That's the idea behind a recent column on TheStreet.com, which cites consumers happiness with DVD and the oncoming march of downloads as reasons that "Blu-ray rips off consumers." Now to be fair, actually within the article are less hyperbolic statements like "Blu-ray hasn't failed" but even from here we can see several holes in the author's theory. To begin, he claims that downloadable and streaming high definition video is "360 lines away from providing the same clarity" demonstrating an unfortunate ignorance of 1080p downloads already available from Vudu and streaming from CBS.com. Unfortunately, as we all should be aware there's more to the movie experience than simply resolution, and even with more 1080p movies on the way from Xbox Live, it will be some time before a customer can get the same experience available on Blu-ray from any internet service. Another assumption? That Blu-ray "expects customers to ignore the rapidly advancing technology right on their doorstep." Tell that to companies like Samsung, LG and Panasonic, who already sell Blu-ray players that double as digital distribution set top boxes delivering HD movies from Netflix and Amazon. Check out all three pages of this guy's opinion yourself and let us know if we missed anything.

Apparently Blu-ray sales aren't increasing fast enough for everyone, in its ongoing plan to not pull a Circuit City, Best Buy is reportedly in talks with CinemaNow and other, unnamed, movie services about launching a digital delivery arm as early as this summer. CinemaNow is well prepared to set up online video stores for others, with Blockbuster (bad example) and Dell already on board. Variety suggests Best Buy could market and sell Internet-connected TVs and set-top boxes that include CinemaNow access, with a shared revenue stream between the two, but nothing is final. Netflix has a hit on its hands with Watch Instantly so think it over, would you give an Insignia Blu-ray player or HDTV a second look if it could download movies?

Whoa, vaquero -- calm your jets. This is just a projection, which may or may not prove to be indicative of reality. That said, there's still quite a lot here to discuss, particularly since we've been hearing so much hubbub over the supposed explosion of digital distribution. Media Control GfK International has forecast that sales of Blu-ray Discs will increase some 150 percent to $2.9 billion, up from $1.1 billion in 2008. For those keeping count, digital distribution only generated $1.5 billion last year, and that's including every penny made from VOD and broadband services. In-Stat analyst Michael Paxton was quoted as saying that the "bandwidth required to stream any type of HD video is way beyond what most households have," and he continued by noting that the "convenience factor is still not there for streaming media." You owe it to yourself to hit up the read link for the full report before blasting your opinion in comments below, but we suppose we can't stop you either way.

It's no secret that the movie lovers of the world are leaning more and more towards that instantly gratifying digital download option, and judging by Q4 numbers, we'd say Netflix has done a better job at exploiting that demand than rival Blockbuster. In a move we're honestly thrilled to see happen, the latter firm is apparently waking up and attempting to play catch-up. Here in the past week Blockbuster has hired on former Philips executive Kevin Lewis as Senior Vice President of Digital Entertainment, a spot that'll be responsible for "strengthening commitment to multi-channel entertainment delivery." Additionally, Robert Barr was selected as VP to Blockbuster.com, a move that signals the company's seriousness about getting its online division formidable. As easy as it is to kick the guy that's already down, no consumer in their right mind wants Netflix running this show solo -- there's a word for that type of situation, and it ain't good for your wallet.

[Image courtesy of Manda Mia]

Read - Kevin Lewis hire
Read - Robert Barr hire

Oh c'mon -- you had to know this was a possibility, right? As Netflix's Watch Instantly service becomes more viable and its library expands, more and more users are going to start tapping into those servers for instantaneous enjoyment. Eventually, suggests Cowen and Company analyst James Friedland, all that instant gratification could lead to more costs, and not surprisingly, it'll be the end-user paying up. As an increasing amount of subscribers use the online streaming feature, Netflix is asked to shell out more cash to studios for the content. Friedland predicts that "the company will charge an extra fee for the service [if it] starts to squeeze profit margins," just like it already did with Blu-ray Discs. We get the feeling most customers wouldn't balk at another $1 per month charge so long as the instant library started to include new releases, but if not, who knows what the backlash would be.

This is it, folks -- the shootout you've been waiting for. We've worked with our brethren over at Engadget Classic to assemble an end-all HD Netflix roundup, which pits the BD-P2500, BD300, TiVo HD, Xbox 360 and Roku Netflix Player against one another. We know you're salivating at the thought of it, so rather than just telling you who emerges victorious, we'll point you over and let you dig in yourself.

Oh, Blockbuster -- what will we ever do with you? After first launching that branded MediaPoint box that all of four people purchased, you're now waltzing into the digital distribution party a few months late. According to a somewhat ambiguous report issued this morning, the movie giant has teamed up with Sonic Solutions in order to "give consumers access to a vast library of premium digital entertainment across a wide assortment of home and mobile electronic devices." In other words, those kosher with downloading content via Sonic's existing CinemaNow products and the like can soon have Blockbuster material on their handhelds, laptops and LCD-equipped threads. At least initially, BB will still be selling this material on a pay-per-view type system, though a subscription model could be implemented (read: should be implemented) shortly.

[Via CNET]

Connected TVs are being blasted out hot and heavy here at CES, so it's a good thing that early studies are showing quite a bit of consumer interest. New research carried out by Oregon Networks has discovered that 71% of respondents would prefer a media browser to be installed within their next HDTV, and if for some reason it didn't, 45% said they'd be inclined to download one while 29% "definitely would" download one. Researchers also found that online video portals such as YouTube and Hulu were seen as value-add inclusions, and having them baked into HDTVs would enable families to spend more time together enjoying the spoils of digital video. Moreover, those polled voiced their love for being able to access networked media around the home on their sets, which makes us wonder if either technophiles were intentionally asked or if the world really is swaying to appreciate media streaming.

SIM2 already linked up with Entertainment Experience back at CEDIA, and now the cute couple is hooking up once more in order to deliver a complete display + content solution. The aptly named Entertainment Experience System consists of the Grand Cinema C3X 1080 or HT5000E 3-chip DLP projector along with an Entertainment Experience Media Center that manages Blu-ray and DVD, PlayStation and Xbox Games, HDTV, HD video, PC and HDGiants digital movies. Finally, the bundle includes digital flicks from HDGiants, though it's unclear how many will be included and at what cost. Judging by how pricey the whole Niveus + HDGiants hookup was, though, we're thinking these won't come at a bargain.

Watch out, MP3 -- you've got a formidable opponent creeping up on you. All kidding aside (yes, we were kidding), Fraunhofer IIS is hoping that at least four people will turn from their MP3 / AAC addictions and embrace yet another one of its audio formats at CES, which is simply christened MPEG Surround. Harald Popp, head of the Multimedia Realtime Systems department at the company, has asserted that the firm believes that "MPEG Surround will become a major online distribution format when downloading music, movie and TV content," noting that it offers "the music industry a way to sell iPod-compatible surround content through the existing stereo download infrastructure." We suppose the multi-channel aspect is at least somewhat noteworthy, but we still see a hard road ahead for it to gain "global acceptance" in 2009.

In the next step for the download-to-own movement, Tsutaya TV offers Japanese viewers the opportunity to download high definition (1080i) videos from Paramount, Warner, NBC Universal or Disney and burn them to a Blu-ray disc to keep permanently. In a trial run, AV Watch downloaded a full length 8.8Gb movie (No Country for Old Men) in 28 minutes over a fiber connection, compared to 120 minutes via ADSL. The magic of Google Translate reveals video quality that was only slightly outpaced by Blu-ray standards, unfortunately accompanied by only a stereo audio soundtrack. The biggest handicap? Equipment incompatibilities, with a burned disc that wouldn't play in a PlayStation 3, we're not sure if the acTVila-based service is ready for prime time, but at the moment we're at loss for a better option that serves both our need for instant gratification and packrat mentality at the same time.

Get down with your bad self, Criterion. First you make the totally necessary leap to Blu-ray, and now you've opened your mind to digital distribution. The recently launched Online Cinematheque gives viewers the ability to catch short clips of select films online for free, and if they're really intrigued, they can cough up $5 to watch the whole thing. Afterwards, if they've discovered one of their new favorite films, Criterion will put the $5 rental fee towards the purchase of the title on DVD / BD. Sorry for just providing you with a portal to kill hours upon hours of free time.

[Via Slashfilm]

Remember when DivX was a format only understood by the hardcore BitTorrent users and P2P mavens who shared low-quality videos online? No more. DivX is stamping its name on all manners of devices these days, and now it's getting in with the always-guarded content providers. Today, DivX and Warner Bros. have announced that the studio's material will soon be available for distribution in the DivX format, meaning that any DivX Certified consumer electronics device could play it back. The pact is similar to the one signed with Sony Pictures Television and Sony Pictures Television International, though not everything is particularly peachy. Content will be available in SD DivX as of this month, but HD DivX won't be streaming until September of 2009. Ah well, at least we've a date to hold 'em to.

Now that the company formerly known as MusicGiants has branched into the movie business, both sides will now exist under one brand: HDGiants. To celebrate the company is launching a Windows Media Center app to deliver high quality music and movies over the internet. Not that we're knocking the old send-customers-a-hard-drive full of movies distribution model, especially since HDGiants actually has a major studio on board -- unlike some we could name -- but as a step forward from the exclusive domain of custom installed media centers, it's not a bad start.

Read - MusicGiants + VideoGiants = HD Giants
Read - HDGiants offers Media Center app

We hate to say we called it, but our complete in-the-dark guess of just under four C-notes was right on the money. LG has just announced that it's BD300 Network Blu-ray player (and Netflix streamer) will begin shipping to national retailers (Best Buy, Circuit City, Bass Pro Shops, etc.) next month (as in, a month later than initially anticipated) for $399.95. Not the cheapest BonusView-enabled deck in the mix, but given the Netflix functionality tossed in on the side, we can still see quite a few folks joining the BD camp with this one. Matter of fact, we'll just go ahead and ask -- is this your ticket into the Blu?