Aron, a frequent contributor to this site, suggested that the new DVD format could be an opportunity for Netflix:
Might start actually seeing viewable movies by next christmas on players running 1000$/pop. This would be a lucrative niche to serve for Netflix, and in turn Netflix should accelerate adoption given the problematic economics that brick/mortar rentailers would have in supporting the format.
He's referring to the Video Store Magazine story about the new HD-DVD format. While it will require new players, the new format will enable increased resolution and audio, as well as room for additional interactive content.
“We have evaluated all the emerging home entertainment technologies and have selected the one which we feel is the most beneficial to our consumers,” said Craig Kornblau, president of USHE. Universal will begin issuing select titles in the HD-DVD format by next holiday season, 2005. “We are confident that HD-DVD’s advanced features will lead to a more robust consumer experience. For content providers such as Universal, the enhanced copy protection allows us to continue our fight against piracy and preserve the integrity of our properties.”