"Good evening, Mr. and Mrs. North and South America, and all the ships at sea … let’s go to press!"

The legendary Walter Winchell spoke those words at the start of each of his radio broadcasts, adding in the sound of a Morse code key pounding out an urgent message in the background. The effect added the necessary gravitas to the day’s breaking news.

Winchell passed away almost 40 years ago. But if he was still around, he’d have a field day with the never-ending breaking news stories pertaining to online video distribution, i.e. video streaming and digital downloads, and their never-ending battle with packaged media rentals and sales.

With nearly two-thirds of American homes now equipped with at least one HDTV (according to Opinion Research Corporation’s recent study), the battle now shifts to getting content into those TVs, and it’s going to be a long, hard slog. While it’s still too early to predict the outcome, there’s no question that brick-and-mortar DVD stores are under a relentless, two-pronged attack from Internet delivery and cheap DVD rental kiosks.

Let’s go to the front page!

NEWS ITEM! Apple is wheeling and dealing!
They’re currently in talks with TV networks to lower the costs of shows downloaded from iTunes at the same time the new iPad goes on sale in late March. Apple currently charges $1.99 for standard-definition shows, and $2.99 for HD versions. A recent story in the Wall Street Journal says that Apple is trying to drop the prices for these shows to 99 cents as part of an effort to beef up video sales and drive demand for the iPad.

FLASH! Netflix has Blockbuster on the ropes in an epic bout for the ages!
CNET’s Greg Sandoval says that Blockbuster continues to close DVD rental and sales stores in favor of a combined kiosk/online streaming strategy to try and fend off Netflix and Redbox. Blockbuster’s stock, which traded in the $30/share range eight years ago, is now worth just 40 cents per share. And CEO James Keyes blames Netflix for "taking (DVD) demand out of the market," according to theStreet.com.

THIS JUST IN! Tired of seeing Redbox muscle in on their territory
Wal-Mart and Target popped the ‘one-buck-a-DVD’ kiosk vendor smack on the kisser, limiting individual sales of new DVD releases to five per customer, starting February 1. A Los Angeles Times story says Redbox and NCR are the fastest-growing distributors of movie rentals, and their sales are expected to grow 42% this year.

READ ALL ABOUT IT! ‘New kid on the block’ Roku holds its own against the big boys!
In late January, the company announced it had sold over 500,000 over-the-top Internet video set-top boxes and was considering an IPO. Roku boxes can access Netflix’ streaming service and dedicated Web video sites, and the company is looking to line up at least 100 content partners in 2010, according to Multichannel News.

HANG ONTO YOUR HATS! Mr. and Mrs. North America like to stream, and we don’t mean trout fishing!
Netflix reported that nearly 6 million of its 12.3 million subscribers streamed TV shows and videos from the company’s ‘Watch Instantly’ service in Q4′09. That’s almost double the number from Q4′08! It’s all part of the company strategy to move viewers away from physical discs and reduce nearly $150M per quarter in shipping costs, according to VideoTrak.

IT’S OUTTA THIS WORLD! Movies delivered to your home from outer space!
XDStreamHD is ready to start delivering HD video with 1920×1080p resolution and Dolby 7.1 lossless audio through satellite connections to the XstreamHD Media Server. You heard me - that’s Blu-ray quality, but without the disc! And you can tie the server into your home media network. Early signups get five HD movies for free. Hard to beat that deal!

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HPA 2010: I’ll be attending and presenting at the 2010 Hollywood Post Alliance Technology Retreat this week in Rancho Mirage, CA. The Retreat, which started almost a decade ago, has turned into one of the premiere gatherings of technology movers and shakers in the TV and movie industry. On tap this year are presentations on high dynamic range imaging, the future of packaged media (how fitting!), loudness issues with digital TV, and a half-day session on 3D from camera to the home. Look for coverage in an upcoming issue of Display Daily, as well as Large Display Report.