The fact that most consumers do not have an HD-DVD or Blu-Ray player is not surprising. The optical disc industry has done little to invite a consumer to experience high definition entertainment by presenting two competing next generation formats- HD-DVD v. Blu-Ray. At GLMT we are indifferent to which format prevails in the marketplace, but we do believe that a clear format needs to be decided soon for the health of the industry.
Initially, we thought the development of multi-format players or Super Multi Blu players would make the format war moot by allowing consumers to buy either HD-DVD or Blu-Ray titles without regard to compatibility. We envisioned that consumers would be more concerned with buying an entertainment title in High Definition, rather than a specific format because it would not make much difference.
The development and promotion of Super Multi Blu players has been extremely slow to react to a consumer looking to adopt a format. The price remains high for Super Multi Blu ($900) and neither camp seems to be willing to endorse such a concept. Also, the promotions linked with buying a Blu-Ray or an HD-DVD player (i.e. up to 10 free movies) were not extended to the multi-format players during the pre-holiday retail blitz. Due to the lack of promotion behind the Super Multi Blu players the tension increased between the formats and has lead to a slow consumer adoption. A winner-take-all proposition to a consumer looking to make a $400 investment in technology is a risk consumers are smart not to take.
Last Friday, January 4, Warner Bros. dealt a blow to the HD-DVD camp announcing exclusivity to Blu-Ray for their titles in 2008. This caused HD-DVD to cancel their news conference at the Consumer Electronics Show in Las Vegas. This cancellation reaction to the Warner Bros. exclusive announcement was surprisingly public, and some believe this to be the tipping point.
It is unfortunate that this confusing message has been presented to the marketplace. What is clear, is that the only way to effectively watch a spectacular, recently released movie in high definition is to utilize a next generation optical disc format. We believe there will be widespread adoption to a format once it is clear that there is a standard and the players are priced under $200 including an HDMI cable. Given the recent exclusive Blu-Ray news, this may be happening soon.
GLMT sent representatives to the CES conference to get a pulse on the future of optical disc. We are excited to hear their thoughts upon return.
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