Analysts forecast a Blu-ray victory for next year... Probably

Rich Fiscus
21 Dec 2007 18:12

Yet another group of industry analysts is predicting that next year will almost certainly see a single dominant HD disc format emerge next year. Unlike recent speculation from Screen Digest, however, the report from Understanding and Solutions includes predicting which side it will be. In their analysts' estimation Blu-ray will emerge as the victor in 2008.
“Blu-ray and HD DVD player prices have been falling since the summer, culminating in Toshiba’s loss-leading sub-$100 HD DVD player, available in the U.S. last month for a Limited time,” said Jeremy Wills, an Understanding and Solutions consultant. “Price reductions in the U.S. have continued into December, with Blu-ray players dropping below $300 for the first time and HD DVD players below $200.”
“Crucially,” added Wills, “Blu-ray benefits from stronger Hollywood studio support and represents a greater proportion of high-definition disc production volumes and disc sales. To date, Paramount’s move to sole support of HD DVD has failed to turn the market, despite the HD DVD exclusivity of key titles Transformers and Shrek the Third. Blu-ray still represented more than 70% of high-definition video sales in the U.S. during the week Transformers was released on HD DVD.”
Not everyone is so sure that the only issue is player price, which is where the disconnect between Screen Digest's prediction of 'one side or the other' and Understanding and Solutions' 'almost certainly Blu-ray' come in. Already this year the dynamic between the two formats was drastically altered when Paramount, originally a HD DVD supporter but eventually format neutral, threw their weight behind HD DVD, reportedly in exchange for millions of dollars in "incentives."
Most analysts seem to agree that if any studio were to drop support for either format it could finally signal the real end to the format war.
Source: Video Business

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