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Until now, online movie rental company Netflix provided both HD DVD and Blu-Ray high-definition discs since both formats came to market in early 2006.

But today, Netflix says it will only stock the Blu-ray format because the industry has "picked a winner in the face-off between the two competing high- definition DVD formats."

"The prolonged period of competition between two formats has prevented clear communication to the consumer regarding the richness of the high-def experience versus standard definition," said Ted Sarandos, chief content officer for Netflix in a press release. "We're now at the point where the industry can pursue the migration to a single format, bring clarity to the consumer and accelerate the adoption of high-def. Going forward, we expect that all of the studios will publish in the Blu-ray format and that the price points of high-def DVD players will come down significantly. These factors could well lead to another decade of disc-based movie watching as the consumer's preferred means."

The Blu-ray and HD DVD format war has been ongoing for years now, as both formats want to be the next generation DVD. However, the scales were tipped in Blu-ray's favor when Warner Bros. announced it would go Blu-ray exclusive. Four of six major Hollywood studies said they will release their movies exclusively in the Blu-ray format, and others are expected to follow soon.

Netflix's decision to do the same will no doubt affect Toshiba’s HD DVD format and buyers significantly. Netflix said it will phase out stock of HD-DVD movies by end of the year.

After this move, Blockbuster will be the only remaining rental company that provides HD DVD movies. It's expected the company will follow the Blu-ray lead.