I think the DVD format war between HD-DVD and Blu-Ray is not going to be a problem. The early adopters they're depending on to break the tie might not choose either format. They might choose downloads instead. Video downloads could be the third option that breaks the tie, kills the DVD off completely, and makes any format war obsolete before it's over.
Either way, Netflix won't be bothered. They can offer both formats for rent if they like. Early adopters could use Netflix to check out each format, with a rented DVD player, before deciding to commit to either one.
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