Despite Blockbuster's decision to snub HD-DVD, major US retailers are continuing to stock both formats until consumers tell them otherwise. In the US, stores like Amazon, Trans World and Virgin Megastores are not willing to miss out on a market of early adopters.
“Our feeling is that we should continue to supply both until the customers tell us that we shouldn’t,” said Jim Litwak, president and chief operating officer at Trans World. “Blu-ray is outperforming HD DVD in stores, but the customer is still telling us they want HD DVD.”
With nearly 1,000 titles available on both formats, retailers are devoting more floor space and promotional marketing to high-definition disc formats. Previously all next generation software titles were marketed with hardware players but films have been advertised separately.
“For the first five months [of the year], all software advertising was done in association with hardware,” said Steve Nickerson, senior VP of marketing management at Warner Home Video. “But since that time, there has been a little more software-only advertising. Best Buy, Circuit City, Target and Fry’s—it's becoming a big enough install base for hardware for them to come out with each week’s new HD software releases. Retailers can start advertising software separately.”
Although Blu-ray is still outselling HD-DVD, retailers are aware that excluding one format risks 'infuriating customers'.
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