In
the News
November 24, 2006
“Do
Not Buy High Definition Player Today” –
Industry Expert.
Blu-Ray and HD DVD Confrontation Takes $300 Million
Toll
by Anton Shilov
The Consumer Electronics Association has slashed projections
for sales of next-generation DVD players for 2006, while
industry experts further advice consumers to wait with
the adoption of either Blu-ray or HD DVD. The war between
the two emerging standards has already caused consumer
electronics companies over $300 million in revenues.
Even though both next-generation high
definition digital video disc standards – Blu-ray
and HD DVD – have their own competitive advantages
and both offer increased image quality compared to the
contemporary standard definition DVD, industry experts
advise end-users not to bite on Black Friday’s
price slashes and acquire a new player, as eventually
only one standard survives and it is not obvious that
users will be correct in their assumptions now and may
eventually find themselves with a player without content.
“You don’t have to decide
yet. History has taught us that only one of these formats
is going to come out on top, and consumers who choose
the wrong product will lose money, time, and, of course,
quality home viewing entertainment. Wait to make this
significant purchase until after the holidays, and after
one of the two options appear to be leading the way
to the next level of home entertainment,” said
Dan Diotte, the founder of disc repair and maintenance
company VenMill Industries.
Back in January, the Consumer Electronics
Association predicted that more than 600 000 high definition
DVD players, worth $484 million, would be sold this
year. However, delays of shipments and manufacturing
issues have twice caused the organization to lower its
forecast, and it now expects U.S. sales to reach only
200 000 players, worth $181 million, by the end of 2006,
The Washington Post has reported.
Mr. Diotte believes that there is no
guarantee that either HD-DVD or Blu Ray will be the
clear leader a year from now, meaning that next year
sales of next-generation DVD players may also be lower
than expected, which will cost consumer electronics
companies another hundreds of millions revenues not
received. For consumers, the war may result in lower
amount of content available for next-gen DVDs and, if
the consumers invest in one format that will eventually
disappear, they will lose the investment and need to
re-purchase a player, discs, accessories and so on.
One of the ways to revive sales of
next-generation players is to develop a player that
will support both Blu-ray and HD DVD, making a choice
obvious for consumers. However, both consumer electronics
companies that planned such players – LG Electronics
and Samsung Electronics – said they had dumped
the projects.
So far Toshiba’s HD DVD has been
slightly more successful on the market with five-seven
players available starting at $320 in the U.S. and over
160 titles in English and Japanese. Sony’s Blu-ray
is currently supported by three players and over 60
BD titles on the market.
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a pdf version.
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