I just saw a comparison between Netflix HD and Bluray on N4g (http://www.n4g.com/News-249825.aspx) which I didnt like, so I just want to share my own opinions about it. Be aware that this is merely in terms of video, not as a physical format to topple DVDs.

Net Flix HD vs Bluray

- Bluray definitely has a better picture quality right now but the quality and the compression algorithms used will basically be constant while Netflix HD quality will grow over time as the internet speed increases and better algoritms (compression techniques) are introduced as it is independent of what technique used.

- Bluray needs a player, the prices of which will drop over time but will always be a hitch. For netflix, you dont need a player, and its practically independent of medium (playable from pc or xbox).

- Its cheaper and easier to watch netflix movies and this will always be the case as costs are much lower and people tend to watch movies online as it is much easier and more convenient.

- They are not perfect substitutes however. For people who want to archive the movies in high def format in a reliable physical disc withot need for internet connection, bluray is the way to go. Likewise Netflix HD is a good way to reach your favorite movies without need for a bluray player or disc.

- Bluray has the bonus and extra content, which might also be possible on Netflix HD, depending on the marketing strategies. For now, bluray seems more profitable so firms are encouraging bluray with extra/bonus stuff, but if the wind turns around, there is no reason why netflix wont have such features.

yea, that comparison is a joke. Blu-ray wins out on quality and quantity of new movies to choose from, Netflix wins out on convenience since you don't have to drive to a store or wait 1-2 days to watch a movie.

The guy is just lazy and doesn't care about watching The Dark Knight or other movies not on the netflix watch now program anytime in the near future.

I think that the biggest advantage Digital Downloads have is that they have the opportunity to change people's "relationship" to movies ...

actually its a lazy way to compare but I do agree with most points posted in this thread...

Yes I forgot to mention one point, which is...

- The libraries are not identical. Netflix probably doesnt have many of the newest movies which are available on bluray dvd. However, bluray also doesnt have many of the old movies which are available on netflix. I believe the libraries will converge, though this is more likely to go to Netflix's advantage as it is less likely for us to see old bluray movies compared to new movies on netflix. However, at least as long as bluray is more profitable than netflix, the newest will first come on dvd and bluray and always lag on netflix. What the industry doing now is "create a third market after movies and physical formats". First release on theatres, then on physical formats (dvd and bluray) and then digital. This is called Market Segmentation and/or Price discrimination in another sense (which are common practices in capitalist economies).

So can you stream the HD Netflix stream on the website or do you have to download it first?

You dont have to (and are not supposed to) download anything, everything happens online (of course it buffers to the hard drive all the time).

There are downsides to each...streaming usually means lower quality, downloading means that you have to take the time and download.

Not only that, but its too inconvenient to pirate HD movies since HDD's are still so small relatively speaking.

HD downloads, even on the illegal side, have a lot of things going against them. I won't even download illegal HD movies for the above reasons. Just too much of a pain in the ass.