Monday, January 14, 2008

More HD Disc News - Watching the War

The one thing that is needed in the HD Disc Wars is for the remaining film studios supporting HD-DVD to switch sides to Blu-ray. And that may have just happened.

Universal Studios, staunch supporters of HD-DVD exclusively, just announced they plan to continue to support HD-DVD for now, but no longer exclusively. And Paramount is no longer locked to HD-DVD either. While not the definitive final blow, this is significant news. It means both studios have recognized they are in the minority, and since studios are all about making money, they have realized their profits lie on the BD side, more so than HD-DVD.

What really swayed the war? We think the Blockbuster announcement of last spring may of done it. While you might still find a few HD-DVDs in a hand full of Blockbuster stores, they aren't a growing number (probably shrinking, due to Blockbuster's 'you don't have to return it' policy). If you want to rent an HD Disc, you have to have a Blu-ray player. And if you buy a Blu-ray player, you'll only buy BD discs. So the chicken/egg problem is solved.

What's interesting is, contrary to what Universal Studios has been saying, the consumer's choice of low-cost hardware didn't drive the war. HD-DVD players are still a couple of hundred less than BD players, but what good is that if you can't get the movie you want? In fact, it seems this was not a decision driven by the market, as much as by the studios. As consumers, if we had two equal quality choices, we'd always pick the cheaper. But we didn't have tha choice. It was made for us by the studios, and it wasn't the less expensive option.

We still advise our clients to wait just a bit longer to buy their Blu-ray player, though. Players we've tested all make wonderful pictures and sound, but operationally are disasters. Not just flakey, true disasters. It's a firmware/software issue we know will be fixed. But if you want to avoid frustration, and wait for the war to end, get one of the Oppo up-converting DVD players, see your current DVDs in near-high def, and wait for manufacturers to polish up their BD players. You'll soon buy one for $200 that will be great.

5 comments:

Anonymous said...

I would like ot add that even though the format 'war" is over, the real issue is if the consumer will even want this format.

The bad quailty of players makes me think that this might just go the way of laser disk.

Platinum Home Theaters said...

Agreed, and perhaps it should go the way of the Laser Disc. However, HD Discs already has more interest than LD had at start up. To counter that, LD never had to compete with the potential of on-line HD services. We will shortly be able to rent a form of HD from iTunes, which beats any video store in convenience and availability, and pleasantness of the experience (I have problems dealing with the video store kids with piercings every which way...sorry, it's just me). If on-line rental/purchase really works out, and there are some issues to solve, disk-based software may just go away completely.

Thanks for your comments!

Anonymous said...

Given that most consumers still think a upconverting DVD player is HD, the gmae is far from over. I also think that Sony may have bet the farm on something that is not going to pay off for the investment.

Anonymous said...

Given that most consumers still think a upconverting DVD player is HD, the gmae is far from over. I also think that Sony may have bet the farm on something that is not going to pay off for the investment.

Platinum Home Theaters said...

It would be interesting to know what both Sony and Toshiba invested in their systems, but as HD-DVD fades into the background, and Blu-ray becomes more commonplace (our Blockbuster has a growing display) consumer awareness will elevate. The real competition may be from upconverting DVD players, but the long term competition will be from on-line or download based system. Until the more consumers have really fast Internet connections (it's going to take fiber, no question) on-line delivery systems may be hobbled by the speed/quality trade off.

But you point is well taken. It would be interesting to know.