High Definition format wars could expedite transition to electronic distribution
When the video industry decided to move away from VHS there was only ever one real standard - DVD (And no, Laserdisc doesn't count!). Now the industry buzz word is High Definition and DVDs no longer cut-it. So once again, the industry is looking to move to a new standard, the problem is, there are two. High Definition-DVD (HD-DVD) and Blu-Ray are both endorsed by different manufacturers and it looks like both standards are going to be fighting for market share in 2007.
The war has already begun and HD-DVD players are on the market, and Blu-Ray is promising to go mainstream with the sales momentum of the Playstation 3.
Xbox 360 meanwhile will feature a cheap HD-DVD add-on if consumers want high definition content and don't want to pay upward of £500 for a player.
However, whilst the industry cannot agree on a physical medium they all agree that the future is electronic distribution.
I think, unless a standard emerges victorious (Round one to HD-DVD for being first to market and cheaper than Blu-Ray) then the "format wars" will simply speed up the adaoption of electronic media distribution through online video services.
Which is great news for a technology company like us :)
Start investing in companies that have a strong IP portfolio and R&D investment in electronic video distribution technologies! (*cough* Microsoft *cough*) :)
