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HD-DVD: last throw of the dice

by User Not Found | Aug 21, 2007

Blu-ray has suffered a blow in losing titles from Paramount and Dreamworks but it is unlikely to make much difference to the final outcome. If rumours suggesting these studios received a combined $150m in order to commit exclusively to HD-DVD are right, they illustrate the lengths to which each camp will go to ensure victory, and how much they stand to lose if they fail. The Paramount/Dreamworks decision certainly seems strange given that Blu-ray titles are now outselling HD-DVD by 2 to 1 in the US. And the suggestion that lower HD-DVD player prices are the main reason is very short-sighted - as I pointed out previously Blu-ray player prices are set to plummet, minimising today's HD-DVD advantage. It's still early days in the high definition disc market. Disc sales are still tiny relative to DVD, so there's a long way to go. And the fact that Shrek 3 is not available on Blu-ray may make a few potential buyers hesitate a little longer. But the weight of exclusivity behind Blu-ray, not to say Blockbuster's support and the PS3 effect, will surely tell in the end. This could be HD-DVD's last throw of the dice, and Paramount and Dreamworks are simply helping to postpone the inevitable Blu-ray triumph. Over The Top or Round The Back? Exploring The Emerging Multi-Billion Web Video Landscape, Revenue Outlook and Adoption Scenarios Attend Strategy Analytics' Analyst Forum at IBC. Registration is Free. Add to Technorati Favorites
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