Blu-ray vs HD-DVD: The Format War Between Sony and Toshiba



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Code : COM0055

Year :
2005

Industry : Entertainment

Region : US

Teaching Note:Not Available

Structured Assignment :Not Available

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Introduction:Since its introduction in 1997, DVD players have become the fastest selling consumer electronic product in history eclipsing the sales of VCRs, televisions and radios. By the end of 2004, almost two-thirds of the US households possessed a DVD player and Americans spent more than $20 billion on buying and renting DVDs. By all accounts, the penetration of DVDs was considered very high compared to the VCRs, which took about two decades to reach 90% of the US households. However, post 2004 the world wide sales of DVD players seemed to have hit the saturation point with a decline in the demand for new players. Even holiday season failed to see appreciable year-over-year growth in DVD sales. Analysts opined that with the rapid rate of adoption of new technology the standard definition DVDs was set to be replaced by the next-generation DVD known as the High Definition DVDs. Bob Chapek, President, Buena Vista Home Entertainment stated, "The DVD market seems to be maturing at a faster rate each month... I used to think we had until 2007 or so before we saw the business really start to peak, but I'm not sure we have that long anymore"...

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