The Wall Street Journal-20080212-Business Technology- Best Buy- Netflix Back Blu-ray

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Business Technology: Best Buy, Netflix Back Blu-ray

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A WSJ News Roundup

In another move that appears to cement Blu-ray's position as the next-generation format for DVDs, Netflix Inc. and Best Buy Co. are throwing their support behind the discs.

The moves for Blu-ray, developed by Sony Corp., don't bode well for the rival high-definition format, HD DVD. Toshiba Corp., which largely developed that format, is reeling from a blow from Time Warner Inc.'s Warner Bros., which had been supporting both formats but said in January that it would support only Blu-ray.

Toshiba has been running an extensive marketing campaign, including price cuts and steady advertising, to keep consumers interested in HD DVD, but it did not make promises about the future of its format after yesterday's news. "Given these developments, Toshiba will continue to study the market impact and the value proposition for consumers," a spokeswoman said. She called Best Buy's decision "unfortunate."

The decision by electronics retailer Best Buy, the U.S.'s No. 2 DVD retailer and No. 1 retailer for next-generation discs by sales, should encourage other retailers to take similar steps. A spokeswoman for Wal-Mart Stores Inc., the No. 1 DVD retailer, said it is undecided.

Best Buy said that beginning next month, it will showcase Blu-ray hardware and software products in its retail and online channels in the U.S., but it will continue to sell HD-DVD products.

Walt Disney Co., News Corp.'s Fox, and Sony Pictures back Blu-ray exclusively. Universal, owned by General Electric Co., and Viacom Inc.'s Paramount unit back HD-DVD.