October 19, 2005
the battle over high-def DVD: the real losers...
so we discussed this issue at stanford this summer, and it really just bugs the crap out of me. DVDs are moving to the next generation - high definition - but the industry cannot agree on a common technology, and therefore the VHS vs. Betamax battle from the 1980's is going to repeat itself. the winners? too soon to tell. the losers? consumers.
So the deal here is that two different companies have separately developed their own high definition DVD technology. On one hand there is Blu-Ray developed by an association that includes among others Sony and Phillips, on the other is HD DVD which is being backed by companies like Toshiba and Sanyo. I'm not going to get into the details of the technology. The main point is that to enjoy either of these technologies you need to buy brand new equipment (estimated at $1000) and the two technologies are incompatible. This means that movies will be issued on either Blu-Ray discs or HD DVD discs (depending on which studio is behind the movie - studios and software companies are taking sides in this battle...) and that you will only be able to watch Blu-Ray discs on your Blu-Ray equipment.
What does this mean for consumers? Well, in all likelihood, there will not be room for both of these technologies in the long-term market, so one of them will eventually be forced out of business by market forces. However, any consumers who have invested in what will end up being the losing technology will be left with some expensive equipment and discs, that will no longer be compatible with the high definition DVD market items. basically, they lose.
So, the bottom line here is that the competition between companies to develop this technology independently has led to the emergence of two incompatible technolgies. Motion picture studios, software companies, and consumers will be forced to choose sides, and ultimately, one camp will lose out. Big Time.
Who's it gonna be?
Posted by lara at October 19, 2005 09:54 AM
Comments
hey love,
Three things:
1. the betamax link is pointing to this article, prolly wikipedia huh? :P
2. several companies have already promised, and some have started to produce Blu-ray/HD-DVD compatible players. That being said, consumers may not necessarily have to make a choice, though I do agree that one format will eventually triumph in time.
Here is the article I am talking about:
http://www.xbitlabs.com/news/storage/display/20050907052521.html
apparently I don't know how to create a hyperlink in MT anymore. Ah well. you get the point.
3. It's a very good post, you're right, it does contain thought, several in fact. :P Oh, and you're beautiful.
Posted by: xxdesmus at October 24, 2005 12:46 PM
