Netflix to Offer HD DVD and Blu-ray

Online movie rental service Netflix announced Tuesday it planned to support both new high-definition DVD formats upon their launch later this year, pledging to carry all initial HD DVD and Blu-ray movie titles and make them available for customers.

The company acknowledges that initial adoption of the formats will be slow, but it believes high-definition formats will eventually replace standard DVDs as prices fall. Toshiba expects to launch its first HD DVD player in March, and Blu-ray players will likely follow in May.

Warner Home Video, Universal Studios Home Entertainment, Paramount Pictures Home Entertainment and The Weinstein Company plan to have movies available for HD DVD. Sony Pictures Home Entertainment, 20th Century Fox Home Entertainment, Lionsgate and Paramount are planning to support Blu-ray at launch with a handful of titles.

"High-definition DVD is the next wave of excitement in home entertainment and we'll be there at its inception," said Netflix CEO Reed Hastings in a statement. "With far sharper images, better sound and more features, we expect high-def will greatly enhance DVD's consumer appeal and extend its popularity over the next decade or more."

But even with the backing of Netflix and other services, both formats have a long road ahead to broad adoption. With some studios backing one format exclusively, a clear upgrade path for consumers does not exist; some movies will require HD DVD while others only work on Blu-ray players.

Still, Netflix is hedging its bets by supporting both formats and catering to home theater enthusiasts that may be willing to spend $1,000 or more to improve their home video experience. The company did not say whether high-definition versions of movies will be available under the same pricing scheme as current DVDs.

"For those subscribers who have an immediate interest in renting movies in high-def, we're committed to making the full range of titles available at Netflix the moment they're introduced," said Hastings.