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HD DVD RIP - February 15, 2008

I think the fat lady just sang. According to TWICE, Wal-Mart has decided to support Blu-ray Disc exclusively come June and will begin the gradual phase out of HD DVD from its 4,000 Wal-Mart stores and Sam's Club outlets in the U.S. almost immediately. "The change will take place quickly over the next several months whereby the retailer will phase out HD DVD offerings and reorganize shelf space and by June Wal-Mart stores, Sam’s Clubs will offer only Blu-ray movies and hardware machines, as well as standard definition movies and DVD players, and up converts,” the chain said in a statement.

The announcement is the third major blow to HD DVD in a week, coming on the heels of similar announcements from retailers Netflix and Best Buy.

Even if Toshiba were to figure out some way to carry on as an upconverter, the two remaining HD DVD studios, Universal and Paramount, have no choice now but to start publishing in Blu-ray. This is still a retail business, where facings and planograms rule and are fought over fiercely. No studio can simply give up shelf space in Wal-Mart and Best Buy--the two largest DVD retailers in the U.S.--and hope to be competitive. Universal and Paramount simply have to hold onto their real estate in those chains and that means Blu-ray. They might continue also to publish in HD DVD for awhile, for sale online somewhere, but their embrace of Blu-ray is now just a matter of time.

I've always believed the format war would be settled at retail. And now it has.

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