Tuesday, December 11, 2007

BusinessWeek And Diffusion Group Take Sides On HD Format War


Are you ready for some more HD format war speculation? BusinessWeek comes in with 3 indicators on why they think Blu-Ray will win the format war.

1. Blu-ray has sold more than twice as many discs as HD DVD this year.
2. While HD DVD has a larger number of dedicated players in the market, 2.3 million PS3s offer an overwhelming advantage.
3. Rumor suggests that Warner Bros. will go Blu-ray only, giving that side 70% of the home-video market.

What is funny is that Diffusion Group released a report on why they think HD DVD will win, stating that "43% prefer HD DVD, 27% prefer Blu-ray, and 30% are undecided." This is the best part:

"The most immediate wave, which is expected to be exhausted by early 2008, is comprised of the remaining early adopters who...show a preference for Blu-ray. The second (and more sizable) wave will consist of early mass-market consumers who, while less enthusiastic about technology per se and very price sensitive, are more likely to favor HD DVD."

This should be interesting, because if Warner Bros. goes exclusive to Blu-Ray, that format will hold 70% of the movie houses. While I think that most people would buy the cheaper HD format, it wouldn't make sense if all the movies turn out to be on Blu-Ray. That would spell doom for the HD DVD camp.

[BusinessWeek and Diffusion Group via Gizmodo]

2 comments:

Anonymous said...

Eh, I'm not buying unless I get a player that does both at a fair price; or I'm not buying until the war is all but decided.

That, I think is what the average American is thinking.

Timothy Pontious said...

"The second (and more sizable) wave will consist of early mass-market consumers ..."

Well, we all know that porn is why VHS won over Beta. So until I see which way the adult market jumps I don't think there is enough market data to sustain a guess.