Blu-ray vs. HD DVD

RECENT NEWS
Forbes  Aug 31  Comment 
The current fretting over who will win the battle between cable and over-the-top on the internet (“OTT”) reminds me of the battle between Blu-Ray and DVDs; it was a battle between dinosaurs just before extinction, in the case of dinosaurs by a...
Forbes  Aug 23  Comment 
The hugely successful movie Dragon Ball: Resurrection of ‘F’ will finally get a home video releases on DVD and BluRay later this year.
Forbes  Jul 31  Comment 
In a very welcome move Disney have announced that they plan to release the Collect Works of Hayao Miyazaki as a set on BluRay, this being the same set that was released in Japan in June of last year.
Forbes  Jul 5  Comment 
Over at this year?s Anime Expo, RightStuf recently announced that they have plans to bring a lot more Gundam anime out in the West in the coming future. With the classic Mobile Suit Gundam to receive a full release on BluRay, including both the TV...
Forbes  May 22  Comment 
It makes sense that Clint Eastwood's American Sniper came out on Blu-Ray and DVD this past Tuesday, since we're heading into the Memorial Day weekend. The Bradley Cooper war drama was an astonishingly successful and zeitgeist-capturing release....
Forbes  May 12  Comment 
The Ultra HD ?4K? Blu-ray, announced several months ago, now has official specs and a pretty boring logo. Here are all the details.
Forbes  Mar 27  Comment 
Director Christopher Nolan's epic science fiction adventure Interstellar arrives on home entertainment next Tuesday, March 31 -- it is already out on Digital-HD -- and brings with it not only a gorgeous transfer of the film but also hours of...
Forbes  Mar 24  Comment 
Does Peter Jackson's final trip to Middle-Earth deliver an irresistible Blu-ray? Does it keep the 3D flag flying? Um, actually, no, it doesn't.
Motley Fool  Mar 9  Comment 
The three factors that are required for a decent 4K video experience are finally coming together; 4K Blu-ray discs will provide a final, crucial piece of the puzzle.
Forbes  Jan 17  Comment 
Back at the end of 2013 a rather momentous anime release likely slipped under the collective radar of many people. It was a complete collection of arguably one of the greatest and most influential anime series of all time, that of the original...




 
TOP CONTRIBUTORS


In February, 2008, the battle for supremacy in high-definition DVD technology ended. Toshiba surrendered to Sony in the most expensive format war since VHS videocassette format trumped Sony's Betamax in the 1980s. Toshiba and other HD-DVD supporters like General Electric Company (GE) and Microsoft (MSFT) must now shift their focus to phasing out the HD-DVD format in the least painful way possible. This means reducing the price on the Toshiba's remaining HD-DVD players and providing customer support to HD-DVD customers.

In its late stages of the battle, and HD DVD and Blu-ray made their best efforts to gather disk and decoder/reader manufacturers, media companies, and retail outlets to their respective sides. Blu-ray had a string of victories, gaining endorsements from major rental companies Netflix and Blockbuster, and in January 2008 the production company Warner Brothers announced that it would support the Blu-ray format exclusively. Meanwhile, the top two DVD retailers in the United States, Wal-Mart and Best Buy, announced in February 2008 that they will showcase Blu-ray over HD DVD and phase out the latter in the long term. Toshiba's HD DVD continues to have the support of the other major Hollywood production companies, including Universal Pictures and Paramount Pictures, but this may change with the recent votes of support for Blu-ray by the key distributors.

Blu-ray technology, developed by Sony (SNE), got a slower start and is a slightly more expensive technology than HD DVD (Toshiba's competing product), but its proponents argue that Blu-Ray's larger storage capacity (25GB for a single layer disk and 50 GB for a dual layer, nearly twice the capacity of HD DVD) make up for the price difference. Blockbuster's announcement in summer 2006 that it would carry Blu-ray DVDs (adding a limited selection of HD-DVD after a year or so) was the first indicator of shifting favor away from HD DVD and towards Blu-ray as the main high definition technology. In January 2008, Warner Bros. announced it would release high def DVDs in Sony's Blu-ray format only, joining several other production companies and ensuring that in 2008 roughly 70% of new releases will be in Blu-ray. The two formats are incompatible, meaning that buyers of HD DVD players cannot play movies issued in Blu-ray, and vice versa.[1]

Error creating thumbnail
Blu-Ray movies are prominently displayed in a New York store.

February 2008 seemed to deal the final blow to Toshiba's format. In the same week, Wal-Mart and Best Buy announced their intention to focus on Blu-ray, and after a weekend flush with Japanese media reports that Toshiba would pull the plug, the firm announced that it would review its HD DVD strategy with an end to operations sure to be the outcome. A variety of factors, from marketing to management strategy, played into Blu-ray's ascent and HD DVD's swift decline, but it appears that the approximately 1 million customers who have purchased HD DVD equipment as of February 2008 will soon possess outdated technology and have no recourse but switch to Blu-ray or pursue digital options if they hope to watch newly released movies from home.[2]

Overview

Although several companies have introduced decoders (used in DVD players) that can read both Blu-ray and HD DVD, the two optical storage formats cannot coexist in equality forever. Many companies are deeply invested in one side or the other, and all of the major players take the position that customers will benefit from the compatibility and expanded content choices that a single format in the industry can offer. There are also a number of companies who will "win" no matter which format emerges dominant.

  • NVIDIA's graphics hardware and technology is vital to both high-def formats.
  • Moser Baer India Limited is a leading producer of DVD disks for both Blu-ray and HD DVD.
  • MIPS Technologies and Seagate produce high-performance processor cores and hard drives that are required for all high-definition activity, regardless of whether the disk played is Blue-ray or HD DVD.
  • Broadcom (BRCM) and Sigma Designs develop high-performace semiconductors for use in both HD DVD and Blu-ray players and recorders.

Blu-ray Winners

  • Sony will benefit tremendously if Blu-ray wins out over HD DVD. One of the technology's biggest supporters and its initial developer, Sony will benefit from selling both Blu-ray optical drives/component parts and Blu-ray-formatted DVDs of its vast movie collection.
  • Oerlikon, Nichia, and Sharp are examples of Blu-ray-applicable semiconductor/optics manufacturers who stand to gain.
  • The Blu-ray camp also includes: Apple, Dell, Hitachi, HP, JVC, LG, Mitsubishi, Panasonic, Pioneer, Philips, Samsung, TDK and Thomson.
  • DTS, previously the unequivocal loser in the DVD audio market, has now had its audio technology mandated as one of the Blu-Ray standards, giving it the chance to compete in the home entertainment market in a way that it never could before.

Blu-Ray Losers

  • Dolby Laboratories' AC-3 technology is the exclusive standard for DVD audio formatting and playback; with the adoption of Blu-Ray, however, its HD audio formatting must compete equally with DTS, as both are now required to be on every Blu-Ray disc.

HD DVD Winners

  • Lite-On IT (TPE: 8008) is a Taiwanese company that manufactures HD-DVD optical disk drives for Xbox.
  • Microsoft has thrown its bulk behind HD DVD almost out of necessity (game console rival Sony and computing rival Apple are both Blu-ray supporters). Microsoft's gain from an HD DVD win is not so much in a direct earnings rise--the greatest value might be in the significant setback that HD DVD supremacy would be for Microsoft's major competitors.
  • Toshiba and Intel are also in the HD DVD camp, having played important roles in the format's development. (Toshiba especially was a pioneer of HD DVD technology). Toshiba has been cutting prices and intensively marketing its HD DVD players in hopes of keeping consumers interested in the format.

Comparison

Blu-Ray HD-DVD
Capacity
Single Layer (Gigabyte) 25 15
Dual Layer (Gigabyte) 50 30
Theoretical Limit (Gigabyte) 200 60
Security Measures Mandatory HDCP Encrypted Output, ROM-Mark Watermarking Technology, BD Dynamic Crypto (Physical Layer), Advanced Access Content System Mandatory HDCP Encrypted Output, Volume Identifier(Physical Layer), Advanced Access Content System
Retail Price Comparison
Babel (Movie) - $27.95 Babel (Movie) - $27.95
Cheapest Available Playstation 3 (40GB) with Blu-Ray Capacity - $399 Cost of XBox 360 with Additional HD-DVD External Drive - $498
Samsung BD-P1000(Cheapest available stand-alone Blu-Ray player found) - $489.77 Toshiba HD-A2 (Cheapest available stand-alone HD-DVD player found) - $329.99

References

  1. The New York Times, "Warner Backs Blu-ray, Tilting DVD Battle," 1/5/2008
  2. Silicon Valley News, "Toshiba says it may end HD DVD business," 2/18/2008
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki