Retailers Blowing Out or Hiking Up Price of HD DVDs

Since the end of the format war which saw Blu-ray emerge victorious, consumers that own HD DVD players have been doing one of two things: returning their players to the store, or stocking up on HD DVD discs while they're still available. After all, "winning" format or not, HD DVD produces some darned good quality content! Over the past few months, however, I've noticed some subsequent changes in how retailers have been dealing with the remaining discs.

The first step was logically to drop the price of HD DVDs. One that might have sold for $30 was all of a sudden $18.99, then $12.99, and so forth. Granted, I didn't see any earth-shattering deals, but the prices were certainly coming down more significantly than they likely would have if HD DVD remained in the market. Lately, however, I've noticed that the prices have gone back up as supply slowly dwindles and the discs become more difficult to find.

Interestingly, I was prompted to observe this by a fellow shopper in a discount retail shop this past weekend. As we stood side-by-side looking through the last few HD DVDs in stock (selling for just $6!), he commented about how the prices were going back up elsewhere. Funny enough, this was only after he proudly advised me that "you can't play that in a regular DVD player, you know?" While I enjoyed a little internal chuckle, I was genuinely quite pleased to see an example of an "average" consumer that appeared to understand the difference between HD and SD discs and was eager to share his knowledge.

Regardless of what the current average price is, the fact remains that HD DVD discs are still more affordable now then they were 6 months ago. If you still own a player, now's primetime to stock up on the last available titles. For now, they'll provide better quality content than you'll get via standard DVD, and will certainly tide you over before investing in a fancy new Blu-ray. And who knows: once these discs are completely out of circulation, you might be able to flip those discs to an A/V collector of some sort for a pretty penny!

HD DVD is Gone, But Has This Really Helped Blu-ray?

It has been more than two months since Toshiba officially announced the end of the high-definition DVD format war by halting production of HD DVD players. The Blu-ray camp sighed a big sigh of relief, and poised itself for an increase in sales. But has Blu-ray really benefitted from winning the format war?

According to a recent study by The NPD Group, it hasn't; or at least not yet. Sales of Blu-ray players actually dropped 40% from January to February in the U.S. From February to March, during the time when the "war" had officially been declared over, there was only a 2% increase in sales.

"That standalone Blu-ray players haven't picked up significantly from HD DVD's loss shows that few consumers were dissuaded primarily by the 'format war'," declared Ross Rubin, Director of Industry Analysis, NPD. "When we surveyed consumers late last year, on overwhelming number of them said they weren't investing in a next-generation player because their old DVD player worked well and next-generation players were too expensive. It's clear from retail sales that those consumer sentiments are still holding true."

I've long said that, rather than focusing on becoming the winning format, both camps should have been more focused on convincing the customer that he needs to upgrade to an HD source, period. Either way, price will remain a factor with budget-conscious customer; not just of the Blu-ray hardware devices, but also software, which are often times almost double the price of a "regular" DVD movie. In fact, I think if the price of software were to drop down to become in line with standard DVDs, more people might be willing to fork over the extra dough for the player.

Interestingly, NPD notes that many consumers who are interested in a better viewing experience are quite content with upconverting DVD players. Sales of these such devices grew 5% during the first quarter of 2008 compared to 2007. Meanwhile, regular DVD player sales dropped a whopping 39%.

Nevertheless, it's only a matter of time before consumers finally pick up on high-definition DVD. Many are already enjoying HDTVs and high-definition TV viewing, so high-def DVD is naturally the next step in the equation. It's also important to note that this study only looked at standalone Blu-ray players: devices like the Sony PlayStation 3 gaming console, which includes a built-in Blu-ray player, has been selling like hotcakes!

Best Buy Next to Support Blu-ray - Canadian Update!

In the previous post, I discussed how U.S. Best Buy stores have decided to support the Blu-ray high-definition DVD format going forward, continuing to offer both Blu-ray and HD DVD products, but with an increased focus on Blu-ray. Well, this situation isn't the case in Canada.

Spokespersons from both Best Buy Canada and Future Shop tell me that Best Buy and Future Shop stores in Canada will not be following suit at this time, and will continue to support both the Blu-ray and HD DVD high-definition DVD formats.

"Future Shop will continue to carry both formats to meet the lifestyle needs of our customers," were the exact words of a Future Shop spokesperson.

This is surprisingly, since Best Buy Canada and Future Shop stores are owned by Minneapolis, MN-based Best Buy. But perhaps the landscape in Canada is different, and Canadian consumers haven't made a clear format preference. If you walk into any Best Buy (or Future Shop) store here, you'll see one side of Blu-ray discs, and one side of HD DVD. Players are also equally out in full force, with HD DVD players arguably more prominent, given the relatively cheaper pricing.

Judging from the U.S. announcement, we won't see such equality south of the border come March. I'm not sure how they plan to display Blu-ray more prominently: perhaps by having Blu-ray discs on a pedestal and HD DVDs in a bin? But with arguably more titles and players available in the Blu-ray format, it only seems logical that Blu-ray would be displayed more prominently regardless of whether a conscious choice was made to do so or not.

Stay tuned for more information as the format war continues.

Best Buy Next to Support Blu-ray

According to Reuters, Best Buy U.S. has announced its support for the Blu-ray disc format. Oddly, however, the mammoth retailers hasn't abandoned HD DVD altogether. Best Buy says it will still offer HD DVD discs and hardware for customers who prefer that format; but will more prominently feature Blu-ray products. The changeover will happen next month.

Whether HD DVD products will still be on shelves or not, Best Buy has clearly made its decision to back Blu-ray in an effort to put an end to the dragging high-definition DVD format war.

Will consumers view this as Blu-ray being deemed the winner? Or will they remain unconvinced, waiting until all retailers, manufacturers, and studios decide to stock and create hardware and software in only one format before taking the plunge? It looks like we're inching closer and closer to an answer.

On the Canadian front, due to the time difference, I was unable to receive clarification in time from Best Buy Canada (and Future Shop) on whether stores north of the border will follow suit with the decision to support Blu-ray. Stay tuned for a follow-up post!

Toshiba, PS3 Lead High-Def DVD Race

According to DisplaySearch, Toshiba led the pack in standalone high-definition format DVD players for the first three quarters of 2007, accounting for 64% more units than all of the Blu-ray manufacturers combined! The research company attributes this to aggressive pricing and promotions, and I'd have to agree: a $99 high-definition DVD player is indeed pretty aggressive! But really, what does this mean? Despite the favourable numbers, the HD DVD format is still dealing with the recent blow from Warner, which decided to exclusively join the Blu-ray camp.

Interestingly, though, DiplaySearch also reports that gaming console hardware, not standalone players, were the dominant shipped high-definition DVD product through most of 2007, accounting for 85% of all global shipments between Q1 and Q3 2007. What's more, revenue growth was more than three times that of standalone players between Q2 and Q3 of last year.

In the case of Blu-ray, it's safe to assume that the majority of PlayStation 3 purchasers bought the console to play games, with high-def movie watching as simply an added bonus (the PS3 has a built-in Blu-ray player. To achieve HD DVD playback on an Xbox 360, one requires a separately purchased player that connects to the console). Nevertheless, sales of the PS3 helped skyrocket Sony into the number-one spot worldwide for Blu-ray players, with the firm having achieved a whopping 97% share in the first three quarters of '07!

Overall, North America accounted for 80% of the worldwide market for high-def DVD hardware in Q3 2007. Worldwide, Sony, Toshiba, and Microsoft made up 98% of high-definition DVD hardware shipments, leaving all the others to fight for that remaining 2%.

Paul Erickson, Director of DVD and HD Market Research at DisplaySearch reinforced a point I've made in earlier blog posts: that the two competing formats (Blu-ray and HD DVD) not only have to compete against each other, but also against the "standard" DVD format, which many consumers are still quite content to enjoy.

"Due to consumer price sensitivity and satisfaction with regular DVD in North America," he said, "the substantial growth needed for next-generation DVD to grow beyond a niche market dominated by consoles will require time, persistence, and aggressive pricing. This is expected to be a dynamic that will persist regardless of whether the market consolidates around a single format, or continues onward with the status quo."

I couldn't have said it better myself. Let's focus on ways to make the players and, even more important, the software titles, more affordable; and added-value features more enticing...not just from one format versus the other, but in relation to the standard DVD experience.

Is an End to the High-Def DVD Format War in Sight?

Arguably one of the biggest announcements made at CES this year was Time-Warner and New Line Cinema's decision to back the Blu-ray high-definition DVD format exclusively. Does this spell an end to the high-def DVD format war? On the one hand, the HD DVD format has movie studio support only from Paramount and Universal, and many predict that it's only a matter of time before they jump ship as well. But on the other hand, HD DVD still has a few tricks up its sleeve.

For one, there's price. Historically, HD DVD players have been cheaper than Blu-ray. In fact, a press release I received this morning indicated that Toshiba dropped the price of its current models in the U.S. as of yesterday to US$149.99 for the HD-A3, US$199.99 for the 1080p HD-A30; and US$299.99 for the HD-A35.

Second is unique features, like twin discs that can be played back on HD DVD players and "regular" DVD players; Web-enabled network capabilities; and free movies offered with every HD DVD player purchase. Then, of course, there are other factors that come into play, like the popularity of Toshiba notebook PCs, some of which now incorporate HD DVD drives; and the growing Xbox 360 market, which offers a small HD DVD player as an optional accessory.

With that said, how many people will appreciate these features if they can't buy or watch the movies they want? When it comes down to it, content is the end goal of the game.

Nevertheless, even if the Blu-ray format emerges victorious, it still has another fight to win: the battle against the standard DVD format. The market might become convinced that Blu-ray is the way to go, but consumers would still need to be convinced that high-def in itself is worth the upgrade. This has been somewhat of a battle in the cable/satellite TV space, with so many consumers owning HDTVs, but not HDTV set-top boxes nor programming subscriptions. It's not a far cry to assume that a similar battle will continue with DVDs.

Whichever way the cookie crumbles, one thing is for sure: once one format remains, regardless of whether it's Blu-ray, HD DVD, or some sort of unified project, marketing will shift more toward getting consumers to upgrade period, rather than getting them to upgrade to one format over another. And really, shouldn't this have been the focus all along?

2008 CES: Simply Beautiful

I'm not referring to CES itself when I say "simply beautiful", although Las Vegas is certainly a very bright and lively city. Rather, simplicity and beauty are underlying themes at the show, which is set to officially commence on Monday, January 7.

Today, Sunday, January 6, was deemed "press day" where major manufacturers gathered journalists of all kinds (including the new "blogger" designation, of which I noticed many) to learn about what's coming down the pike in 2008. The day is stressful, it's hot, you stand in line after line with fellow journalists bumping into you, stepping on your feet, and pushing you to get the best seats in the house or the free swag. But it's all worth it to see what's hot for the new year.

Before I get into all the goodies, I want to first address what's been the talk of the streets, so to speak, here at the show. Warner's decision to abandon the HD DVD high-definition DVD format and support Blu-ray exclusively has really put a thorn in HD DVD's side, and many are predicting that there will be an end to the format war earlier than we had anticipated. I must admit that the loss of Warner is quite a hefty blow, but we'll see how things pan out throughout the course of the show and the weeks that follow.

Now, back to press day. The design/lifestyle theme isn't really a "new" one: consumer electronics products have been looking sleek and sexy for ages. But we're seeing a revitalized emphasis in the flat-panel arena, specifically. I already discussed the expected trending toward thin-bezel designs, and new product announcements proved this to be true. Toshiba announced a new 52" model in its Super Narrow Bezel LCD line that's just 0.9" thin, and can fit in the spot typically occupied by a 46" model! Panasonic is taking the "thin" theme to Blu-ray with what it deems the "world's thinnest" Blu-ray disc drive; while Sharp displayed a 65" prototype LCD that is less than 1" thin and weighs 88 lbs. (and with a contrast of 100,000:1 to boot!)

But there are also other, aesthetically-pleasing enhancements being made in the category. Samsung is adding a "touch of colour" to its displays via a seamless cabinet that eliminates screws on the front, and adds, well, a touch of colour to the frame. Meanwhile, Sony is taking aesthetics to a whole new level with the launch of an 11" OLED TV that's actually available for purchase today! They say good things come in small packages, and they're right. Sure, it's a far stretch from a 60" TV in your home theatre, and lifespan issues persist. But with images so superbly gorgeous, you can't help but stare in awe.

Of course although a nice-looking TV is great, it's what's inside that counts, right? We all know about 1080p, 120 Hz refresh rate, and fast response times that are being incorporated into the latest and greatest flat-panels. But every manufacturer also demonstrated a specific focus on inter-connectivity, either involving the Web itself, and/or among various devices. Take Sharp's new AQUOS Net feature, for example, which provides access via an Ethernet port on the TV to a portal with neat items like sports, weather reports, traffic updates, and even entertainment through partnerships with companies like NBC. Just press a button on the remote, and up comes an interactive menu. J.W. Park, President of Samsung Electronics' Digital Media Group demonstrated a new feature that would allow a video captured on its new camcorder to be wirelessly streamed to a TV, along with its new Series 7 LCDs that would include a built-in Ethernet port and a side-mounted USB slot. Panasonic is focusing heavily on the flash memory card format, incorporating one in many new products scheduled for introduction, ranging from new high-def camcorders, to plasma and LCDs, GPS devices, and even an integrated home theatre system (which also includes a Blu-ray player and iPod dock). What's more, the company (which brands its own SD memory cards) will be launching a 32 GB (yes, you read that correctly!) later this month. Although a price point wasn't announced, we can expect it to be somewhat substantial.

Philips' most promising "integration" device is its BTM-630, which can play back CDs, has an iPod dock, SD card slot, USB port, and Bluetooth technology for connecting with a Bluetooth-enabled mobile phone. It can also serve as a speakerphone for your phone, and even shows the caller information on its screen. When a call comes through, it will automatically pause music, then resume once it's been terminated.

Noteworthy is also Samsung's announcement of its first prototype products using A-VSB mobile TV, an open industry standard for broadcast TV. "It transforms the digital broadcast signal to be able to reach mobile devices,"explained John Godfrey. "Using the over-the-air spectrum, it can deliver things like news, weather, and sports. It turns local TV into mobile platforms."

Snagging the award for the most unusual integrated, connected device of the day, however, is Sony. The Rolly is an egg-shaped device that can play back music from its 2 GB of flash memory or streamed from a Walkman or other MP3 player, a PC, or the new PSP. What's odd about Rolly is that it also dances to that music, rolling and gyrating on the surface with which it sits. "We've created a new way to listen and enjoy music," explained the company's Senior V.P. Rick Clancy. Indeed they have.

That brings us to another theme: simplicity, which was explicitly expressed through taglines like Philips' "Sense and Simplicity" and Samsung's "Life made simple". The focus here is, well, simple. Create products that are easy to use. Sharp takes this philosophy one step further via an Advantage Live tech-support service that would allow the rep (with the customer's permission, of course) access his TV remotely to troubleshoot problems, check settings, etc.

Finally, the last stand-out theme at this show was, by far, environmental initiatives. Arguably the most significant announcement involves the formation of the Electronic Manufacturer's Recycling Management Company, LLC or "MRM", which consists of a partnership among Toshiba, Panasonic, and Sharp. The three companies have joined forces to manage the collection and recycling of electronics within the U.S. The organization has already made arrangements with Hitachi, JVC, Mitsubishi, Philips, Pioneer, Sanyo, and Olevia. Kudos to these guys for taking initiative on helping make the world greener!

So much was announced and discussed today that it would be impossible for me to cover it all here. However, judging from my observations, we can look forward to a lot of simple and beautiful products, enhanced connectivity among all product categories, and an increased focus on helping the environment.

Stay tuned for more information throughout the show.

[Photo: Sony's OLED is just 11" in size, but it packs a lot of punch in picture quality.]

Samsung Bundles Blu-ray with HTiB

Samsung Canada says that, in March 2008, the company will offer a Blu-ray player bundled with a home theatre in-a-box (HTiB) system for an MSRP of $1,499.99. Samsung's latest BD-P1400 Blu-ray disc player currently sells for about $500 in Canada.

This offering will add fuel to the fire of a high-definition DVD format war that doesn’t seem to have an end in sight. Research company DisplaySearch says that we'll likely see a lot of bundles and add-ons in the consumer electronics sector in 2008, and it looks like the high-def DVD arena won't be a stranger to this trend. The HD DVD camp has already been offering bundled deals fore some time, with things like five bonus HD DVDs with the purchase of a Toshiba HD DVD player, and even with select notebook PCs that have an HD DVD drive. This new Blu-ray HTiB offer from Samsung will add another notch in the belt of the Blu-ray camp, and create even more competition on the value side of the fence.

When it comes to which format is actually "winning" the war, various reports state different figures. The latest information from the U.S. National Retail Federation claims that, during the first week of the holiday shopping season (Black Friday), HD DVD players led in unit sales, but Blu-ray led in revenue.

I’m not sure which business model will work: you can sell all the units you like, but if you’re losing money on each, what’s the point? Conversely, you can sell fewer, but more expensive units, which might create a healthy niche market, but could it lead to mass market adoption of your product?

Samsung’s move to bundle a Blu-ray player with an HTiB might just be the answer to the latter question. The 7.1-channel HT-BD2T system will include four tower speakers, three satellites, and a sub, and offer 1,100 watts of power, combined with Dolby Digital +, TrueHD, and DTS-HD. And, of course, a built-in Blu-ray player. A more affordable system, named the HT-AS720ST, will also be available for $599.99. Although it will not come with a Blu-ray player built-in, it will be promoted as being “fully compatible” with a standalone Blu-ray player. This system, available in late March 2008, will offer a 7.1-channel AV receiver with HDMI v1.3 switching, 5.1 speaker package, and a 150 watt sub.

For those who thought a clear winner (regardless of which side) would be in place by 2008, it looks like the battle might just be getting started.

Keeping Track of the High-Definition DVD Format War

Trying to keep track of the high-definition DVD format war is like trying to keep tabs on the invisible man: it's a constantly moving target, and I have no idea where each format is at any given time. Sales of hardware and software, market penetration, movie studio and retailer support, all of which will help determine a "winner", are all consistently shifting. Not to mention that, depending on the source, different numbers are reported everywhere.

Hardware sales in one country are higher for X format; but if you look at numbers from a specific region, Y format is actually doing better. Meanwhile, software sales for one format in a particular store are triple that of the other format; but sales in a much larger retail outlet are double, which equates to much more when you look at the bottom line. It's like high school math problems all over again!

With that said, I thought I'd add some fuel to the fire, and increase the complexity of this math problem. The latest numbers I've received (from the RetailBRIDGE) say that the North American HD DVD Promotional Group is reporting that 750,000+ HD DVD players were sold in the U.S. this past Black Friday weekend. This includes both standalone players (like the one that was selling in Wal-Mart stores for US$99!) as well as the add-on drive for the Microsoft Xbox 360 gaming console.

I haven't heard any comparable figures about Blu-ray player sales throughout the weekend, but I'm sure they're similar in some fashion. It will be interesting to see how HD DVD and Blu-ray software titles sold during the weekend, especially since the National Retail Federation claims that books, CDs, DVDs, videos, and video games accounted for 41.7% of purchases that weekend.

As for the format war itself, if this busy, holiday shopping season doesn't put an end to the fight come early 2008, I don't know what will. But I might just have to track down my old math teacher for some help in figuring out which format is actually in the lead.

Blu-ray and HD-DVD versus HD downloads

From the desk of Lee Distad's Professional Opinion:

There’s been a lot of speculation recently about the future of video content, and many pundits and futurists are looking towards paid downloads as being the Next Big Thing.

It appears that the Next Big Thing is here today. According to a report by think tank Parks Associates, video downloading has exploded. Can High Definition downloads be far behind?

The Morning Bridge: RESEARCH: More Consumers Embracing Online Video
Research from Parks Associates found that the number of broadband households paying for online video content is at nearly 12 million, up from a little more than 3 million in 2005 and 2006.

“We have seen widespread use of the Internet as an electronic delivery medium for video content over the past couple of years,” said Kurt Scherf, Parks Associates’ Vice President and principal Analyst. “Certainly, the availability of higher-quality content and a significant base of products like the iPod that allow for more seamless content-to-device linkages have provided a boost to the online video space.”

That’s a healthy jump in the market, and will motivate content companies to work on bringing High Definition downloads to the consumer, and Internet service providers to increase the size of the pipe coming downstream to consumer’s households.

So, looking forward, does this make the struggle between Blu-ray and HD-DVD for consumer acceptance pointless? Some people think so. The professional prognosticator and CNBC favourite, Paul Kedrosky quipped last March that the format war was: “Two dog packs fighting over a decomposing bone.”
He’s not alone in that assessment, and it’s not unreasonable to posit that consumer acceptance of either disc format has been scant due to hesitation about not only picking the wrong format, but also the wrong medium.

If you look at the phenomenal uptake of HD PVRs into people’s homes, it’s apparent that people want to watch content when they want, how they want, and they want it to be easy. The demand for easy access is clearly there, and when there is a market, someone always comes up with a product for that market.

I’m not saying that Blu-ray and/or HD-DVD will immediately be relegated to the boneyard. There is always a niche that takes pleasure in owning the hardcopy of their music or movies. Reading the posts on hi-fi forums from people who’ve bought into either format, those consumers who have taken the plunge will continue to buy content as long as the studios support it. But HD on demand may become the “third way” and steal a lot of the thunder of HD on disc.

http://businessopinions.blogspot.com/ (For more of Lee Distad's Professional Opinions)

The Format War Drags On

From the desk of Lee Distad's Professional Opinion:

It’s really hard to gauge the state of the marketplace in terms of Blu-ray versus HD-DVD. For a start, there’s so much spin coming out of the marketing apparatchiks for both formats that it’s impossible to get a clear picture of who’s coming out on top. If all you did was read press releases, it would seem like both formats are on opposite sides of a teeter-totter: This week, Blu-ray is the clear winner, next week, it’s HD-DVD!

Talking to friends and contacts in mass-market retail, nobody has been especially impressed with their sell-through on players in either format. And in the casual walkthroughs I’ve done at my local Future Shops and Best Buys, I’ve seen little evidence that either format is getting a big push from the retailers, nor experiencing high demand from mainstream consumers. The aforementioned contacts have all said that there is greater demand and sell-through on DVD players that upscale from 480p to 720p or 1080p.

In the custom integration channel, the consensus for the past year has been to wait and see. Now we are seeing upper-end brands committing to one format or another. Denon is going to release a Blu-ray player, as is Krell (whose player has a suggested retail of US$25,000…), while Onkyo/Integra and Meridian will be supporting HD-DVD. Going forward, the loyalties of custom companies and high-end retailers will fall along the lines drawn by the manufacturers that they already have strong relationships with.

So how is it all going to shake out? Today, my gut instinct says that it’s going to be Blu-ray.

There, I said it.

Given how vocal I have been about Sony’s Playstation3 marketing mishaps for the past year, it takes a lot for me to put that on the record.

Why do I say that? I have a bunch of reasons, all of them anecdotal, ear-to-the-ground type observations. For a start, browsing Internet forums devoted to Hi-Fi, I’m seeing way more threads about Blu-ray players than about HD-DVD players. For another, when I look at the manufacturer names lined up for Blu-ray, there are some serious heavy hitters, even more so than the HD-DVD camp. The biggest of all is Panasonic. The idea of Panasonic climbing into bed with Sony to cooperate on a format invented by Sony is something that would have been unimaginable 10 years ago. The lion is lying down with the tiger.

Bear in mind that it isn’t over; it isn’t even close to being over. Also I have been wrong before. I was one of the biggest loudmouths and promoters of MiniDisc back in the mid-‘90s, and look how well that turned out!

That said, I reserve my right to change my mind later, but this is what I think today, and all of you are welcome to bug me about it later if it turns out that I am completely, horribly wrong.

http://businessopinions.blogspot.com/ (For more of Lee Distad's Professional Opinions)

Could New HD Red-Laser Disc Blow Blu-ray & HD DVD Out of the Water?

Wouldn't it be interesting if, after a year-and-a-half or so of the Blu-ray and HD DVD high-definition DVD formats duking it out for market domination, someone came up with a way to create high-capacity, standard red-laser discs? The existence of such a technology might not be as far off the horizon as you think.

According to Display Daily, a London, England-based company called New Medium Enterprises (NME) Ltd. has developed what it calls the HD-VMD disc (the "VMD" stands for "versatile multi-layer disc") that can store up to 30 GB worth of content using the same processes used for creating standard DVDs.

This means that you can watch HD movies using your trusty, old DVD player (with a firmware upgrade, of course), plus "other off-the-shelf technology". Display Daily reports that, because the discs rely on the same processes currently used to create DVDs, the cost of each disc would be much lower than what one might pay now for a Blu-ray or HD DVD disc (of course it would, in turn, be higher than what you pay for a standard DVD). NME plans to launch a pair of players and discs of the new HD-VMD format next month.

If this technology lives up to its promises, it could mean an end to the format war once and for all. Ironically, it would also bring everyone right back to where we started, with the standard red-laser disc format. Essentially, two camps have been working furiously to find new methods and standards of fitting more information on a disc, offering neat, interactive features, and creating highly-advanced players, only for someone to come out and squash the whole thing by simply finding a way to update the already existing, tried-and-true, method. Of course, we'll just have to wait until next month to see how well HD-VMD performs, and how practical it is to implement. But my question is: why didn't someone come up with this in the first place?

[Photo: The ML 622S HD VMD Multilayer Player from NME Inc. claims to be able to play back high-definition, 1080p content via HDMI, and using the Sigma Designs EM8622L chipset. It can also read all types of disc, including standard DVD, CD, and even MP3 discs; and can playback MPEG-1/2/4, VC1, WMV9, and H.264 video; as well as JPEG and BMP photos. Data transfer rate is 45 Mbps. It is scheduled for availability in the U.S. in Q3 for US$199, and will come in a choice of black, red, grey, or white finish.]

Paramount Abandons Blu-ray for HD DVD

Will the latest decision in the high-definition DVD format war finally tip the scales? It’s a doozie: Paramount Pictures has opted to go the way of HD DVD, leaving Blu-ray high and dry, and giving HD DVD another notch in its belt.

This could represent a big blow to the Blu-ray format: Paramount distributes movies from a number of big names: DreamWorks Pictures, Paramount Vantage, Nickelodeon Movies, and MTV Films, as well as movies from DreamWorks Animation, which are distributed by Paramount Home Entertainment, and, of course, Paramount Pictures. The first titles under this exclusive partnership are highly-anticipated releases: Blades of Glory (with funnyman Will Ferrell); Transformers; and Shrek the Third.

Paramount has, up until now, been one of a few studios to back both formats: the only studio remaining in such a position is Warner. Additionally, HD DVD has support from Universal, HBO, and New Line Home Entertainment, plus software support from HP, Intel, and Microsoft, and hardware support from companies like Toshiba and Onkyo. The rumour mill has also recently been pointing toward the North American adult film industry leaning toward HD DVD as its format of choice. However, this isn't to say that Blu-ray support is suffering: the format has plenty of big names behind it, including Disney, Fox, Sony, Lionsgate, and MGM, plus a slew of hardware manufacturers, like Samsung, Sony, and Hitachi, the latter of which just introduced the world’s first high-definition Blu-ray camcorder.

On the retail side, decisions have been just as evenly skewed: in the U.S., Blockbuster announced that it would sell movies in both formats, but only rent in Blu-ray (this was later confirmed to not be the case in Canada); while Wal-Mart said it would add low-cost HD DVD players to its mix. Most recently, Target (often pronounced by humorous Canucks as “tar-jhay”) said it would offer Sony Blu-ray players exclusively this holiday season, although it would continue to offer software titles in both formats.

It looks to me that, although companies are one by one taking sides (whether via open admittance, or a subtle indication of which way they might, or might not, be leaning), the scales remain pretty much evenly weighted. Sure, each week, something happens to tip it ever so slightly one way, but I think we’re still far from a clear winner in this race.

Sex Sells….HD DVD

The rumour mill is buzzing that the adult film industry has opted for the HD DVD high-definition format, leading many to speculate that this could be the deciding factor in the high-definition format war.

Many may recall that, around the time of the International Consumer Electronics Show in Las Vegas (January), word on the street was that adult film folks were leaning toward the Blu-ray format. Supposedly, the change of heart was brought on by Sony, a driving force in the Blu-ray format, being opposed to associating with adult content. Another possible reason is price: HD DVD is reportedly cheaper to produce. Not to mention that, with the HD DVD format, adult film makers will have the opportunity to make discs in the “twin” format, with HD DVD and standard DVD versions on the same side (albeit likely more expensively than a single-sided Blu-ray Disc, but still less expensive than a separate high-definition disc and a standard-definition disc).

The adult film industry might seem like small potatoes when compared to “regular” movies, but you’d be surprised at the power it could hold in this format war: porn is a billion-dollar industry, and many claim that adult films actually outsell regular movie sales! Meanwhile, back in the 1970s, the porn industry’s decision to utilize the VHS format played a major role in VHS prevailing over Betamax.

The pendulum has been swinging back and forth between Blu-ray and HD DVD over the past year, with Blu-ray always appearing to be one step ahead in the race. In the U.S., Blockbuster announced that, while it would still carry HD DVD in its stores, it would only rent movies in the Blu-ray format, citing customer choice as the driving factor toward this decision. Research firm Parks Associates reported last month that Blu-ray is the front runner in the U.S., when taking both set-top boxes and gaming consoles into consideration. And of course when it comes to studio backing, Blu-ray leads the pack with support from more movie studios, while HD DVD titles are only available from Universal, Paramount, and Warner.

If the adult film industry goes HD DVD, will others follow; and will this spell an eventual win for the HD DVD format? Or will this just put a dent in Blu-ray’s perceived lead, and prolong the war? An even more important question: what advantage is there for the adult film industry to produce films in high-definition at all? Don’t get me wrong, I’m all for technological advancement in any sense. But if TV actors are nervous about HD showing their every wrinkle and blemish, imagine how adult film actors must feel!

HD Player Race: Dual-Format Discs, or Dual-Format Players?

During the 2007 International CES, Warner Bros. announced what many anticipated could be the solution to the ongoing high-definition DVD format war: a Total High-Definition Disc (THD) that would consist of a Blu-ray version of a title on one side, and the HD DVD version on the other. These discs were set to hit the market in the second half of 2007, but now Warner is delaying production. Why? Because only two movie studios offer films in both formats: Warner (no surprise there) and Paramount Pictures. Given this fact, the existence of a dual-format disc can't be justified at this point.

According to the Associated Press, Warner has decided not release THD discs until each studio delivers at least 10 titles in both formats. The firm feels this is more likely to happen by early next year, then by the end of 2007.

In an ideal world, the best solution, would be one, unified, high-definition format. But failing that, THD could represent the best of both worlds, and, most importantly, a win-win situation for the customer.

From the player manufacturing end, a few companies have also taken steps to end the format war. LG Electronics announced a dual-format, Blu-ray/HD DVD player at the 2007 International CES in Las Vegas. Although the first-generation player is limited in its ability to accomodate interactive menu features of HD DVD discs (it offers complete playback of Blu-ray), its very existence solidifies a strong point: why should consumers have to choose?

Meanwhile, Samsung Electronics has also announced that it will debut a dual-format player in time for this year's holiday season, although there has been no confirmation if the player will be available in Canada or not.

Assuming that a unified format is far from existence, the HD format war will likely become a chicken-and-egg race going forward: will more dual-format players come out of the woodwork, eliminating the need for a THD disc altogether? Or will single-format players continue to dominate, encouraging studios to back both formats?

Blockbuster Backs Blu-ray - Update!

I last posted that Blockbuster in the U.S. decided to offer high-definition movies for rent in only the Blu-ray format, abandoning the competing HD DVD format. A representative from Blockbuster Canada has now informed me that, north of the border, the video/game rental chain will continue to rent out both formats to its customers.

"Blockbuster Canada currently supports both Blu-Ray and HD DVD formats in 75 of its stores across Canada," the firm told me. "Currently, there are no plans to alter the distribution of rentals in Canada."

So Canadians, feel free to visit your local Blockbuster to rent DVDs in both formats!

Blockbuster Backs Blu-ray

The high-definition DVD format war persists, with no clear winner in sight (of course, this is depending on who you ask!) But we’re finally seeing retailers put their foot down, and choose one format over the other. In the case of Blockbuster, it has decided to put all of its eggs in the Blu-ray basket.

Well, not entirely: the movie/video game rental chain says it will still carry HD DVD in its U.S. stores, but will only rent movies in the Blu-ray format. According to BBC News, Blockbuster observed that its customers chose Blu-ray over HD DVD in stores where both formats were available. No exact figures were cited, but it's obvious by Blockbuster's choice to go Blu-ray all the way that it was by a significant enough margin.

This could be attributed to many factors: more choice in Blu-ray movies is one. Blu-ray has the support of seven of the eight major studios; whereas HD DVD only has three. However, the HD DVD format has support from many in the PC arena, like Microsoft, HP, and Intel.

Blu-ray has also had better luck with recent releases: the two huge blockbuster titles (no pun intended) as of late, Spiderman (Sony Pictures) and Casino Royale (MGM), are only available in HD in the Blu-ray format.

PlayStation 3 might also play a significant role: I wonder how many of those rented Blockbuster movies are being played back on a family PS3, and not a dedicated Blu-ray player? (Then again, the competing Xbox 360 console also has an HD DVD add-on option, so this might be a moot point).

On the HD DVD side, retail giant Wal-Mart said back in April that it would introduce “low-cost” HD DVD players to its U.S. stores by the end of the year, which led many to assume that Wal-Mart had made its choice. (A representative from Wal-Mart Canada confirmed that the retailer woud continue to carry both formats in Canada).

What do I think? When it comes down to it, it’s the movie titles that matter. Who wants a fantastic, high-definition player if you can’t use it to watch the movies you want? However, on the flip side, another important factor is price, and Blu-ray players have been much more expensive than HD DVD players; in many cases, by a significant margin. With “low-cost” players being introduced in Wal-Mart, a whole new ballgame could begin.

Who will win the format war? Some say it’s too soon to make a choice between the two. After all, they haven’t been on store shelves for that long. But on the other hand, how long can they co-exist without frustrating customers to no end? Only time will tell.