The following is drawn wholly from a HD-HDTV public relations spin article about the raging high definition pre-recorded format war. The HD DVD camp was recently stung by a PR coup when Blockbuster popped up with a boldly worded press release saying that they will be carrying the Blu-ray format exclusively in a significant number (1450) of their better located stores. HD DVD advocates say that there is far more to the story than first meets the eye. The war between the two HDTV DVD formats, they claim, is far from won (as the Blu-ray advocates claimed immediately following the Blockbuster announcement). You, as always, are the final judge of which direction the disks are truly spinning.

Blockbuster Choice of Blu-ray has Little Impact on Blue Format War Austin, TX (July 2, 2007) - Blockbuster's recent announcement that 1450 of its stores would exclusively carry Blu-ray Disc titles as their high-definition offering, has been noted by some as a potential turning point in the battle between the two formats. However, the development may be considerably less significant than it appears on its surface, in affecting a format war that is arguably still a year away from crowning a victor. Paul Erickson, market analyst with IMS Research, feels the alignment between Blockbuster and the Blu-ray Disc format should not come as a surprise; "Sony is a supplier of video content to Blockbuster, has a major retail presence in video-related consumer electronics that can potentially be linked with Blockbuster on a promotional basis, and is a significant investor in the online movie download service Movielink, which Blockbuster has actively been trying to acquire. It makes much more strategic sense in general for Blockbuster to ally itself with Sony's Blu-ray Disc format versus Toshiba's HD DVD." Based on his work in the report, "The Future of High-Definition TV - 2007 Edition," Erickson states that the announcement will ultimately have limited impact: "The retail video rental business remains in a steady decline. Though this announcement appears to be a PR coup for Blu-ray Disc, it is doubtful that it will actually drive increased hardware penetration. Actual sales indicate that mainstream consumers are generally happy with DVD, and still find both blue formats' standalone players too expensive for mass adoption, regardless of content availability. Also of note, only a portion of Blockbuster's approximately 4500 retail outlets in the US are affected. The company has hedged its position by stating that consumer demand would govern its choices and by allowing its existing 250 stores that offer both blue formats, as well as its online rental service, to continue renting HD DVD titles." The expectation is for HD DVD players to reach the coveted $200 price point by holiday 2007 or early 2008 while maintaining a 40-50% price advantage over the cheapest Blu-ray players. Combined with slow Sony Playstation 3 sales in the US, Erickson believes these factors point to a format war that is still quite in contention: "The format that can achieve the greatest mass-market hardware penetration of its standalone players will ultimately win. With the price drops for both formats' players expected for the end of this year, 2008 will be the true test of whether HD DVD's low entry price or Blu-ray's greater studio support will prove the stronger factor in driving the mainstream sales numbers needed for victory."