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Monday, June 18, 2007

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A Blockbuster vote for Blu-ray

A wall of movie titles available on Blu-ray. (Toru Yamanaka/AFP/Getty Images)

It's the Beta vs. VHS battle of our time... two rival formats for high-definition DVDs are vying for market share. A move by the nation's biggest DVD rental retailer could tip the balance. Dan Grech reports.

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A wall of movie titles available on Blu-ray. (Toru Yamanaka/AFP/Getty Images)

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TEXT OF STORY

SCOTT JAGOW: You've heard that two high-definition DVD formats are duking it out: HD DVD and Blu-ray. Well, score a big one one for Blu-ray.

Today, Blockbuster, the nation's largest renter of movies, is expected to announce that it will rent high-definition DVDs only in the Blu-ray format. That's according to the Associated Press. Marketplace's Dan Grech has more.


DAN GRECH: Next month 1,450 Blockbuster stores will dedicate precious shelf space to high-def DVDs. And only Blu-ray discs will be there.

Richard Doherty is president of Envisioneering Group, a technology assessment firm in New York. He says Blockbuster was itching to pick just one format.

RICHARD DOHERTY: There's a shelf space crunch at most of their stores. And to stock both formats — that's a pretty daunting decision.

Blockbuster chose Blu-ray because 70 percent of customers preferred that format in test markets. Doherty says Blockbuster's decision may be a turning point in the format war.

DOHERTY: Blockbuster is the closest point of presence for most people to get a rental DVD and now a high definition title. And this makes the headwind against HD DVD much higher.

Still, with Microsoft and Toshiba backing HD DVD, the battle is far from over. I'm Dan Grech for Marketplace.

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