Monday, February 11, 2008

HD-DVD

So as not to totally hijack Meghan's posting about Search, this is a space for gripes (or cheers) of today's announcement concerning the Netflix support of the Blu-Ray HD format. I have little to add to the press release. Netflix has inventory of HD-DVD titles currently, and will continue to ship them to those who Queue them as possible. I think it was clear that the plan is simply not to continue to purchase that format, which over time will naturally phase out. Money that might have been spent on new titles in that format will shift to increasing inventory of the Blu-Ray titles, which will improve availability, and I believe that the end of an industry war will ultimately make more titles available and lower prices on associated hardware and software.

Comment here, or head to the Community forums at Ning to join the conversation already underway.

247 comments:

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Nick said...

As a customer i find this to be a disgrace, I joined netflix because it offered both HD-DVD and Blu-Ray dvd. I will probably cancel my service in the next few months because of your decision in this matter. As a consumer, i joined because you offered selection that others do not. You are taking this selection and choice away from your customer, and in doing so it will result in the loss of my business and those I recommended. If you look at my Que you will notice I have selected HD-DVD and Blu-Ray, standard DVD is not an option to me. Your offer of replacing HD-DVD in my que with standard dvd is a disgrace, I have a dual player so that i never had to watch a Standard DVD again. You doing away with HD-DVD limits me and my choices. i'm sorry to say that I will be taking my business else where after this change is complete. I suggest in the future that if you continue to be a company that provides a service with choices, that you consult / poll your subscribers before you make decisions that afftect their selection and choice.

Thanks,
Nicholas R. Hoyer
A Former "Valued" Customer.

Robert H. said...

Any chance the HD DVD's will be added to the previously viewed for sale DVD's soon?

Robert

Craig said...

What happend to format Neutral? i have been a member since 1999. I purchased a hddvd player based on the fact that netflix was fromat neutral. bluray players are far to expensive and the standerd is'nt even solid yet. you should stay format neutral untill there are no more studios suporting hddvd. this is more like blockbuster than the netfix i know. hope you reconsider

striker777 said...

I will never subscribe again.

Professor Plum said...

Michael, thanks for your post. While I don't agree with the business decision, what you post makes sense. I'm not sure why they didn't consult you before publishing the announcement because there's a difference between "improve availability" as you say and "better selection" as the announcement says. Improved availability is a plausible/sound argument. "Better selection" is at best stupidity and at worst out right dishonesty.

This battle reminds me of the battle between SuperCDs and Audio DVDs... you know the one that was made moot in a few years time by digital downloads. With cable companies promising even more impressive download speeds than FIOS, it would be silly to shell out money (if cost is a factor for you) for hardware that is on the verge of being replaced before it's even been adopted.

I guess anyone with a BluRay player or an HD DVD player will know what it felt like to be that person who owned a LaserDisc player.

I assumed that I would move along with NetFlix to the digital download age in a couple of years from now. I guess I'll instead wait for Apple to release its next generation AppleTV and get my HD content that way.

Bruce said...

Netflix is a conduit for delivering content whether it be DVD, HD DVD or BluRay. It should provide more service and not eliminate them.

As for cheaper format, HD-DVD is easier to manufacture since it relies on existing DVD manufacturing equipment has has higher yields. BluRay is inherently more difficult to manufacture because of the the thin cover sheet and its smaller depth of focus. The yield is lower. Also all manufacturers must spend additional millions of dollars per line play in the BluRay game. This cost is amortized and end up with consumers holding the bill. The majority of the margin on profit is in the content. Given the same content, the price should be cheaper to produce HD-DVD. The higher cost for the studios or the content holders is because they need to produce discs for 2 distribution channels, HD and BR. Inevitably there will be left over stock for one format or the other depending on which region had higher adoption of a particular format.

In the game industry, Wii uses DVD, PS3 uses BluRay, and X-Box supports HD-DVD. Of those Wii is outselling both the higher definition formats combined. It's the enjoyment factor that counts. For some it is in the high def, others in the sound, and many it's the content. Don't compare cable standard def to high def as to DVD to HD. If a DVD movie has good authoring with high bitrate, the line doubled experience is just as enjoyable as any high def. Corporate greed should pave way for the consumers because we have enable them to enjoy fat profits from DVD. In return they want more in the way of converting catalog titles into a different format so we have no choice but upgrade. Corporate greed. If the optical disc industry doesn't stop its sibbling in fighting, there are alternative technologies just waiting to chomp at the bit.

Netflix is doing a disservice to its members by reducing customer choices and picking a format that would incur a higher manufacturing cost. Luckily Blockbuster still offers HDDVD. I might convert after having been a loyal Netflix customer for many years. I like the statistical intelligence Netflix provides but to cut services is unacceptable.

Jim said...

I was on the edge of considering whether or not to cancel my subscription of 3 years. This announcement has been the nail in my coffin.

ars technica has a nice write up about Netflix's decision.

Anonymous said...

I bought a HD DVD player as well based on the concept that netflix was going to support this format. I am unhappy as well with the decision.

Anonymous said...

I agree completly with Nicholas Hoyer (the first blog I read) although for a slightly different reason. Two months ago I spent $200for an external USB hd dvd drive. I also upgraded my computer that I use as a media center. Now, already I'm SOL. Netflix just lost my loyalty after six years. Period.

c13 said...

i agree with your decision. these people who are a bit disgruntled here knew that there was a format battle that had to end. major studios have gone +50% to blu-ray. blockbuster went all blu-ray. netflix has a major say in the battle. by going with the majority, it will make it easier for those consumers (like me) who have been waiting for the end of the battle can now buy a blu-ray dvd player and know that their format will be supported a year from now.

hd-dvd is dead. netflix just put a nail in its coffin.
thanks!

Mort said...

I hate to sound crass, but all of you knew you were risking getting a "beta vcr" when gambling this early on HD-DVD or Blu-ray. As someone who hasn't rolled the dice, I resent paying the same fees as those requiring all this additional purchasing. Either I'm paying too much or getting too little so that you can play with your hi-tech toys, while the rest of us (who either can't afford to or don't want to piss away our money) sit back to see which one turns into an Edsel.

Melissa said...

Likewise disappointed about the decision since I just purchased an HD DVD player for my xbox 360.

When I spoke to "Brandon" at Netflix, he let me know that they would also be purging their stock of HD DVDs. So even the older titles will not be around to borrow in a few months.

So, I called to express my disappointment. I encourage you to do the same.

We'll see what happens.

Mad in Antelope (David) said...

As an owner of an HD-DVD player, I am not to pleased with the email that I received in relation to your decision to go Blu-ray only. Now I understand that most everything has been leaning towards the Blu-ray format, but I feel that you should still support us, your loyal customers until the end of the format war and not before it has been officially declared over. I understand that you will be making your current inventory available to us, but the email shows us that you are going to leave us high and dry with new releases. I feel that you should at least offer any new releases that will still come out in HD-DVD until the day it is dead.

I do not have a Blu-Ray player at this time, nor will I be getting one for some time.

Marty M. said...

I am a newer customer of Netflix and I joined Netflix because of the HD-DVD support. I am canceling my service since I do not plan on purchasing Blueray. Since Netflix does not need my money, I have Comcast and my $17 a month will get me on demand HD content without the need to waste money on the expensive Blueray players.

Laurie H. said...

I have been a satisfied customer of Netflix for a few years UNTIL NOW. I am extremely disappointed by the drop of HD-DVD and will definitely be using my local video stores, like Hollywood Video, more often as they have a wide HD DVD selection available and are not catering to one sector while discriminating against another! As another poster said, Blu-Ray is far more expensive and complicated to produce and this makes no sense. What's next, higher subscription fees to offset the purchase of Blu-Ray? No thanks, I'm taking my business to someone who respects and welcomes ALL customers!

Anonymous said...

So, how much did Sony pay or what incredible incentives has Sony promised to Netflix to phase out the HD-DVD format? If there wasn't a significant pay-off involved, why else would a company like Netflix make such a ballsy move to alienate so many current and potential customers? Do you realize how many new HD-DVD players have been selling the past month now that prices are so low? A fire sale? Maybe. But all of those new HD-DVD player owners will be looking to pay good money for media to play in their new machines. How can a company who is in the business of providing rental media to customers rationalize making an announcement like this before a clear winner in the format war has been decided. When you are one of the sole providers of rental media for a format, why wouldn't you instead wait until paying customers actually stopped demanding the product before making such an announcement? Buying off studios and companies like Netflix and Blockbuster with future incentives in return for dropping support for the competing format is a brilliant move by Sony. Shame on you Netflix and the rest of you greedy companies for taking the bait. This is a major setback for consumers. HD-DVD is clearly the better format. Be assured that Sony is not your friend. They are making whatever deals and taking whatever steps are necessary to avoid another Betamax-type defeat. So, do you think the prices will come way down on Blu-Ray hardware with HD-DVD out of the way? Think again. That is not "Sony-style" (pun intended). In terms of equipment and media sales, HD-DVD has been holding its own against Blu-Ray. But that doesn't matter, folks. It's all about politics and money. The studios and retailers who are now lining up behind Sony are in it purely because Sony has offered them a deal. Trust me - they care nothing about what's right for the consumer. The Blu-Ray followers are going with whoever is the highest bidder for their vote. I for one will never again buy another SONY product, set foot again in a Best Buy store, or order another Netflix movie.

So Long Netflix and all you Sony fanboy cronies.

Another angry "ex" customer.

Rob,
Littleton, CO

MCWHAMMER said...

I wonder if the same people suddenly ready to unsubscribe are also the people who were set to unsubscribe when the "New Releases Page" fiasco began?

Odds are, same people, they got over it.

Blu-ray for the win.

MCWHAMMER said...

I for one will never again buy another SONY product, set foot again in a Best Buy store, or order another Netflix movie.

Ha ha, good luck with that! Try to also avoid driving an American-made car, visiting McDonald's and using internet service. It might be kind of hard to do.

Oh, and you are seriously misinformed. It's not called "Sony Blu-ray". Many manufacturers co-produced the Blu-ray format. Sony backs it like all of the others. Get your facts straight, and go pick up a PS3.

Justin said...

Wonderful decision Netflix. I can fully understand your logic. You can only diversify so many ways and I've found that Blu-ray delivery tends to take a very long time due to limited availability. Now that all the money can be spent on one format this will improve the situation.

Don't worry about the upset HD-DVD naysayers. This is what happens when you live on the bleeding edge.

Bravo Netflix!

Bill said...

I am appalled they would ignore customers that currently have an HD DVD player.
I can not affored to purchase a Blu-Ray player and therefore will be taking my business to their competitor.

Shame on you Netflix, you should offer all that is on the market to your dedicated customers.

I can go to Wal-Mart and have a wide selection of a particular product, not just one type, just because it may be cheaper to purchase.

I’ve been a customer for a while and am sad to say that I am very disappointed in your company.

Thank you

Anonymous said...

id also like to post my disappointment for cancelling HD-DVD availability. Must have been some kick back on this one, because the war is not over. Moreover, what is the harm in still offering hd-dvd? thanks netflix for stopping a neutral service. very much considering cancelling my membership over this.

Double G said...

I am very disappointed in Netflix's decision to discontinue support of HD DVD and their customers that support the format. I hope someone at Netflix is paying attention. We will be discontinuing our subscription. Netflix...you suck!

Anonymous said...

Going to get a Blu-Ray player this coming weekend. I knew better than to bite too early and now it looks like my patience will pay off.

Thanks Netflix for making the right decision.

Anonymous said...

Dam! I retired on SS last October, bought a new LCDHDTV for my 2 boys and I and an XBOX360 for them. We use the XBOX to watch HD films. No way, now living on very small fixed income, that I can afford a Blu-Ray---guess I will have to wait until I win the lottery or a Blu-Ray player. I'll be cancelling my membership when I can no longer get a good selection of HiDef movies I haven't yet seen...what with you guys and Blockbuster saddling up with the Blu-Ray folks and leaving all of us who went with HD players behind will just loose us in your dust. Happy Trails to you but I'm pissed! Is this decision based on your customers, i.e. have you been getting more requests for Blu-Ray then HD discs? Or is this a kick-back deal with the Blu-Ray folks funding this market take-over? Bottom line thinking be damed!

Anonymous said...

and by the way, complaining here will not make them change on this. We learned that from the RTW rant. But if it makes you feel better, then rant away.

Bill said...

Let Netflix know your concerns. Don't call Cus/Svc, call their corp office.

Corporate Headquarters:
100 Winchester Circle, Los Gatos, CA 95032,
(408) 540-3700

Fax 408 540 3737

Senior Management Team:
Reed Hastings, Founder & Chief Executive Officer

Neil Hunt,
Chief Product Officer

Leslie Kilgore, Chief Marketing Officer

Barry McCarthy, Chief Financial Officer

Some of you may remember what fans did for the TV shoe Jericho, they send tons of "Nuts" to the CSB Corp office.

Sean said...

I'm sorry to see Netflix make the decision to be a follower rather than a leader. Just because the tide is turning on Hd-DVD doesn't mean it has no support. I liked that Netflix was format nuetral since I own both formats but it's a shame that you've cut out half of my selection just to save some money. I suppose that's a good business idea just like what you did with the RTW page, but just like that decision, it isn't very customer friendly.

Anonymous said...

I suppose that's a good business idea just like what you did with the RTW page

then sounds like you undertsnad why they did it.

dissapointed said...

WELL, LIKE MOST OF YOU I WILL SOON BE A BLOCKBUSTER CUSTOMER. NETFLIX HAS OVERALL BEEN A GOOD SERVICE, MOSTLY BECAUSE THEY DIDN'T CHARGE EXTRA FOR HD DVD'S. SORRY NETFLIX BUT YOU'LL BE EATING THIS ONE.

John said...

I cancelled my account because of this decision. You can read more on my blog at http://johna.org/

Professor Plum said...

It's difficult to avoid Sony, NetFlix, and Best Buy?

I guess if you don't have Internet access and/or never heard of Crutchfield or SamGoody, I could understand why you might think Best Buy is difficult to avoid. I assume you think that Red Lobster is also excellent sea food.

I think the Walkman I purchased 20 years ago was the last Sony product I had.

As for NetFlix, I had nothing but good things to say about it until their decision today. I don't care about the format war -- if HD DVD dies, so be it. As I've posted before, the winner is likely to be the champion for as long as Buster Douglas ruled the heavyweight class. What makes no sense is offering consumers less choice but packaging it as "better selection". Did Putin or Chavez retire and become marketing director for NetFlix? Who else but socialists could try to package fewer options as more options. On the bright side, Apple will be starting their HD rental service in a couple of weeks, so the transition away from NetFlix won't be a difficult one.

Anonymous said...

What makes no sense is offering consumers less choice but packaging it as "better selection"

Hmm....sounds awfully like the argument for removing the RTW page to "improve customer satisfaction".

If you're going to do it, just do it, and accept the consequences without trying to spin it as being "for our benefit." That's what's really galling.

jeld said...

People People !!! Come On !!!

Have None of you people learned throughout your lives that Big Business cares nothing about what you think or say as long as they know the money will still be flowing!!!

And yes it still will be flowing!!

Hd Dvd Owners are such a small percentage of their customer base that they are willing to take you as a loss.. And knowing that alot will still stay anyway...

The blame really goes to YOU the Hd Dvd Consumer!!! You people knew that there was a format war going on and that certain studios weren't going with certain formats... People with any BRAINS at all would know that something was going to finally happen..

But with the lure of CHEAP.... You all fell for the wrong format.. And that is what you get..

And you know what is going to make you even more mad than reading what I just said about you?

Yes you will eventually Buy the more expensive brand .... Because it will be the only available one and you all have to have it....

kinda like buying oil at prices you can't and won't do anything about... You will do what Big Business wants whether you like it or not

Da_Cheeze said...

The choice of Warner Brothers has not done anything in the consumer's benefit. If anything, they used their own power to supposedly decide for the consumer and take away choices, rather than allowing free markets to determine the next high-definition format. I am extremely disappointed with Netflix in it's disregard for the consumer in this matter, and in supporting a format that embraces DRM and limited content licensing, do the detriment of fair use.

rick said...

@Jeld.

Yea, go tell that to PanAm, WorldCom, Enron and Polaroid, buster. "Tell someone that cares" isn't such an effective marketing strategy any more.

Anonymous said...

I can only assume Sony bought off Netflix, because no other factor could influence a company to make such a customer unfriendly decision. I only bought HD-DVD because it was supported by Netflix, and I'm betting Sony knows a lot of people thought likewise.

The email made me want to laugh. "In order to provide the best selection of high-definition titles for our members, we have decided to go exclusively with Blu-ray." There is no logic whatsoever in that statement. If Netflix gave a damn, they would support whatever format customers wanted.

Disappointed subscriber since 1999

Anonymous said...

The end of the format war leading to cheaper hardware and software? I kinda doubt it. I can't think of a company or cartel that lowered prices after the competition folded.

Even with the lower industry support, I decided that the low price of the HD-DVD players coupled with the titles available from Netflix justified the upgrade from my trusty old DVD player. So I bought an HD-DVD player and joined Netflix. Blu-ray isn't worth the money, at least not now, and at twice the price of HD-DVD, probably won't be for a while.

Less than a week after I joined, Netflix starts pulling support. Oh, well, if I bought an Edsel, might as well patronize a company that supports an Edsel.

Hello Blockbuster Online! Goodbye Netflix!

Anonymous said...

I am appalled! I want Netflix to offer every format! I have a VHS player and the fact that VHS tapes are still being made and Netflix isn't offering them to me!!! Sickening...

BTW... Reed Hastings is on the board of directors for Microsoft. Ever heard of the XBox360? Yeah it is also an HD DVD player. HD DVD's are being fazed out. The two remaining studios that are still making HD DVD's will be fazing out making them by the end of the year as well. It is the new Beta Max.

Anonymous said...

NF is the last company who i thought would do this to the customers. Many were using the HDDVD service.Now you go and do wrong to some of your most loyal customers. I would understand if no one was renting that format but by the look of my hddvds with long waits that was not the case. Bad decision...A very frustrated and upset customer

Heidi said...

From a business standpoint, it makes no sense for *any* business to buy/sell/support DRM'ed content.

First of all, encryption only works if *both* parties know the "key" to make it work. I have no idea what the code does (and since I don't buy DVDs, it's of no interest to me to google it), but likely it somehow enables you to unlock the DVD YOU LEGALLY BOUGHT and play it on your computer.

So, for an analogy (search google and you'll find someone on CNet came up with this before me =) His article was called "Why DRM Doesn't Work), DRMing doesn't work because it's like taking chalk and drawing a square on the sidewalk, putting money into that square and then telling people they can't access it (when quite clearly, yeah, they can).

DRM'ing is a *great* way to lose money. You treat your users like pirates. You make them have to pay the latest gadget that will have the ability to play them (and the gadgets change as people "crack" the code. Or you know, *find* it).

DRM'ing is a lot like closing the gates after all the cows are gone. If you *bought* the DVD, you're obviously not the one who's copying it, now are you?

DRMing and other crap corporations use only makes them shoot themselves in the foot. Why? Because Pirates get stuff for free. They have nothing to lose.

Say you install a game to your computer. It installs malware that ruins your computer/nags you a lot mentioning you're a pirate. The Pirate at this point will accept the fact that s/he is a pirate and go on a search to find a solution to the problem.

The Legitimate customer will call up your Tech Support and complain about how you ruined their computer and how they're a paying customer blah blah woof woof (you get the idea).

*That* is why Pirates will win. Because pirates don't go into the deal expecting it to *work* They accept that there's a possibility that it *won't* work.

Legitimate users have a lot more to risk, since some games, you're unable to return (again, due to the company trying to keep people from pirating it).

The problem these days, though, is that because you can copy a file an infinite number of times, it's no longer worth anything. Supply and Demand.

The more there is of something, the less the demand for it. For example: all the Britney Spears news stories. Germany in WWI (they over-manufactured their money). Paris Hilton. Sequels.

I'm not really sure what else applies (because I've yet to *completely* grasp the full concept of supply and demand, but I'm sure NetFlix knows (though I don't blame them if they don't tag in ;) The Walls have eyes who have lawyers and all that).

Btw: I *highly* applaud your business model, but noted that under "Jobs" you had no where to apply. I'm currently looking for a job and was wondering if you're even hiring currently, and if so, what positions are you looking to fill?

Anonymous said...

I am quite unhappy with the decision Netflix has made -- but what can I do? I'll probably end up canceling my subscription until I cave in and buy a blu-ray player. That'll probably be months, though. Bummer :(

jeld said...

rick said...
@Jeld.

Yea, go tell that to PanAm, WorldCom, Enron and Polaroid, buster. "Tell someone that cares" isn't such an effective marketing strategy any more


Seriously did you just use the word " buster "

HPL said...

Although I understand the business decision to ditch HD-DVD and go exclusively Blu-Ray, it is disappointing to me that Netflix won't at least keep up with whatever HD-DVD offerings come down the pipe. I picked Netflix over other rental models because, in my naivete, thought this company chose the side of movie-lovers and prided themselves on offering product we couldn't get elsewhere. I am sticking with Netflix for now, even though this particular change is short-sighted and heart-breaking to those of us who continue to enjoy HD-DVDs.

kappen said...

I canceled my account this morning. I only had it for the HD-DVDs. While I could care less which format wins and buying a new player isn't that big of a hassle. I won't be buying one that will be made obsolete in 6 months because the Blu-ray spec isn't solid, and no the PS-3 doesn't count as a player. It might be nice for the kiddies but I want a true stand alone player. Maybe once profile 2.0 players are common I will look at my decision again until then an upconverted DVD player will be fine and since regular DVD's are so cheap netflix is not needed.

Scott Rose said...
This post has been removed by the author.
Scott Rose said...

Oh god, anybody who is upset by Netflix's decision is just showing how ignorant they are on so many different levels.

First of all, there was a FORMAT WAR going on that did not yet have a winner -- most consumers were holding off on HD purchases until the format wars were over. Just because you decided to be an early adopter and make a risky investment in your Beta machine (oops, I meant HD-DVD machine) before the format war was over doesn't mean that the whole world now has to support your dead technology.



Second of all, none of the studios are going to be putting their movies on HD-DVD, so complaining to Netflix about this accomplishes absolutely nothing. What HD-DVD movies is Netflix going to carry, if there aren't any HD-DVD movies that are going to be made?



Third, Netflix is a business, with extremely high expenses, that is trying to be profitable. By eliminating the dead technology known as HD-DVD from their inventory, they can focus on being even more profitable.



And finally, HD DVD is backed by Microsoft -- one of the worst software companies on the planet -- which is a reason in & of itself to abandon the technology.

Granted, it is truly annoying that the movie studios are treating all of their customers like thieves by standardizing on a DVD format that has DRM in it, but this is not Netflix's fault. This is a war that we must wage against the movie studios, not against Netflix.

If you are upset, you are targeting the wrong company. Target the movie studios instead with your complaints!

Anonymous said...

1. Anyone who is angry about this should only be angry at themselves, like selecting a cheap product -- maybe on sale! (car, TV, toaster), taking it home, finding it breaks easily or doesn't work as promised, and being angry at the retailer. You chose early. You chose poorly. This is what everyone knew could happen if you moved too quickly. Only someone with limited forethought could be shocked by this news. Stop pointing fingers and take responsibility for your own actions.

2) Quit Netflix? Where are you going to go? The whole point is NO ONE is going to have HD-DVDs pretty soon. Blockbuster? Didn't they already do what Netflix just did, but months ago? Be mad at the industry, certainly. But this is just not a Netflix issue.

Anonymous said...

Funny. If Netflix had selected HD-DVD over Bluray, there would have been a cry throughout the land that CEO Hastings, on the board of Microsoft, was in Gate's pocket, making a stupid decision because of his connection there.

Now that Hastings has selected against Microsoft's invested interests, I'd imagine people should be admiring of his backbone (little guy stands up to big corporate parent to do 'what is right'). But no one says this. They only think Netflix is in Sony's pocket.

How about skipping the conspiracy theories and trusting for a moment that Netflix dispassionately evaluated the options and made the best decision for their business and customers - even if it upsets some, it's the best for the rest of us. Or is this too obvious?

Anonymous said...

Dear Netflix,

Your decision to discontinue HD-DVD's is a logical, yet poor one. Simply put: You are abandoning a segment of your customer base.

Many of us can't afford BluRay players. Your customers were extremely appreciative of your support over both formats because you gave us a choice. Why you couldn't continue to do so as another subscriber said and carry both formats until the end is beyond me. Toshiba isn't going to simply "throw in the towel". They are not. If they do, then fine, you'll have advanced warning, but in the meantime you should have stayed neutral.

This decision will have an equal an opposite reaction with many of your HD Disc customers. We are going to cancel our subscriptions. Your decision may prove to be profitable in the future, but the short term is going to leave many of your loyal customers at odds with where to go.

You did not have to give in. You could have waited it out. You showed your cards too soon to many of us and now you will pay the price. Thank God there's competition in this country.

Signed,

Ticked-off subscriber!!!

Anonymous said...

Your decision may prove to be profitable in the future, but the short term is going to leave many of your loyal customers at odds with where to go.

Then you certainly understand that the goal of Netflix is to make money in the long run. Not to make a few customers happy at the expense of its stock price.

Anonymous said...

I picked Netflix over other rental models because, in my naivete, thought this company chose the side of movie-lovers and prided themselves on offering product we couldn't get elsewhere

Yes, that is very naive to think that a company would choose to lose money so that movie lovers could enjoy their movies. They are in the business to make money. Diddling around with both formats was not an economically sound practice, so they went with the winner of the format wars.

Anonymous said...

Quote Mr Sarandos "While only a portion of Netflix subscribers have elected to receive high- def DVDs, a majority of those subscribers have chosen Blu-ray over HD DVD."

There's why the decision for Blu-Ray was made.

Anonymous said...

Well, while all of you videofiles fall on the floor, kicking and screaming that netflix did this, I'm still enjoying my movies via standard DVD. It's called WAIT A FEW YEARS UNTIL THE DUST SETTLES(can you say BETAMAX?).

Anonymous said...

Bluray is not comparable to VHS, in fact $ony was Beta. Bluray is Circuit City's DIVX format that fought to destroy DVD. At one time, 4 out of 6 major studios were DIVX only. DVD still WON the format war despite greedy studios.

I cancelled my Netflix account last night after I received the email notice. I joined Netflix after I bought my Toshiba HD-A3 - to rent HD-DVDs. Any company that is too stupid to deny their customers what they want deserves to lose them. You will get no more of my money.

Even though my account is paid through next month, you cut off my viewing of video online. That's another statement of how you could care less about your customers. Shame on you!

Anonymous said...

Well, it's a sad day when an on-line rental store that prides itself on carrying just about everything is going to totally blow off HD-DVD customers. Well, I shortly will have no use for the rental service so this is one HD-DVD customer that will be leaving Netflix.

Former loyal HD-DVD Netflix customer

machinegunn said...

The reason I like Netflix is that it provides a good service at a great price. Knowing that it operates in reality, I understand that the company has to make smart business decisions to be able to give customers such a value. I think this is the right business decision with so many of the major studios siding with BR. A format war means there will be a loser, and adopting early means dealing with the risk of losing. I totally support the decision and find these people that seem personally affronted laughable.

Anonymous said...

Netflix dropping HD-DVD is a disgrace.

I have canceled by netflix membership.

Anonymous said...

Wise business decision. I'm hoping this reduces the wait for blu-ray movies because now you won't have to supply two hd formats and can stock more blu-ray discs. The wait is way too long now and we've thought about leaving netflix because of this. But we'll give it some more time.

Anonymous said...

Scott Rose: Oh god, anybody who is upset by Netflix's decision is just showing how ignorant they are on so many different levels.

...and continues on in this condescending way. Scott, you might be a little more effective if you didn't treat people annoyed by Netflix's decision as idiots.

Even if HD-DVD is a dying format, that doesn't mean that its users shouldn't get the most they can out of its players. There are still 400+ titles and more are coming. Netflix made a business decision to stop catering to that part of its clientele. Fine. That part of its clientele still has alternatives and can take its business elsewhere. It's that simple. Ciao!

Jordan Bradford said...

I am very displeased that you've decided to phase out HD-DVDs, and I am seriously considering canceling my membership.

Given Netflix’s economies of scale, the cost to carry the library of HD-DVD titles that are available is insignificant. Combine that with the fact that the whole idea of a Netflix subscription is that if a movie is available on disc, Netflix has it and the subscriber can keep it for as long as he wants. You have no excuse for suddenly deciding not to carry certain movies.

High definition movies in either format cost $20-40, twice as much as standard definition DVDs. That’s a ridiculous price point, one at which I’m not going to purchase a lot of HD titles. Being able to rent these movies from Netflix instead of buying them was part of the reason I chose to get an HD-DVD player.

I’ve been a customer for over five years and have never had any complaints until now. Great job, Netflix, for angering me enough that I want to cancel my subscription.

Anonymous said...

I just signed up for Blockbusters's online service and will be dumping Netflix today.

I own both HD DVD and Blu-ray players. Why in the living h e double tooth picks would I want to stay with a company that offers me only two choices, when there is a company out there that is still willing to offer me 3 choices?

If/when Blockbuster drops HD DVD, what would my incentive be for switching back to Netflix? There wouldn't be any incentive at at that point in doing so. Right now, there is an incentive to take the trouble of dropping Netflix and signing up with Blockbuster -- Blockbuster offers me more choices.

So long Netflix, it was short but not sweet enough to keep my business.

Anonymous said...

If/when Blockbuster drops HD DVD

I guess he missed the memo. BB has already pledged to Blu-ray

Anonymous said...

Finally some headway is being made in this format war. Didn't care which way it went but looks like HD-DVD is dead and Netflix might have put the final nail in the coffin. Glad I waited, and I think this is a great decision for netflix. Now, no wasted money on a dieing format.

Anonymous said...

Did you guys really think that both formats would live forever? And do you guys really think that Netlfix continuing to support HD-DVD is a sound financial decision? And do all 130 of you threatening to cancel your account think it will make them change their stance? Get real guys.

Anonymous said...

I completely support this decision. There is no reason for Netflix to continue to support a format that will be obsolete within the next year. All the complainers are bitter because they invested in the wrong format. They fail to realize that eventually they will not be able to get HD-DVDs ANYWHERE. Continuing to stock HD-DVD makes as much sense as stocking Beta or Laserdisc. Blu-ray is the superior format, and even the deep pockets of Micro$oft can't save it at this point. Netflix has simply come to the same realization as Best Buy, Warner, and many other companies across the world: Blu-ray is the future of High Definition Media. Deal with it!

Anonymous said...

As a new member this is really disappointing! One of the reasons I joined was the availability of HD-DVD selections. There have been way more HD-DVD players than Blu-Ray players sold. Sony was able to buy off the studios, but that doesn't mean that Netflix has to stop buying new HD-DVD's this year. The customers with those players will keep them for years.

Brian said...

I am very disappointed! Sounds like Netflix has been bought off by the Goliath known as Sony. One of the reasons I joined Netflix was the availability of HD-DVD. Now I'll have to consider canceling my Netflix subscription.

Malcolm said...

TO THOSE STILL ANGRY AT THE REMOVAL OF THE 'old' NEW RELEASE PAGE!!!

Last week I cancelled my Netflix account, and 11 other people were prepared to do it as well. Well golly jeepers, they notified me at the end of the call "oh by the way" and showed me this :

http://www.netflix.com/AllNewReleases?lnkctr=NavAllNewReleases

Yup it's still there, and thanx to some savvy phone rep, Netflix still has 11 accounts (4 of which are the highest end accounts).

If that link doesn't take you there it's easy: When you are on community blog main page, it's to the right , directly under the red Netflix logo 'DVD's releasing this week'. It takes you right to the old page.

LET NETFLIX KNOW BY PHONE YOU ARE HAPPY THE OLD PAGE IS STILL THERE, AND THAT YOU WILL CANCEL YOUR ACCOUNT IF IT DISAPPEARS! When I spoke to the rep she said it 'probably' wasn't going anywhere, that they ARE indeed getting many complaints.

So know it's there, use it, and call the customer service number to let them know it's wanted.

Yes I know this has nothing to do with this topic, but since the blog continues to ignore the issue I will post it and repost it in every blog. Sue me.

Anonymous said...

Yes I know this has nothing to do with this topic, but since the blog continues to ignore the issue I will post it and repost it in every blog. Sue me.

Yes, you are correct it is off topic! And no this blog has not continued to ignore the issue. The RTW page has its own blog posting - post it there. What is your complaint? Are you complaining that the RTW page is still up?

sam said...

It's a wonder that Netflix manages to stay in business with all of the completely idiotic decisions they make. Dropping support of HD-DVD, no instant watching on Mac, removing the RTW page, ....

Rabble, rabble, rabble.

Anonymous said...

Let's set the record straight. SONY DID NOT PAY OFF ANYONE. The only payoffs given out during this war were from Microsoft/Toshiba to Paramount to go exclusive last year, otherwise the war would have already ended. Netflix made the only smart business decision there was to make. YOU invested in the wrong format, not Netflix.

Nat B. said...

I was a Netflix customer years ago and ended up switching to Blockbuster b/c they had a great promotion running. Since then their prices have sky rocketed. We decided to go back to Netflix not only b/c of the price of service but b/c you offer HD DVD (like no one else!). We went out and bought an HD DVD because Netflix offered that format and the system was cheaper than Blu-Ray. Here we are 2 months after purchasing the system and now Netflix is no longer going to carry that format! BOO ON NETFLIX! Netflix was the only company offering these movies, you had the upper hand by offering all formats!!!! Thanks for making me feel as though I wasted my very hard earned money. As a consumer, we can't ever win!

JJZ said...

I'm not so surprised, but it's too bad about abandoning HD-DVD. If it will help them buy more copies of bluray movies, it might be better overall, because I did get a bluray player not that long ago, and the waits on pretty much all the bluray movies are pretty comically large.

2McAbre said...

You know I just have to go there. This degree of whining and crying and saying goodbye reminds me of the whole, what was it? Oh yeah, new release page changing.

Look people, nobody strong armed you into buying an HDDVD player, irregardless of what anyone says, when a technology is "NEW" and there are differing factions "FIGHTING" to dominate the market, there will be winners and there will be losers.

When it boils down to the bottom line, the choice to buy an HDDVD player was made solely "To Keep Up With The Jones" and be able to have conversation pieces hold bragging rights on. And please hold the mustard folks!

I guarantee that each and every person who will say they did NOT buy an HDDVD so they could brag are full of BS, and have bragged at least once, and reveled in the Ooo's and Ahh's received from those you did.

Netflix is a business, its clear which format will win, better or worse is a moot point. Just like VCR and BETAMAX, one format dominated the other, and those who still have betamax players in their attics STILL reminisce about how unfair it all was.

Besides, if you own an HDDVD player it will STILL up convert standard DVDs for many years to come, and by then most content will be broadcast over broadband anyway. Without the need of players at all.

With that said Im certainly not going to cry foul and run screaming like a little baby simply because Netflix made a Sound and Logical business decission.

Anonymous said...

The post by Jordan Bradford about sums up my feelings.

I got a HD-DVD player for my birthday only one month ago. The giver, my significant other, decided to buy it *because* Netflix offers the best selection of HD movies to rent. Our local rental store only offers a slim selection of available HD movies. So needless to say, we are both disappointed that Netflix has made this decision.

It seems rather odd considering that HD movies have been on wait. Clearly, they are in demand. Why alienate that customer base?

I enjoy Netflix too much to threaten to cancel, and I will continue to rent standard DVDs... That said, Netflix has lost points in my book, which probably doesn't count for much in the business world, unfortunately.

Todd said...

Hey 2McAbre,

Don't you look at anything with a critical mind? Aren't you concerned that Sony is becoming a large monopoly which will eventually make every consumer's prices go up? Do you want a large, international corporation to decide for you what version to watch? It's a fact that Sony has a hand in everything from Making the movies all the way down to burning the disk. I guess we aren't smart enough to make our own decisions and we need Sony to do it for us through manipulation. This is the same tactic that made Microsoft the only REAL software company and why you now pay large amounts of money for the software. These issues are much more complicated than just a business decision by Netflix. If next year Sony decides to drop blue-ray for something else and there is no other competition, then what? Do you stop watching movies? OR comply with Sony since they now better than the consumer. I guess what we need is ONE company providing ALL THE ENTERTAINMENT for us. This way we don't have to struggle with making any choices for ourselves. Anyway, this is my rant. Netflix will lose customers over this. I am one that came to netflix because of the hd dvd movies available. Let's hope Sony doesn't decide to also get into the dvd rental business or Netflix may be in trouble.

my .02 worth...
tcmoore

scottwouw said...

I have both an HD-DVD player and PS3. However, I am still disappointed by this decision for a couple of reasons. First, I believe HD-DVD is more consumer friendly (costs must less); second, Univeral and Paramount are HD-DVD. So even if you have a Bluray player, you will not be able to get hi-def movies from them. Universal and Paramount are GIANT movie studios. Universal has a huge backlog of movies. Now I can only rent SOME movies in HD.

All those people that support Netflix decision, please understand that a lot of movies will no longer be available to rent in hi def.

Your decision would have made more sense if ALL studios released in Bluray, but they don't. Until that day, I urge you to continue with both formats. I'd pay a higher subscription rate if necessary, unfortunately I was not given a choice.

Anonymous said...

By the way, people who are rebuking posters that are switching to Blockbuster...

Although Blockbuster doesn't stock HD-DVD in stores, the online service DOES.

At the end of my billing cycle I am considering switching to Blockbuster so I can continue to use my month-old HD-DVD player.

Robert said...

Netflix would obviously have been much better off just quietly phasing out HD-DVD's in step with the marketplace itself (and we can be sure they have better intel on the subject that any of us), but, as others have said, it was inevitable sooner or later - and being the steely-eyed pragmatists that are (and need to be to stay competitive), they opted for sooner, yanking off the band-aid in one swift motion, as recommended.

But shouldn't they at least be applauded for taking the trouble to let us know the moment they made the decision so that we could plan accordingly? Especially after we yelled at them (and rightly so) for sneakily removing the RTW page in the dead of night. Isn't this a case of dammed if you do and damned if you don't?

But that doesn't mean that I don't feel bad for all those that have gone out and bought expensive HD players. Why are they being taunted and mocked when the industry could so easily have gone the other way, revealing them to be far wiser and more prescient that any of us fence straddlers?

AngelMonkey said...

I don't understand the sentiment that Netflix is "no longer supporting a segment of their customer base." Anyone with an HD-DVD player can still rent and watch movies on DVD. Just because you "can't afford a Blu-Ray player" doesn't mean you can't still enjoy the Netflix service. Standard DVD is the great majority of Netflix's current offerings anyway. You haven't been abandoned at all... your HD-DVD player has been abandoned, and you should have known when you purchased it that it may become obsolete very soon.

I, personally, am a complete snob when it comes to picture quality. As such, it has been very difficult for me to be patient and NOT purchase an HD player until after the format wars ended. In the meantime (and since 2000) I've been a loyal and completely satisfied standard-DVD Netflix subscriber.

I'm thrilled that the format war is coming to an end. I look forward to the purchase of my Blu-Ray player in 6 months or so when I know the dust is really settled.

Having one format will be best for consumers because it will bring down the cost of hardware and software. Why? Because companies will no longer need put money into producing hardware/software for two different formats, neither of which was guaranteed a future. It will allow Netflix to put its entire HD-buying budget into getting more supply of the chosen format's titles.

And seriously, to people who say they will no longer be a Netflix customer because they chose to drop HD-DVD... will you now refuse to ever see another Warner Brothers film? Will you stop watching movies altogether when HD-DVD is gone for good?

People may disagree on which format is best, but having two formats hurts everyone -- studios, rental companies, and consumers alike.

AngelMonkey said...

Oh... FYI. I had a LaserDisc player. I was sad to see it go, as DVD doesn't even come close to the beautiful image quality LaserDisc provided. I was upset to see the switch to DVD for personal reasons, but I understood the business reasons behind the industry decision. I took a risk when I bought my LaserDisc player and when I invested in my LaserDisc collection (Which was expensive at $40-$60 a pop!)... but that was my risk and my responsibility. I don't blame the studios for making my collection obsolete.

... I still watch my LaserDiscs on occasion. :-)

Anonymous said...

this is what you get for being an early adopter! I'm not shedding a tear for any of you rich idiots who shelled out early for HD.

Anonymous said...

This decision for Netflix to not support HD-DVD is premature and a Public Relations mistake.

The drop in price of the Toshiba HD-DVD players puts it in the price point of up-converts. I purchased one just a month ago and was happy to get my movies in this format and Blu-Ray was not an option at their prices. I believe Toshiba still has the chance to win this war by bringing more HD to the masses.

Netflix please step up and admidt you made a mistake and retract your decision.

A long time Netflix subscriber who WAS very happy PRIOR to this decision.

Shaun said...

I think that the companies that stand up and choose one format should be applauded as industry leaders. It's plain to see that continuation of this format war will only harm the transition to HD content.

For every one person screaming bloody murder because they adapted, early, the loosing format there are many more that have been quietly waiting in the wings hoping that the HD format war will end so that they can get on with it.

It's a bitter pill for the vocal minority, but, we need companies like Netflix, Best Buy, Warner who will take the helm and drive the industry instead of waiting around to see what direction the prevailing winds take us.

Hopefully, the HD DVD camp will look at the current landscape, see that continuing the format war will only harm the industry and bow out gracefully.

Ultimately, this variation on the format war bears little difference from the Beta/VHS conflict, or any other time when the industry attempts to change or introduce a new element to drive itself forward. It was never in question that a single format would win; it's just not economically feasible to support multiple formats. A singular format means improving one technology, it means bringing the price down on a single, agreed upon element, and it means that this specific tech will be improved at a fast, solid pace. This is the best move for the industry as a whole.

Umbrae said...

I like others joined Netflix after buying an HDDVD player because Netflix supported the format. Like others, I will also be leaving Netflix after my HDDVDs are converted to DVDs. With the New Release fiasco and now this, Netflix has proven it is not looking out for its customers.

I am fine with a format war but this has not been decided by consumers. It has been decided by bribe-lined pocket books.

Mike said...

"I purchased [an HD-DVD player] just a month ago and was happy to get my movies in this format..."

And you'll still be able to rent them till the end of the year or so. Plus you'll be getting a considerably enhanced image quality (1080 pix vs 720) for regular DVD's as well.

Life can certainly be tough, but generally because we're being thrown out of our home, or having bills for major surgery turned down by the insurance company we've been paying $2,000 a month to. So let's please try to keep these things in a little perspective, folks.

Anonymous said...

All those people that support Netflix decision, please understand that a lot of movies will no longer be available to rent in hi def.

Your decision would have made more sense if ALL studios released in Bluray, but they don't


In 6 months all studios will release in Blu-Ray

Anonymous said...

In 6 months all studios will release in Blu-Ray.

I'm in no position to challenge this, and would welcome it if it turns out to be true, but it would be great to have a reference or link for these kinds of 'statements of fact' that people seem to pull out of thin air.

Anonymous said...

I thought netflix was for Movie lovers. If Paramount,Dreamworks and universal are HDDVD exclusive that means i can only get certain movies on HDDVD. Why is NF doing this. This is very upsetting. I am seriously thinking about dropping NF.
NF should cater to the customers not the studios. If we are renting HDDVD, and I know we are because they are all "long wait " why would you stop renting them.

From a Upset "Valued" customer.

saazinator said...

Netflix, this is a cop out to all your subscribers who have been using your service to get HD-DVD movies. While HD-DVD is in the minority, the fight is not over on a number of fronts. Might as well switch to BlockBuster now. At least I can get service from them on the weekends. You blew it Netflix!!

Anonymous said...

I'm likely to no longer be a customer after this horrible decision.

What really peeves is that, as a major purchaser of DVD's, Netflix could have advocated for customer choice. Instead they give the appearance of laying down for the studios. The fact that Sony is a movid studio and creator of the standard and benefits from hardware sales puts a really unsavory spin on the format war.

The fact that 2 out of the last 4 HD-DVD's that Netflix shipped me were unplayable is now salt on the wound.

They know how many customers prefer HD-DVD & how many select blu-ray, so removing HD-DVD doesn't improve availability for anyone - they simply shift their purchases away from pissed-off HD DVD customers to some combination of blu ray customers & regular DVD customers.

Lots they aren't telling us about the thinking behind this. Terrible PR.

r3v said...

As someone who's been saying out of the format war till it's over, allow me to say:

Cheers, Netflix. Good on ya. Thanks for NOT being "format neutral". Thanks for having the forsight to see that the format war is BAD for the consumer. I'd rather Netflix make a tough decision now that's business smart and stick around than try to appease everybody.

r3v (member since 2000)

Anonymous said...

Subject: User Suggestion
Message: Just to let you know, I will be canceling my account at the end of this month due to your irresponsible and customer hostile decision to drop HD-DVD, which is the only reason I have this account in the first place.