Forrester: Blu-ray-HD DVD War Will Continue
Study says Blu-ray must cut its player prices.
By Swanni
That's the conclusion of a new report from Forrester Research, as reported by Reuters.
The research firm also urged Blu-ray supporters to cut its player prices or risk an "upset defeat" by the HD DVD format.
The battle between the Sony-backed Blu-ray high-def format and the Toshiba-supported HD DVD has now gone on for about 16 months.
The two sides have been fighting to win support in the industry, with four major studios now backing Blu-ray exclusively while two are backing HD DVD. The other two major studios are releasing their films in both formats.
Paramount's decision last month to switch from neutral to a HD DVD supporter has prompted many to say the war will continue for another 18 months. The studio reportedly agreed to back HD DVD exclusively for at least 18 months.
Forrester notes that while the two warring factions battle for studio and retailer support, few consumers seem interested in buying either Blu-ray or HD DVD.
Consumers are confused over the format war and wary of high-def player prices which exceed the standard-def DVD player.
Reuters reports that Forrester believes that Blu-ray will ultimately win the war, but it said Blu-ray player prices need to be lowered. The lowest-priced Blu-ray player is now $499 while Toshiba has a $299 HD DVD player.
"Weakened by these developments (Paramount's endorsement of HD DVD), Blu-ray needs to offer a viable hardware model at the $250 price point by Christmas 2007," Forrester said in the report. "The Blu-ray camp must also stave off further studio defections, and employ more aggressive promotional tactics to counter HD DVD's recent momentum."
The research firm added that high-def owners are unlikely to spend more than $200 on a high-def DVD player.
"Failure to alter strategy would open up Blu-ray to a possible upset defeat at the hands of HD DVD," the company said, according to Reuters.
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