End of the format war

End of the format war

In January 2008, a day before CES 2008, Warner Brothers, the only major studio still releasing movies in both HD DVD and Blu-ray Disc format, announced it would release only in Blu-ray Disc after May 2008. This effectively included other studios which came under the Warner umbrella, such as New Line Cinema and HBO, though in Europe HBO distribution partner the BBC announced it would, while keeping an eye on market forces, continue to release product on both formats. This led to a chain reaction in the industry, including major U.S. retailers such as Wal-Mart dropping HD DVD in their stores. A major European retailer, Woolworths, dropped HD DVD from its inventory. Netflix, the major online DVD rental site, said it would no longer stock new HD DVDs. Following these new developments, on 19 February 2008, Toshiba announced it would be ending production of HD DVD devices,[34] allowing Blu-ray Disc to become the industry standard for high-density optical disks. Universal Studios, the sole major movie studio to back HD DVD since inception, shortly after Toshiba's announcement, said "while Universal values the close partnership we have shared with Toshiba, it is time to turn our focus to releasing new and catalog titles on Blu-ray Disc."[35] Paramount Studios, which started releasing movies only in HD DVD format during late 2007, also said it would start releasing in Blu-ray Disc. Both studios announced initial Blu-ray lineups in May 2008. With this, all major Hollywood studios now support Blu-ray.[36]

Former HD DVD supporter Microsoft has stated that they are not currently pursuing a Blu-ray Disc drive for the Xbox 360, and will instead focus on their digital downloads from the Xbox Live Marketplace.[37]

Blu-ray Disc began making serious strides as soon as the format war ended. Nielsen VideoScan sales numbers showed that with some titles, such as 20th Century Fox's "Hitman," up to 14% of total disc sales were from Blu-ray, although the average for the first half of the year was around 5%. Shortly after the format war ended, a study by The NPD Group found that awareness of Blu-ray Disc had reached 60% of U.S. households, with most experts predicting the business will take off in a significant fashion in the fourth quarter of 2008, when BD Live software and players--which offer a variety of Web-enabled features, from downloadable trailers to chat and instant-messaging functions--start hitting the market.