Blu-Ray Versus Hd-Dvd: a Standards Battle in High-Definition Video

1612 Words Sep 10th, 2011 7 Pages
Case Study
‘Blu-ray versus HD-DVD: A Standards Battle in High-Definition Video’

Discussion Questions
1. What factors do you think influenced whether (1) consumers, (2) retailers or (3) movie producers supported Blu-ray versus HD-DVD?

Every party in this standards battle had its own reasons for chosing one standard over the other. For instance, the motives for movie producers to choose Blu-ray were completely different from the motives for consumers to choose Blu-ray.

In our opinion, the main factors that influenced (1) consumers in their decision to support either Blu-ray or HD-DVD were technical differences, complementary goods and the size of the installed base. Supporting one of the standards, from a consumer-perspective, can be
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When the numbers of sold Blu-ray-players was much higher than the number of sold HD-DVD-players, more and more movie producers switched to releasing their movies exclusively on Blu-ray instead of HD-DVD.

2. Why do you think Toshiba and Sony would not cooperate to produce a common standard?

In practice, Sony and Toshiba didn’t cooperate to produce a common standard because in the development-phase they didn’t agree about which laser-technology to use. Sony wanted to use the more expensive blue lasers earlier on already, while the DVD Forum, chaired by Toshiba had doubts. The DVD Forum decided to create a technology that was based on the ‘old’ DVD-format. A little later on, Toshiba and NEC discovered that this option was not a real solution, but it was too late and too expensive to join Sony. So, they decided to develop their own technology.

It is highly likely that both Sony and Toshiba wanted to create a first-mover-advantage for themselves. By developing the standard for video-playback for the coming years, huge profits could be made. Profits would be made on the sales of blu-ray-players, the licenses sold to movie producers, but most important, the licenses sold to competitors. If Toshiba wants to produce a Blu-ray-player, a license had to be bought from the Blu-ray-licensing organisation, of which Sony is a member. This way, money streams directly from Toshiba to Sony.

3. If HD-DVD had not pulled

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