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Blu-ray skips

In January this year, Sony and its supporters managed to gain the upper hand in the so-called “war of optical formats”. The Blu-ray format proposed by Sony was able to win the recognition of most Hollywood studios, forcing Toshiba, which developed an alternative HD DVD format, to abandon the continuation of the already protracted confrontation.

The victory seemed to come in time – the slowdown in DVD sales was just beginning to worry copyright holders. However, it seems that the moment was still missed. Recognition of new technology takes time, and the winner of Blu-ray did not have it. Consumer attention has already begun to shift to other options, such as digital download services opened by Apple, Netflix and Amazon.com. The situation is such that Blu-ray can go to the dustbin of history, without having time to win public recognition. “We’re seeing the window of opportunity for Blu-ray close quickly,” says Jagdish Rebello, Lead Analyst at iSuppli. – The question is: does Blu-ray matter at all??”

Of course, it’s too early to completely write off Blu-ray. Although researchers at the NPD Group reported a 40% drop in January sales, Sony and its supporters point to a lack of turntables in the retail chain as the main reason. Increased production is expected to help remedy the situation. Some confirmation of this maxim is the increase in sales by 2% in February, when the number of players increased slightly. Meanwhile, data for April published by Sanford C. Bernstein & Co., show that sales of new format discs will increase the total market volume for the year by only 1%.

According to analysts, the real reasons for Blu-ray stalling are high prices, both for equipment and for discs. In addition, the promotion of the new format is hampered by the fact that, in fact, it is a development of the previous technology and does not provide a revolutionary increase in consumer qualities, which at one time was provided by DVD technology compared to VHS.

However, Hollywood has good reason to push Blu-ray aggressively – the discs cost $ 4-5 and their wholesale price is $ 17. The smell of profit is forcing the Blu-ray camp to prepare for yet another battle for shoppers’ minds and wallets, which is reportedly slated to begin mid-year when Blu-ray Profile 2 players become available.0.

Source: Business Week

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