Originally Posted by TheMoose
It makes even more sense that they see Toshiba has done nothing substantial to reverse the sinking fortunes of hd-dvd & decided to get out now instead of stretch it out longer.
They know one format is better for everyone & it appears they are sending Toshiba a signal.
1. FLOOR SPACE AT BEST BUY COSTS MONEY. This is an advertising cost.
2. NetFlix has no reason financially to back either party. The absurd arguement they have to buy for 3 formats shows a total inability to count to 3.
3. The stupidest arguement is "to get out now," when it's a BUSINESS. This isn't some fan club for PS3. This is a business that has to make money. It's far more profitable for NetFlix to drag it out longer to recover expenses. Which is what they're doing. They will continue to rent out HD-DVDs they just won't be buying any new replacements.
Block Buster received a deal that lowered costs of BD discs for them. Net Flix got the same deal which made it financially feasable for them to drop a format.
You won't see it advertised because I have never known any company to advertise all of their business practices and almost never their contract negotiations.
What I don't get is why the PS3 crowd thinks it's "Dirty Business," to do good business. NetFlix will be ****ing off less than 2% of their customer base of which they don't think they will lose many. NetFlix made the right choice, and Sony was smart to offer it.
Plus NetFlix was told that Universal would be going "blue," very shortly.