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HD-DVD's loss does not dictate Blu-ray's win

Posted on February 19, 2008 by Jeremy Toeman

As Toshiba officially declares defeat on the HD-DVD format (leaving some 1.3 million people in a lurch), I’m not convinced this spells victory for Blu-ray. Does a single format benefit the industry, consumers and producers alike? Sure. Does it mean consumers will flock to buy Blu-ray players and disks? I think that’s a little less clear at this time.

I’m looking at the state of the industry:

  1. We have a new format that is higher quality than the existing, dominant format, but is most imperceptible to typical consumers.
  2. The current format has been around for several years, has achieved utter dominance, and was a clear improvement on the previous format.
  3. A format war has occurred, leaving most consumers sitting on the sidelines for a long time, minds filling with doubt.
  4. At the same time as the new format is gaining some traction, alternate media consumption methods have emerged.
  5. The cost difference to adopt the new format is fairly foreboding.
  6. There is a lack of content available in the new format.
  7. Specialized hardware is needed for the new format, and it’s not inexpensive.
  8. There is a lot of jargon and confusing terminology associated with the format.

Here’s what’s interesting (to me, at least) is the description I have above is applicable to not only Blu-ray, but also DVD-Audio. SACD. Laserdisc. Minidisc. HD Radio. I’m sure there are more if I dig deeper. Fundamentally, I believe the timing is simply not right for Blu-ray to win independent of other activities. Here are some specific concerns I have:

  • Consumers, for the most part, can barely tell the difference between an upscaled DVD image and a Blu-ray picture (especially not for $300).
  • They probably don’t have the confidence (yet) that the format is here to stay.
  • The content library is weak (it may be growing, but it’s presently weak – Amazon has 176 titles in the Action/Adventure category at the time of writing).
  • The 720p vs 1080i vs 1080p debate is full of inconsistencies and confusion as to true benefits to the consumer (made worse by companies using marketing terms like TrueHD and Full-HD).
  • Products like the iPod, Slingbox, and AppleTV and services like Hulu and even YouTube are giving consumers more options in how they choose to watch and consume content.
  • Also, the above technologies are all presenting wider content options in lower quality, thereby not reinforcing the need for a “better” HD format (just as the iPod/MP3 decimated the opportunity for DVD-Audio/SACD).

If some/many/all of these issues change rapidly, we might see Blu-ray emerge victorious. What could take it’s place? I don’t know, the question might go unanswered for quite some time.

The war may be lost for HD-DVD, but it is far from over for Blu-ray.

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8 thoughts on “HD-DVD's loss does not dictate Blu-ray's win”

  1. Ben Drawbaugh says:
    February 19, 2008 at 11:38 am

    I agree with just about everything you say, except I say that Laserdisc was a successful format. It was available for over 20 years and every major studio released titles on it and most major CE manufactures made players.

    If that isn’t an example of a successful format, I don’t know what is.

    That being said, between all the other options out there, I wouldn’t be one bit surprised if Blu-ray ends up being another LD and honestly I’d consider it a success if it did.

    Reply
  2. Jeremy Toeman says:
    February 19, 2008 at 11:42 am

    Laserdisc? Really? http://en.wikipedia.org/wiki/Laserdisc#Success_of_the_format

    Reply
  3. tivoboy says:
    February 19, 2008 at 11:43 am

    I’ll go out on a limb here and bet my lucky $1, (plus the 100$ I should have coming sometime soon!) that the blu-ray format is going to grow quite quickly, and both studios and hw vendors are going to get behind it and be done.

    there will be several sub 200$ blu-ray players with great upscaling ability in the next 3-6 months and that will throw the consumer into the fray. Apple and other vendors will start putting MORE players in desktops and laptops even (there are already a few) and the format will take hold.

    People talk about just waiting it out till digital downloads take hold and that will kill any physical media. I agree, that is the future possibly, but that is a future 3-5 years out at LEAST for real consumer penetration.

    Reply
  4. tivoboy says:
    February 19, 2008 at 2:44 pm

    Wow, universal now producing in blu-ray today and toshiba HDDVD players Plus five free movies for 85$ dollars. What is the word for FIRE SALE in Japanese.

    Reply
  5. Ben Drawbaugh says:
    February 20, 2008 at 6:12 am

    The other reason why Blu-ray isn’t LD is because a Blu-ray player will play DVDs and within a few years, the players will be the same price as DVD players.

    Reply
  6. tivoboy says:
    February 20, 2008 at 2:19 pm

    BLOWOUT, they should call this THROW OUT!

    Toshiba HD-A3 HD-DVD Player (Plays High-Def HD-DVDs & DVDs) w/ 7 FREE Movies $99.99 Free Shipping, Feb. 20 1 PM

    BLOWOUT. Circuit City has the Toshiba HD-A3 HD DVD High-Definition DVD Player, which can play both HD DVDs (up to 720p/1080i) and standard DVDs (up to 720p/1080i upscaling), for a low $99.99. Free Shipping or Free in-store pickup. Tax in most states.

    Reply
  7. Pingback: Toshiba continues as Blu-ray spoiler | Out of the Box

  8. Pingback: LIVEdigitally » Blog Archive » Samsung Adds Final Nail to Blu-ray’s Coffin

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Jeremy Toeman is a seasoned Product leader with over 20 years experience in the convergence of digital media, mobile entertainment, social entertainment, smart TV and consumer technology. Prior ventures and projects include CNET, Viggle/Dijit/Nextguide, Sling Media, VUDU, Clicker, DivX, Rovi, Mediabolic, Boxee, and many other consumer technology companies. This blog represents his personal opinion and outlook on things.

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