster's HD DVD inventory will be restricted to the 250 stores that currently offer both formats as well as its online rentals service.

Matthew Smith, Blockbuster's senior vice president of merchandising, said that in those 250 stores, Blu-ray accounted for 70% of HD rentals.

"We intend to meet the demands of our customers and based on the trends we're seeing, we're expanding our Blu-ray inventory to ensure our stores reflect the right level of products," says Smith. "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."

Blockbuster's decision can only shorten the odds on Blu-ray prevailing over the rival HD DVD technology. While there is a strong case for arguing that HD DVD is a better bet for consumers, Blu-ray has the backing of more Hollywood studios, which means more titles. More titles means more sales, and as Blockbuster has revealed, more rentals, despite some evidence that HD DVD players are selling just as well as Blu-ray boxes. Perhaps Sony's decision to put a Blu-ray drive in every PlayStation 3 is having the impact it hoped for.

The HD DVD Promotional Group said Blockbuster's move was short-sighted.

Author: Simon Aughton