Movie Downloads Take On DVDs

March 09, 2008 04:49 AM
by findingDulcinea Staff
Sony’s Blu-ray has won the DVD war against Toshiba’s HD-DVD format. But movie downloads may prove a more formidable challenge.

30-Second Summary

The Blu-ray format has defeated its competitor HD-DVD. It is rumored that Toshiba will cancel production of HD-DVD players in the coming weeks.

As defeat loomed for HD-DVD in the the DVD wars, Toshiba tried to counter its rival's popularity by offering steep discounts on players. The “hoped-for consumer sales surge never materialized,” states the Hollywood Reporter.

However, Blu-ray’s success has failed to produce the surge in DVD sales that many expected. The Sony format’s victory may only forestall the inevitable. Blu-ray now has to contend with movie downloads if it is going to escape the fate of older DVD formats and VHS.

As DVD sales fall, film studios “are scrambling to introduce an array of initiatives aimed at propping up the broader market,” The New York Times writes.

Hollywood will capitalize on the marketing opportunities of the Internet if it can conquer its “aversion to making big changes to its business model,” writes The Economist. If it fails to adapt, illegal and legal downloading sites will continue to eat into DVD revenues.

The change in methods of media consumption inspired Nielsen ratings to make plans for an “Anytime Anywhere Media Measurement” plan that would track people’s Web and cell phone use. So far, many have refused because of privacy concerns.

Headline Link: ‘Studios Are Trying to Stop DVDs from Fading to Black’

Background: The format battle

Opinion & Analysis: ‘Hollywood and the Internet’

Related Topics: Nielsen ratings and future formats


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