Wal-Mart goes Blu, wallops HD DVD

No. 1 retailer will stock Blu-ray only by June

By Susanne Ault and Danny King -- Video Business, 2/15/2008

FEB. 15 | Wal-Mart Stores dealt what may well prove to be the fatal blow to HD DVD, saying its 4,000 Wal-Mart and Sam’s Club stores by June will merchandise Blu-ray Disc as their only high-def format.

The decision, made public in a statement on the merchant’s corporate Web site on Feb. 15, capped a week in which both Netflix and Best Buy also threw their support behind Blu-ray.

Netflix, like Wal-Mart, said it will phase out HD DVD titles completely this year. Best Buy stopped short of dropping HD DVD, but beginning in March will merchandise and market Blu-ray as the preferred format.

“We’ve listened to our customers, who are showing a clear preference toward Blu-ray products and movies with their purchases,” said Gary Severson, Wal-Mart’s senior VP of home entertainment, in the statement. “With the customers best interest in all we do, we wanted to share our decision and timeline with them as soon as possible, knowing it will help simplify their purchase decision, increase selection and increase adoption long term.”

Wal-Mart said it will “continue to sell through remaining HD DVD product, but in less than 30 days, customers will see a more predominant move toward Blu-ray in stores, clubs and online.”

After Warner Bros. stops HD DVD production in May, Universal and Paramount will be the only studios publishing titles in HD DVD.

The HD DVD camp had no response to Wal-Mart’s decision at press time.

“Retailers have a tremendous impact on consumer preferences, and as the world’s largest retailer, Wal-Mart’s reach and leadership are unparalleled. Their decision to support only Blu-ray, particularly in light of the string of similar announcements from the content and retail communities over the last six weeks, seems to us to be a very clear statement that Blu-ray Disc has emerged as the format of choice for high-definition home entertainment,” said Andy Parsons, chairman of the Blu-ray Disc Assn. U.S. Promotions Committee.

Marcy Magiera contributed to this report