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Summary:

MIT Technology Review has a great round-up of the conflict between two high-capacity “blue-laser” DVD standards: Blu-Ray Disc and HD-DVD (HD stands for high definition). All this bickering is pointless especially as we head towards a time when video-on-demand, and hosted personal video recorders are going […]

MIT Technology Review has a great round-up of the conflict between two high-capacity “blue-laser” DVD standards: Blu-Ray Disc and HD-DVD (HD stands for high definition). All this bickering is pointless especially as we head towards a time when video-on-demand, and hosted personal video recorders are going to be a norm.

  1. Well, I agree to a point – but you miss out on an important point: that media companies are not going to go for DVR and VOD until they absolutely have to – they’re simply making too much money off of the DVD business.

    So, from the perspective of a media company, both Blu-Ray and HD-DVD are important as they will allow them to utilize their back catalog to create more revenue. Imagine – everyone being forced to buy their DVDs all over again. DVDs account for about 50% of total revenues of media companies – so they are going to promote anything that extends that. VOD and DVRs don’t do that – but the new DVD formats do. VOD is available to over 14 million people, yet it utilized by less than half. That pails in comparison to the revenue potential of any new DVD format. It’s the record companies and CDs all over again.

    I’m not saying that VOD isn’t going to be the norm – we’re already seeing some media companies “cross the line” and think about releasing more media for VOD, but the media companies are going to fight it tooth and nail. Now what the format fight will do is limit the ability of the media companies to profit from the upgrade of the technology – that’s why they need to get on the same page.

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