1. BLockbuster sucks. In the last 3 years they have lost 1.8bn in net income. Their profit margin last year was 2.5% with 10% less revenue (falls about 10% every year). Their stock price ($4.50 or so) is 1/5th that of Netflix (25 or so) and their market capitalization (850m or so) is 500m less than netflix.
2. Of their 5,500 locations only 1250-1700 will stock BR. Of those 250 will also stock HD-DVD. Both formats will be availible online. The number of stores they have has been consistantly declining, the brick and mortar store is dying. In NYC there are 5 stores total, the closest is a mile from me.
3. Netflix still carries both as does BBL online. This means that BBL has acknowledged that the rental store paradigm is dying.
4. The people who are adopting these formats are not renters. They are early adopting technophiles who have money and buy stuff. If they rent they are savvy enough to know they could pay a small monthly fee and have unlimited rentals with no return or late-fee hassle through either BBL online or Netflix.
This is nothing but a marketing gimmick from Sony, who is a close buddy of BBL. If anything it only validates that B&M stores are being marginalized and the next-gen battle is online, which BBL is losing already.
You want to know how much of a non-event this is? I live in Manhattan with about 1.6m other people. There are 5 blockbusters on the island. That means that 1.25 blockbusters will carry BR and/or HD-DVD discs. That means that I have to haul my ass to the nearest subway station, take it to X number of stops, perhaps switch trains, get there and come back. For somebody without a work-reimbursed ticket, or an unlimited monthly fair, that's $4 more. The whole trip will probably take me an hour. Yeah, that's gonna happen.
I have yet to see any significant evidence that BR is a "superior technology". People tout larger discs, but I find that argument irrelevent. Sure, 50GB discs might be nice, but they aren't practical for most people. Keep in mind that J6P doesn't have gigs and gigs of mp3s or movies (or pr0n). The higher bitrate touted is probably not even measurable and it's something used as a marketing gimmick, akin to 1080p for most cases. Comparing movies from the two formats yields the same pictures.
Sure, one could argue for 1440p, which would require more bandwidth, but for what? When will 1440p sets come out? When will source material be availible? When will actual pick-ups able to access it be around? Without answering that then all of the space that BR has won't be used, since AFAIK 1080p with current less lossy compression doesn't need 50GB. Even if it did HD-DVD could always chuck extras on the 2nd disc as has been done with DVD since the day it was introduced.