Blockbuster Chooses Sony's Blu-ray Over Microsoft's HD DVD

Includes: BBI, MSFT, SNE
by: Jonathan Liss

In a boost for Sony, Blockbuster says it will carry exclusively Blu-ray high definition DVDs, over competing format HD DVD at 1,450 of its 1,700 U.S. locations. During a trial run at 250 Blockbuster locations, 70% of consumers chose Blu-ray formated DVDs over rival Microsoft supported HD DVD. bd foot "Consumers are sending us a message. I can't ignore what I'm seeing," said Blockbuster merchandising VP Matthew Smith. The move could have ramifications in the video-game-console battle; Microsoft's XBox 360 uses HD DVD formating, while Sony's PS3 utilizes the company's Blu-ray technology. Tech website Engadget believes the deciding factor was that Blu-ray-only hits like Spiderman and Pirates of the Carribean outmatched HD DVD exclusives. Blockbuster will continue to offer both formats in the 250 stores it has been conducting testing of the two formats.

Sources: Press Release, AP, Reuters, MarketWatch
Commentary: Blockbuster Chooses Blu-ray: Is the War Over?Another Victory For Blu-ray, Courtesy BlockbusterHD-DVD vs. Blu-Ray Sales
Stocks/ETFs to watch: Sony (NYSE:SNE), Blockbuster (BBI). Competitors: Toshiba (OTCPK:TOSBF), Matsushita Electric (NYSE:MC), Koninklijke Philips Electronics (NYSE:PHG), Microsoft (NASDAQ:MSFT), Netflix (NASDAQ:NFLX)
Conference call transcripts: Sony F4Q06, Microsoft F3Q07
Related: Sony Blu-ray

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