February 5, 2008 12:29 PM PST
FAQ: What's next in HD video fracas?
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This time last year the so-called high-definition format war between HD DVD and Blu-ray Disc had become so entrenched that the buzz at the 2007 Consumer Electronics Show was around combo players and discs, like LG's Super Multi Blue and Warner Bros.' Total HD format. People hoped for a manageable truce that would stop scaring consumers from choosing a side.
Neither combo players nor the dual-format discs really went anywhere, however. And 12 months later the predictions are not of which side will emerge the victor, but exactly how hard Blu-ray backers are laughing all the way to the bank. Convincing Warner Bros. in January to give up its stance as neutral partner to both in favor of throwing all of its Hollywood heft behind Blu-ray was a major coup for the Sony-backed format.
But HD DVD backers have shown they're not giving up so easily, as evidenced by Toshiba's decision to lower prices on its HD DVD players a week after the Warner announcement. So what's next for the beleaguered format and the world of HD video? Here are some answers to the most common questions.
Q: Is the format fight over already?
Not yet, but it's close. HD DVD made big gains at the end of 2007, due mostly to holiday promotions as low as $99 in some cases, to bring the number of units sold to a dead-even tie: both Blu-ray and HD DVD had 49 percent of unit sales for the year, according the The NPD Group, which tracks retail sales data.
The Warner announcement on January 4 represented a seismic shift, though: The week of January 12 showed player sales distributed 90 percent Blu-ray, 7 percent HD DVD, and 3 percent for combo players. The week after, January 19, showed less polarized results, with Blu-ray getting 63 percent of sales, HD DVD 33 percent, and combo players 4 percent. NPD does not normally give out weekly data, and does not offer a more recent update of sales figures.
Momentum isn't the only thing that's shifted. Prices have come way down in the last year. HD DVD players now range in price between $150 and $500, and Blu-ray players between $250 and $1,000.
Of all the major Hollywood Studios only two, Paramount and Universal, have agreements to release their titles exclusively on HD DVD. The rest--Sony, Disney, MGM, and now Warner Bros.--are pledged to Blu-ray. And there's talk that even Paramount and Universal could be persuaded to switch to Blu-ray also when those contracts end.
Q: Is it time to abandon HD DVD?
Not quite. Much was made of Blu-ray's overwhelming sales dominance the week following the Warner announcement in January. But it's hard to base the viability of an entire format on a single week's worth of data since there are other factors at play here.
Toshiba, the main backer of HD DVD, lowered prices on its players significantly the following week, and it's probably not fair to call the game for Blu-ray before all Sunday circulars are updated to show the new pricing ($149 now versus $299 on the HD-A3 model) and customers have a chance to be lured into stores. It's also important to note that there are several "bundling" promotions being offered by a variety of manufacturers, including a high-def video player with the purchase of an HDTV or other electronics item. It's a practice that tends to juice the numbers for both sides.
"Are people organically running out and buying $400 Blu-ray players? Probably not," said Paul Erickson, director of DVD and HD market research for The NPD Group. "Are people going out in droves to buy $149 HD DVD players? Possibly, but obviously not as much as the HD DVD side would want."
And Blu-ray isn't necessarily the perfect solution even if it becomes the default high-def format. As CNET Reviews points out, there are several reasons to proceed with caution still, including the software upgrade process for Blu-ray players, and the availability of your favorite movies and TV shows.
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