Netflix Goes Blu-ray Exclusive; Best Buy Leans That Way

In another bellwether moment in the waning days of the format war, the popular DVD rental-by-mail service Netflix announced Monday that it is going exclusively with the Blu-ray Disc format for high-definition, the AP reported.

Meanwhile, Best Buy last week said that it will now “recommend” Blu-ray to its customers, although the retail giant stopped short of going exclusive. This means that starting in March, Best Buy will “showcase” Blu-ray products, while still continuing to carry players and movies in the HD DVD format.

Best Buy said in a statement that because consumers have told them to “help lead the way,” Best Buy has decided to designate Blu-ray as “the preferred format.”

“From the Netflix perspective, focusing on one format will enable us to create the best experience for subscribers,” Netflix said in a statement. The company did say, though, that hi-def rentals account for a small percentage of its overall business.

Netflix’s decision could be important, as it recently reached an agreement with LG to develop a DVD-rental set-top box.

Meanwhile, Best Buy has begun offering a free HD DVD player, with the purchase of a certain audio system, the Web site Punchjump.com reported Monday.

The deal, which was advertised in a circular over the weekend, will include a Toshiba HD-A3 HD DVD player for free, with the purchase of a certain Yamaha/Klipsch audio package, which has an advertised price of $899.97. In addition, Best Buy is continuing to offer buy one, get one free promotions on numerous HD DVD movie titles.

As Toshiba-backed HD DVD continues to struggle to compete with the rival Blu-ray Disc format, deep discounts on players have become the rule, with news this week of prices falling as far as $112 at one Chicago-area Circuit City.

Does this mean the format war is over? Talk about it in the E-Gear forums.