BEVERLY HILLS, Calif. - Netflix Inc., the world's largest online movie-rental service, said on Monday that it is stocking only Blu-ray high-definition DVDs, citing "a clear signal from the industry."
The announcement follows four of the six major movie studios' decisions to publish high-definition DVD titles only in the Sony-developed Blu-ray format.
Netflix plans to phase out the alternative high-def disc format, Toshiba's HD DVD, by the end of 2008. The service will rent out its current HD DVD inventory until the discs' natural life cycle takes them out of circulation.
Netflix has stocked both formats since the first high-definition DVDs hit the market in early 2006. The company said it now makes sense to move to a single format because the industry has stated its preference for Blu-ray.
"The prolonged period of competition between two formats has prevented clear communication to the consumer regarding the richness of the high-def experience versus standard definition," said Ted Sarandos, chief content officer for Netflix. "We're now at the point where the industry can pursue the migration to a single format, bring clarity to the consumer and accelerate the adoption of high-def.
"Going forward, we expect that all of the studios will publish in the Blu-ray format and that the price points of high-def DVD players will come down significantly. These factors could well lead to another decade of disc-based movie watching as the consumer's preferred means.
"From the Netflix perspective, focusing on one format will enable us to create the best experience for subscribers who want high-definition to be an important part of how they enjoy our service."
The majority of Netflix subscribers who have chosen to receive high-definition DVDs have chosen Blu-ray over HD DVD.
When Warner Home Video announced in January that it will release high-definition titles only in Blu-ray by the end of 2008, many viewed the decision as the death-knell for HD DVD.
Of the major Hollywood studios, only Paramount and Universal remain in the HD DVD camp. Sony Pictures, Twentieth Century Fox and Buena Vista all endorse Blu-ray exclusively.
