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HD DVD Could Be Dead Sooner Than You Think

Written by Aseem Kishore / February 15, 2008 11:30 PM / 8 Comments

The high definition DVD format war has been raging for quite some time now, but it looks as though there may finally be a victor. The HD DVD camp, started by Toshiba and including heavyweight backing from Microsoft, has been gradually losing ground over the last year. Recent events, which we discuss below, make it almost certain that the HD DVD format will be joining Betamax in format heaven soon.

Even though Toshiba was able to keep the prices on their devices far lower than comparable Sony Blu-ray players, the lack of big studio backers - and hence a relatively small collection of titles - meant lower sales for its HD DVD players.

The first major blow to the HD DVD format was when Warner Bros decided to release all of its high definition titles exclusively in the Blu-ray format. According to Barry Meyer, the Chairman & CEO, the move was a "strategic decision focused on the long term and the most direct way to give consumers what they want." They will continue to release HD DVD titles only until May 2008.

The second major blow to Toshiba and the HD DVD camp was when we heard the news that first Blockbuster, and then a few days later Netflix, jumped ship and went exclusively Blu-ray for all of their hi definition content. Considering that Blockbuster and Netflix are the two largest DVD rental businesses in the US, it's easy to see that this will result in a major market share reduction for HD DVD.

Recently two more blows for HD DVD came. Firstly, Wal-Mart - the largest retailer in the entire world with massive reach - picked Blu-ray. By June of this year, you will see Blu-ray players, Blu-ray movies, Blu-ray converts, and lots more at your local Wal-Mart.

Secondly, news has come out that Toshiba itself has realized that Blu-ray is going to be the gold standard for high definition DVDs; and is planning to slowly kill off the HD DVD format in the months ahead. The Blue-ray onslaught was simply too much for Toshiba and its major supporter, Microsoft, to handle.

Even with huge price slashes recently - HD DVD players as low as $119 - Blu-ray has been unstoppable with an almost 70% share of all HD movies sales. Of course, it doesn't help HD DVD that the Sony PS3, which is also selling well, is a Blu-ray only disc player.

As we see it, the battle was fought well by both sides - but it's now time for the HD DVD camp to admit that it has lost. Let consumers enjoy one HD technology without any confusion.

What are your thoughts on the high definition format battle?

Written by Aseem Kishore, a technology enthusiast and lead blogger for Online-Tech-Tips.


Comments

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  1. Yes, but in terms of cost, functionality, DRM, etc., is this outcome good for consumers or not?

    Posted by: Rodney | February 16, 2008 12:54 AM



  2. Rodney, unfortunately that is going to be a moot question... the fact is Blu-Ray has won.

     Posted by: Richard MacManus Author Profile Page | February 16, 2008 3:37 AM



  3. In the short run, the end to the "format war" is a good thing (except for Toshiba and others who invested in the HD-DVD format). For consumers, we can feel more confident that we won't be stuck with a player that has no content. For content providers, there is now a clear standard to use. For vendors, there is certainty that the Blu-Ray format is the "right" format.

    But, considering all of the changes, I wonder if a protracted format war wouldn't be better for consumers in the long-run? Sure, the uncertainty over which format to choose is a bit unnerving, but there was a healthy level of competition to attract sales from both sides of the camp - economies of scale should take care of the price issue now. However, a protracted format war may have been the catalyst to bypass physical media and move to a digital distribution model more quickly.

    The debate may be moot as digital distribution is likely the future. It just would have been nice to see the other ancillary benefits of jumping into digital distribution: wireless and broadband companies would have greater incentive to roll out more services and coverage to meet consumer demand. This in turn would begin to draw more content and content providers to use the Internet to share and distribute their work. As more content goes to the Internet, there would be likely be increasing pressure to, at the very least, examine the entire concept of DRM and possibly experiment with new licensing models (i.e., creative commons).

    In the end, the Blu-Ray "win" may be short lived.

    Posted by: Hans | February 16, 2008 6:18 AM



  4. I don't need Blu-Ray either. Give me a media center. Discs are sooooo 20th century.

    Posted by: dc crowley | February 16, 2008 7:51 AM



  5. I was an early believer in the HD-DVD format and it's a shame they are losing out. I am pretty saddened by this, I mean HD-DVD was going to be the people's hi definition DVD, the one that most people could afford.

    I think Blu-Ray is overrated, overpriced and just plain inferior, even though HD-DVD and Blu-Ray use the same laser to read data. The cost to manufacture Blu-Ray discs costs way more than it does to manufacture HD-DVD's, due to the Blu-Ray disc have a thinner surface layer, making the data closer to the laser.

    The only difference between the two formats is Blu-Ray discs are more expensive, but hold way more data and that's really all.

    - Dwayne Charrington.
    http://www.dwaynecharrington.com

    Posted by: Dwayne Charrington | February 17, 2008 5:07 AM



  6. You wouldn't expect an 50 GB SD card (making up numbers here) to be as cheap as one with only One GB
    of course more space = more price
    And Price always drops as stuff gets older
    compare DVD's from when they were pioneering and then now.

    Posted by: atomic1fire Author Profile Page | February 17, 2008 7:18 PM



  7. I think everyone will be relieved that there is now one format. Personally I am pleased it was Blu-Ray that won.

    Posted by: Michael McGimpsey | February 17, 2008 11:30 PM



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