Netflix to Stop Renting Movies on HD DVD Format

[Lotus]

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.

[Lotus]

Originally Posted by glocksout

Lotus again makes more unsubstantiated claims about payoffs.

Right. Because the BDA got an exclusive contract with them they offered them nothing in return. Floor Space at Best Buy just became free too. You're right. They both did absolutely horrible business. That makes sense.

I don't understand the PS3 mentality that offering money or deals for exclusive partnerships is dirty business involving "payoffs."

[PRO-630HD]

Originally Posted by glocksout

Lotus again makes more unsubstantiated claims about payoffs.

Hey guys why did target go blu SAP exclusive. The BDA paid them off. Paid or Talk who are bluray inseiders will admit that. It is a business.

[glocksout]

Originally Posted by 1more4HDDVD

But his arguments make sense. Why would both companies announce on the same day, the beginning of February nonetheless? Something smells rotten here.

The Blockbuster / Target payoff of last summer is strikingly similar.

He didn't make an argument, he made a baseless claim with nothing to back it up.

There was no Blockbuster payoff either. There was also no Target payoff.

You see how people spin things? Target went to Sony about the endcap. Sony paid for it, but they didn't pay them off. That was also not in the summer, it was in the Holiday run-up.

There were no reports of a Blockbuster pay off at all. Pure speculation.

[glocksout]

Originally Posted by Lotus

Net Flix got the same deal which made it financially feasable for them to drop a format.

Proof?

Originally Posted by Lotus

Plus NetFlix was told that Universal would be going "blue," very shortly.

Proof?

You make a lot of claims. They could very well be true but they're all speculation and you talk like it's gospel truth.

[glocksout]

Originally Posted by Lotus

Right. Because the BDA got an exclusive contract with them they offered them nothing in return.

What contract?

Originally Posted by Lotus

Floor Space at Best Buy just became free too. You're right. They both did absolutely horrible business. That makes sense.

Why not? Blu-ray has over 70% of the hardware revenue. Best Buy certainly makes more off of Blu-ray than they do off of DVD. They upsell to a lot of products without having to be paid off for it.

Next you'll tell me those bluetooth headsets they push with every cell phone is due to a payoff from random companies.

Originally Posted by Lotus

I don't understand the PS3 mentality that offering money or deals for exclusive partnerships is dirty business involving "payoffs."

First: What PS3 mentality? Were we talking about the PS3? You keep bringing it up.

Second: Who said anything was dirty? You were implying it was back-room deals that caused these things with no proof. You did more than imply, you stated as fact these things. You have no proof.

Basically when you have no proof it's called "hearsay" and doesn't mean anything.

But you're also flawed to think that businesses can't make their own decisions based on market trends and future sales forecasts. Obviously these companies dont' know how to do these things and they rely solely on cash handouts.