Studios Losing Revenue In HDTV War
Screen Digest says studios should release films in both high-def disc formats.
By Swanni
That's the conclusion of a new study from the research firm Screen Digest.
The company says studios would make more money by releasing their films in both high-def disc formats. As of now, four major studios back Blu-ray exclusively while Paramount and Universal back HD DVD exclusively.
"Screen Digest believes that whilst Blu-ray Disc (BD) is selling more units than rival HD DVD at the moment, in the longer term both formats will establish a viable installed base, allowing them to co-exist for the foreseeable future," the study said.
Consequently, the company said, Hollywood studios that support one format over the other "could be missing out on significant revenues, potentially eschewing over $270 million of consumer spending in 2008 alone."
Screen Digest said Sony, Fox and Disney, which back Blu-ray exclusively, could lose $175 million next year by not releasing films on HD DVD as well.
With so much at stake, Screen Digest expects several single-format studios to reassess their positions during 2008," the company said.
Warner Bros. has been an outspoken advocate of the two-format approach, despite recent rumors that it was entertaining an exclusive offer from HD DVD. Warner has crowed that its releases are outselling those of other studios because they are available to Blu-ray and HD DVD owners.
Screen Digest says that once the studios realize that both formats will survive, they will decide to release films in Blu-ray and HD DVD.
"We believe that eventually most will decide to offer their titles on both HD DVD and BD in order to maximize their returns." the company said.
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