Report: Blu-ray wins DVD format wars, but faces battle

Updated at 9:15 a.m. PDT with background on the DVD format wars.

Research firm In-Stat has declared a "winner" in the DVD format wars between Blu-ray and HD DVD. And the winner is...

Blu-ray.

In-Stat, in a research report released Wednesday, noted that the Blu-ray and HD DVD format war ended in the early part of the year, and that Blu-ray recorder and player sales are expected to reach 5 million by the end of the year.

With the death of HD DVD earlier this year, some took it a step further, saying Blu-ray's top-dog spot may be short-lived should digital downloads replace the need for Blu-ray discs. But for now, Blu-ray is expected to enjoy its position.

In February, Toshiba said it would stop making HD DVD products, following a two-year war between the HD DVD and Blu-ray formats. Shortly thereafter, the three movie studios that were then still supporting HD DVD withdrew their support and declared they would get behind Blu-ray.

Sales of DVD players and recorders worldwide hit 142 million units last year, according to the market research firm. This year, In-Stat expects a decline in the DVD hardware market because of saturation in some markets and also because DVD recorders failed to grab consumers' interest as DVD players did.

What isn't clear is whether Blu-ray's growth will make up for the decline of HD DVD sales by the time digital downloads of movies become pervasive.

Blu-ray's adoption rate is hampered by the price of the players, according to In-Stat.

Two years ago, a Toshiba DVD player cost $500 to $800, while the cheapest Blu-ray player ran nearly $1,000.

[jandler]

Hey...I own a research firm too! It's called Jandler Co. According to my extensive research. Blu-ray also won the BR vs HD DVD war. Reason: Toshiba gave up.

[gregmar]

Let's see. No one is building HD-DVD readers, recorders, or creating new disks. So, why wouldn't sales continue to decline?

I also love the last two lines. Blu-ray players cost too much or at least they did two years ago. How is that relevant?

[overmonk]

Ummm. Why is this news? To make a page to put ads on, maybe? C'mon. Until we have universal bandwidth capable of delivering HD content essentially on demand (10M or better, IMO), Blu-Ray is safe. No one wants recorders because of all the overlays the networks use to Id their stations and advertise, advertise, advertise. So if you want HD content that is less-marketing intensive, then BLu-Ray is your best bet. HD-DVD doesn't have any studio support at all anymore, and the major proponent/manufacturer of players, Toshiba, has all but abandoned the format.

Even wikipedia lists it as an obsolete format. This article, and the In-Stat survey that underpins it, is a waste of timeand server space - it only exists to justify ad clicks and someone's salary.

[steve4lee]

And in other breaking news, Truman defeated Dewey.

[epross]

How is this news...weren't these same type of stories and same conclusions posted a few months back? This is just saying...now that a few more months have passed, nothing else has changed since Toshiba dropped the HD format.

If Blu ray players and disc prices comes down, more people will adopt. Blu will eventually be defeated by something, just as Beta, VHS, laserdisc, and 8-tracks, cassettes and a whole host of older formats have been pushed aside for newer and better. DVD is only hanging on because it is dirt cheap compared to Blu Ray and there is no advantage unless you have a newer HD display.

Something new always comes along. HD downloads..maybe...but there is a whole lot of work, technology, and most importantly: consumer acceptance that has to take place first. Given the current technology limitations and throttling/bandwidth issues out there...it will be longer than most of its proponents suggest.

I think the real reason Blu Ray won, its name and logo were 'catchier' than HD. 'HD quality on HD DVD' (sounds boring!) 'HD quality on Blu-Ray!' Sounds more futuristic and powerful don't you think?

Breaking news...the automobile is expected to win the transportation war over the horse and buggy. Will declining sales in horse whips be made up for in driving goggles?...let's wait and see folks!

[dredgerie]

this is the second useless entry I've had to endure on CNET this morning...

[benjaminstraight]

It is all about Blu Ray's high price. Nothing matters but the consumers voting with their dollars.

[GlennAllen]

Actually, the winner and still champ of the "DVD wars" is... DVD. Hi-Def--neither Blu-ray nor, obviously, HD-DVD--is not yet King of the Optical Disc. DVD is still "good enough" for the vast majority of people buying/renting and playing discs. Now, once Blu-ray gets cheaper... but will that happen before digital downloads take over? (Do I care?)

[yourinmyp]

You can pick up a Sony Blu-ray player for about $389.00 now, and the Magnavox and Phillips models are close to $100.00 less.
With the Playstation 3 price drop, I'm curious to see the effects

[BluFan]

Thank you In-Stat for the late breaking news!

HD DVD is dead and gone. Every major studio is backing Blu-Ray (and have been for some time now). Maybe I missed something, but I'm pretty sure this isn't a new revelation... Especially since Toshiba stopped manufaturing HD products... I've been working with Warner Home Video on some Blu-Ray projects... If anyone (especially In-Stat) wants more info, they can let me know. :)

[AVFANS-2]

Why no one ever mentioned the unacceptable high price of Bluray movies? New movies on Blu can go as high as $29.99. Older movies in Blu still cost around $22 to $28, while the same title in DVD has been dropping to $7.99 for long time. We are talking about 300% different in price!

Price drop on Blu player will not be attractive to me. If Bluray truly wanted to win acceptance of consumer, price drop on Bluray movies is the real deal.

[GlennAllen]

This just in: Blu-ray losing market share to DVD by almost 15% (down to 8%). If the players AND discs don't get much cheaper, then Blu-ray will remain the small niche in the market that it currently is, or continue getting even smaller in a dwindling market (as downloads take over?).