The Battle for High Definition DVD Format Players
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[April 20, 2006]

The Battle for High Definition DVD Format Players

TMCnet Contributing Editor
 
Toshiba's HD DVD player begins shipping to US retailers this week, four months prior to Sony's scheduled release of its Blu-ray format players. The idea is to capture North America - the key market for the new high-definition formats.
 
Analysts say that HD DVD's entry into the market and its considerably lower price tag is likely to give it an edge over Blu-ray. By the end of 2006, Blu-ray players alone will account for only about 30% of the global high-definition DVD player market, according to ABI Research.


 
However, PlayStation 3 could change the scenario. Sony's next-generation game console will play Blu-ray discs. Its large expected sales figures could change the market dominance picture dramatically.


 
Sony’s strong relationship with movie studios is likely to work in favor of Blu-ray format players. But, ABI Research's Vamsi Sistla, Director, Broadband and Multimedia Research says, "The studios' support is not carved in stone, but is based on the perceived size of the market for a particular technology. If studios see that HD DVD has a higher market share, or continues to increase its penetration, they could support it instead of—or as well as—Blu-ray. They don't really care what technology is used as long as it meets their copyright protection needs and enjoys support from the vendor community."
 
Online movie retailer Netflix has said it will support both formats.
 
Content owners and consumers are expected to the share extra costs required to support the two standards. The price of both players and discs are expected to remain at relatively high levels-- longer than if there were a single standard.
 
For more information visit: www.abiresearch.com
 
 
-----
 
Niladri Sekhar Nath is a contributing writer for TMCnet covering telecommunications, service providers and networking.

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