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Game Over in Blu-Ray HD contest?

Posted By Barry Ritholtz On January 8, 2008 @ 5:45 pm In Digital Media,Film,Technology,Video | Comments Disabled

I’ve mentioned the Blu Ray/HD quandry in the past, but it seems the fight is drawing to its conclusion. In both the US and Europe, Blu-ray discs are significantly outselling HD DVDs [1].

But its this MacRumors [2] chart (below) that pretty much sums up the battle:

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Warner_300 [3]

Its hard to see how HD has a shot.

Now the question becomes how fast the prices drop on both the Blu Ray players and movies, but for now, I am sticking with an upconvert Sony [4] for the big TV.


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UPDATE: January 8, 2008 8:21pm

Why would prices go down?

As we previously discussed, I suspect many consumers have been on the sidelines awaiting the winner of the format war between Blu-Ray and HD.

As that fades away, the total number of purchases of the winner — Blu Ray — will go up significantly.

Thus, economies of scale, mass adaptation, and desires for deep market penetration will drive prices lower.

As to the monopoly issue — I doubt its an issue. 1) These are video playback toys, not an essential product or service; and B)  There is still legit competition from ordinary DVD players (fer cryin out loud, you can still buy VCRs for $29).   

My apologies for failing to explain the intermediate steps in my thinking  . . .


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2008/01/game-over-in-blu-ray-hd-contest/

URLs in this post:

[1] Blu-ray discs are significantly outselling HD DVDs: http://www.theinquirer.net/gb/inquirer/news/2007/11/27/blu-ray-outsells-hd-dvd

[2] MacRumors: http://www.macrumors.com/2008/01/04/hd-dvd-vs-blu-ray-battle-over-warner-switches-to-blu-ray/

[3] Image: http://bigpicture.typepad.com/photos/uncategorized/2008/01/06/warner_300.png

[4] upconvert Sony: http://www.amazon.com/exec/obidos/ASIN/B000SDNMHW/thebigpictu09-20

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