Our Sony DVD player is aging and I’ve started toying with the idea of replacing it with an HD player. The obvious wrinkle is that there are two incompatible, competing formats for HD players and discs: Blu-Ray and HD DVD. I did some research and I believe HD DVD is going to win but I’m not confident enough to buy an HD DVD player quite yet.
There are a few basic issues related to adoption of the players: technological differences, studio support, and cost. While HD DVD is currently only winning the ‘cost’ factor, I think this factor trumps the other differences.
First, related to technological differences, the formats are more or less the same with the exception of disc capacity. A Blu-Ray disc holds more than an HD DVD disc. I don’t think that, at this time, users are affected at all by the lower capacity of HD DVD discs. HD DVD discs can hold something like 8 hours of HD footage. That’s better than a DVD and I’m sure it’s good enough for consumers. I think this is basically a non-issue.
Next, regarding studio support, Blu-Ray appears to be winning the battle of studio support thus far. The big studios who do not support HD DVD are Sony, Disney, Fox, and MGM. Disney appears to be softening their stance and may support HD DVD soon. HD DVD does have the backing of the adult film industry and this may prove very important in driving HD DVD player and disc sales.
Finally, the issue of cost is at this point clearly in favor of HD DVD. The cheapest HD DVD player can be purchased for around $300 while the cheapest Blu-Ray player is around $500. In addition, the cost of producing HD DVD discs is much cheaper than Blu-Ray. This is important for relatively smaller studios such as those in the adult film industry. They’ll clearly favor creating HD DVD discs in the short term.
Complicating this comparison is the fact that Sony is bundling a Blu-Ray player in the PS3 console. Sony is losing money in an attempt to push Blu-Ray players onto consumers. It’s not clear how much money either format has behind it and is willing to spend on their format.
At this time, the picture of who is winning is murky. Blu-Ray disc sales are beating HD DVD sales but the total number of discs sold is so small that this lead is fairly meaningless. In terms of number of players sold, Blu-Ray is winning if PS3 sales are counted. When only standalone players are considered, HD DVD players are selling much faster than Blu-Ray players. At this point, it’s clearly too early to draw any conclusions about who will win based on sales or discs or players.
I think that HD DVD players may be the big electronic item for this Christmas. This is especially true if Wal-Mart can sell a player for less than $300 as is rumored will happen. Any consumer with an HD TV who is looking to replace an aging DVD player will see the letters ‘HD’ before ‘DVD’ and understand that this is the player they want for their HD set. I think the Blu-Ray names hurts Sony in this respect but it’s not necessarily clear how Blu-Ray discs relate to DVDs. Advertising will have a lot to do with the public’s perception of what each format is.
In any event, as long as Blu-Ray players are hundreds of dollars more expensive than HD DVD players, there is no way that people will buy the more expensive players, even if studios initially support Blu-Ray. Consumers who buy an HD DVD player are unlikely to even know that not all studios support their player until they try to buy find some movie from MGM or Sony. When that happens, they’ll simply opt for the standard DVD of that movie and play it in their HD DVD player which will nicely “upconvert” it to high def.
The only scenario I can see that would make Blu-Ray gain more traction is if the cost of Blu-Ray players fell to within $50 of HD DVD players. At that price differential, consumers would then start to question the features of the two types of players. If this happens, I can see HD DVD losing the format war fairly quickly. However, i think that the HD DVD cost advantage will play out for at least the next year or two.
After the initial bumb in HD DVD player sales at Christmas, I’d imagine that over the next year all of the studios (except Sony) will start supporting both formats. Over the next several years, Blu-Ray will die a slow death and eventually studios will start abandoning it in favor of HD DVD. When the first studio makes this move, we’ll know that the format war has ended.