Blu-ray Player Makers look to tap online Movie

With U.S. DVD purchases continuing to fall off the cliff--movie disc buys were off 13.8 percent in 3Q2009--an increasing number of Blu-ray backers are looking at online video delivery as a needed shot in the arm for their business.

Some of the biggest companies backing the Blu-ray format for high-definition movies are hedging their bets by introducing players that can also show Internet video, which is making surprising inroads in the home-entertainment market.

Electronics retailers and manufacturers including Best Buy Co. (BBY), Samsung Electronics America Inc. and LG Electronics USA Inc. are selling Blu-ray disc players that tap into movies from online rental companies. The devices provide an alternative to pay-per-view cable services.

The hybrid movie players tap a growing library of online movies and television shows from Amazon.com Inc. (AMZN), which screens movies for as little as 99 cents, and from Netflix Inc.