The Clear Winner is Blu-Ray, not HD-DVD. The Industry has spoken.

For sometime now, there have been two competing High Definition DVD formats:

1. HD-DVD (backed by companies such as Toshiba and Microsoft (MSFT))
   
2. Blu-Ray (backed by companies such as Sony (SNE))
   

Studios, electronic manufacturers and other companies put their weight behind each format. Consumers were slow to adopt either format because of the format wars.

However, right now, we are starting to see a clear winner.

1. Best Buy is backing Blu-Ray as the High Definition DVD format
   
2. Blockbuster (BBI) has chosen Blu-Ray.
   
3. Netflix (NFLX) will stop supporting HD-DVD in favor of Blu-Ray.
   

Here's part of an email Netflix sent me:

You're receiving this email because you have asked to receive high-definition movies in the HD DVD format. As you may have heard, most of the major movie studios have recently decided to release their high-definition movies exclusively in the Blu-ray format. In order to provide the best selection of high-definition titles for our members, we have decided to go exclusively with Blu-ray as well.

While we will continue to make our current selection of HD DVD titles available to you for the next several months, we will not be adding additional HD DVD titles or reordering replacements.

Toward the end of February, HD DVDs in your Saved Queue will automatically be changed to standard definition DVDs. Then toward the end of this year, all HD DVDs in your Queue will be changed to standard definition DVDs. Don't worry, we will contact you before this happens.

...

We're sorry for any inconvenience. If you have any questions or need further assistance, please call us at 1 (888) 638-3549.

-The Netflix Team

With the winner of the High Definition DVD wars all but chosen, now consumers can move forward and adopt Blu-Ray DVD as the standard. Those consumers who have bought High Definition Televisions can now purchase Blu-Ray DVD players (and Sony's Playstation 3). Consumers who have held back purchasing camcorders waiting for the next generation of High Definition DVDs can now start purchasing Blu-Ray based Camcorders. Consumers can start purchasing Blu-Ray DVDs in larger numbers.

Congratulations to Sony (SNE) who has finally won a major format war, many decades after losing out on the Sony Betamax vs. VHS format war.

The New Four Horsemen of Tech

In CNBC's Mad Money show on June 6, 2007, Jim Cramer chooses the Four NEW Horsemen of Tech:
1. Google (GOOG)
2. Amazon (AMZN)
3. Apple (AAPL)
4. Research in Motion (RIMM)

Google and Apple are two obvious choices. At the minimum, those two selections will definitely lead the Tech Market over the next decade or so.

Very interesting discussion on Stockpickr.com : Tech Corner

I like the Idea of AmazonBay, the merger of Amazon (AMZN) and Ebay (EBAY). Ebay has a monopoly on the internet used product and collectible market. Amazon has a monopoly on the new and commodized internet retailing market such as books and DVDs. Together, they would create a monster of an internet retailing dominating almost all segments of internet retailing. Amazon can get rid of their Used Amazon Marketplace in place of Ebay. Amazon can also get rid of their customer rating system in favor of Ebay's. Ebay even comes with Paypal. AmazonBay would be a very exciting company to own stock in.

Video on Demand Trade; Death of DVD

Video on Demand Plays

CNBC's show Fast Money on June 5, 2007, featured a segment on playing the Video-on-Demand trend in the Digital Living Room. They started the segment saying that when DVDs come out, movie studios will send the movies direct to Video-On-Demand Systems as well.

1. Jeff Macke one of the traders suggests:
Releasing DVD and VOD (Video on Demand at the same time) helps the studios capture more of the margin. The rental business isn't that great for the studios. So the trade becomes: Long Disney (DIS) or any movie studio. Also, good plays are Comcast (CMCSA) because VOD is good for them. Companies like Blockbluster (BBI) and Netflix (NFLX) will get killed by this.

2. Eric Bolling:
Short BBI. Winner is Comcast (CMCSA) and other Content Distributors.

3. Guy Adami:
Long Lions Gate (LGF)


Joost Plays

Joost and internet video on Fast Money: There is a trend towards peer-to-peer model vs. a central server model (like YouTube). With the peer-to-peer model (from big players), downloads can be faster and legal. Get content direct from a CBS (CBS), Time Warner (TWX), or Viacom (VIA) or some other big player. There is also an advertising aspect, as Joost might be able to use this information to do targeted (more effective) ads.

Associated with this company are two publicly traded companies, CBS, and Viacom (VIA). One of the reporters speculates that it might be a good takeover target for one of the media players.

1. Eric Bolling:
Doesn't like it because it is not user generated. There are too many ways to get non user generated videos.