Can either side win the Blu-ray, HD-DVD, format war?


January 14, 2008

In an ongoing battle, reminiscent of the vhs, Vs betamax, confrontation, in the seventies. In an all out war, for control of the DVD format, Blu-ray seems, for the moment at least, to be pulling ahead of rival, HD-DVD.

In a recent announcement, Warner Brothers stated, that as from May, its movie releases would be, only on in the Blu-ray format, in addition to regular DVD format.

Last year, Paramount Pictures announced that it would be releasing its product, on the rival, HD-DVD format, so far, sales do not seem to be living up to expectations for Paramount.
There are two problems for the movie companies, not only do they need to make a decision, on which new format they should use to distribute their films, but perhaps more importantly, do customers even want a new format?

In the seventies video in the home was new, it was just a matter of which type of machine the customer wanted to purchase. DVD is not new, and customers have no particular need to choose between HD- DVD or Blu-ray.

At the moment, consumers seem to be very reluctant to commit to either standard, the fact that there is now a high level of HD TV ownership, in homes up, and down, the country, does not seem to be fuelling the fire to purchase either system.

On top of this, the movie companies have a basic, nagging doubt that customers are already ahead of them, and are looking to the next generation of movie storage and delivery, the internet.

The companies already foresee, a larger drop in DVD sales, and rentals, as more and more people become accustomed to downloading movies and TV shows, illegal or not, this seems to be the way the market is moving.

It certainly is not helping matters, that two rival systems are competing for superiority, thus eroding consumer confidence, that they will buy the system that turns out to be the winner in this war.

In the end, there may be no winner, only two loosing sides.






 

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