Netflix informed customers that it will no longer be adding HD DVD's to it's inventory. Towards the end of February 08 (this month) any 'saved' DVD's in the customer's queue will be changed to standard DVD' s after that.
Existing HD DVD's will apparently be available 'for the next several months'.
This seems odd since I can't imagine the HD DVD's aren't still generating profit in a national rental environment and would for quite some time considering the amount of hardware in the marketplace. I just saw stats showing that HD DVD 'preferred' accounts with Netflix GREATLY outdistance the Blu Ray preferred accounts.
But, regardless of their motives, and regardless if Sony might've sent some cash their way, I'd say there is no recovery from this. As bleak as it looked already... this just took a .45 and put it to the head of the bleeding, battered, and barely breathing body of the HD DVD format.