Sathnam Sanghera: Business Life
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Forecasting a 1992 general election victory for Neil Kinnock wasn’t a highlight. Neither was the attempt to persuade an uncle to buy a BSB “squarial” instead of a Sky dish in 1990.
Indeed, the nadir of my futurology career came even earlier, in 1989 when, having spent an entire school lunch hour listening to my Walkman, I placed the headphones over the ears of my best mate and remarked: “She’ll be the biggest singer in the world one day. Mark my words.”
The singer was Debbie Gibson. So when Warner Bros, the film studio, announced this week that it had plumped for Sony’s Blu-ray in preference to Toshiba’s HD DVD in the battle to become the standard format in the next-generation video disc market, I saw an opportunity for redemption. I would, I decided, try out both formats and predict how things would pan out.
However, after half an hour of alternately watching The Mummy Returns on a £249 HD DVD player and Behind Enemy Lines on a £399 Blu-ray machine in the Peter Jones department store, a problem transpired: there appeared to be no difference between the two formats.
Andrew Lim, the assistant demonstrating the gadgetry, must have sensed my befuddlement because he suddenly remarked: “To be honest, they’re pretty much the same. They run at the same resolution, carry the same audio. The only difference is that Blu-ray has more storage space and is more expensive to produce.”
An entire morning spent sifting through hundreds of articles on the subject didn’t help to divide the formats either.
If anything, Blu-ray and HD DVD began to appear even more indistinguishable in the light of the discovery that early Blu-ray discs will be limited to half their 50gb storage capacity, and the declaration of a stalemate a few months ago by Sony boss Sir Howard Stringer.
Unfortunately, “can’t decide” isn’t, technically, an opinion and as developing one was the point of the exercise, I’m throwing caution to the wind to make four predictive assertions regardless. The first is that the Financial Times’s John Kay was wrong when, in April 2006, he somewhat timidly remarked: “If you want to place a modest wager, I would put it on Toshiba.”
Things are different now and you could bet your house and family on Sony winning the format war. Blu-ray is not a massively more impressive product, but history has taught us that the best man does not necessarily win a standards battle: Betamax was better than VHS and Apple was better than Microsoft.
Moreover, this is a war that will be resolved by executives, not customers mooching around department stores. Blu-ray has a critical mass of studios backing it and that will drive others to line up behind the format.
However, and here comes the second forecast, despite Blu-ray’s imminent victory, decades from now there will still be some nerds banging on about the superiority of HD DVD.
Should you think this unlikely, I proffer this incredible fact from the Los Angeles Times: Sony abandoned its Betamax product line only in 2002. That’s six years ago. And some twenty years after it lost the war against VHS!
As you read this, there is probably someone somewhere watching Police Academy 6 on Betamax, just to make the point that it offers better picture quality than VHS.
Which brings me to my third forecast: none of the above will make a difference to many of us.
High-definition bores are hard to avoid: they corner us to prattle on about the difference between LCD and plasma, or 720p and 1080i. They claim the leap in technology is as significant as the switch from black and white to colour, and rave that new screens allow you to monitor Jonathan Ross’s blackheads from 50 yards away.
What these enthusiasts don’t realise is that most of us: (a) don’t want to see Wossy’s spots; (b) think standard DVDs offer good picture quality already; (c) don’t follow technological developments obsessively.
I’m thinking here of how only 28 per cent of people over the age of 65 have home internet access against a UK average of 57 per cent, and of my mother who has only just discovered the compact disc.
At the other end of the spectrum, I fear early adopters won’t care either as they are already, or will soon be, on the next big thing: digital downloads.
Indeed, my fourth bold prediction is that Blu-ray’s victory will be a hollow one. It is assumed that the winner will inherit a multibillion-dollar industry but Sony may actually struggle to recoup its development costs if the ultimate dream of couch potatoes comes true and high-definition movies are delivered directly into the living room.
The outcome of the format war could be another illustration of the “last gasp” phenomenon outlined by Daniel Snow in this month’s Harvard Business Review. Professor Snow observes that when superior technologies emerge, old ones don’t just fade away: “Their performance often leaps suddenly, thereby extending their lives and slowing the adoption of new technologies.”
It happened with sailing ships when steam-powered vessels were developed, with steel versus aluminium bicycle frames. The optical discs versus digital downloads battle could be another example. Sony should heed the warning that there is a danger in “mistaking the last gasp as sustainable improvement. This can lead companies to overestimate the prospects of their products, overinvest in trying to enhance them, and wait too long to switch to the new technology.”
In other words, Sony faces a paradox: the impending success of Blu-ray could be bad news for the company because it will distract it from the real task of developing digital download systems. Blu-ray might well turn out to be the worst thing that ever happened to the Japanese electronics company. Mark my words.
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.....but as unsuspecting consumers who have not done their homework discover that their new Blu Ray players are already obsolete what then? Will consumers feel tricked? Some will not care because you can still watch Blu Ray movies on a it's 1.0 standard....I predict a backlash against Sony.....
Rubbishâ¦The people who bought 300-900 ukp Blu-Ray players new exactly what they were letting themselves into (Or should have if they had a commonsense up top). Early adopters nearly always get shafted in this respect however to put it bluntly they have more money than sense (sorryâ¦:-) In a year or so they will be able to buy a player for sub 100 ukp like the rest of us mortals..
âThis is exactly the way I see...The High Definition DVD format needed to be cheap enough to attract more adopters and Sonyâs Blu-Ray never will be cheap enoughâ
The past history does not agree with you I am afraid..Once all the manufacturers get behind Blu-ray the competition will bring prices to sub 50-75 uk.
Steve, Stockport, Cheshire
This reminds me of those who insisted that vinyl would be dead in a matter of years. Instead new, smaller, record companies are springing up, mainly in the US, providing vinyl for a growing band of customers. I have gone from having the latest in CD technology to reverting to vinyl. I still have Betamax cassettes, and yes they do play better, though some of my tapes are over 20 years old. That said DVD offers vastly superior image quality. Like all technologies there will always be advocates for the old. Leema, for example, have a dedicated phono pre-amplifier for those of us who still play 78 rpm discs, accommodating different types of vinyl. It's too early, therefore, to write off HD DVD
Steve, London, UK
Why is no one objecting to the fact that the battle looks like being decided not by competition but by the studios, and Sony is one of them, colluding and preventing release of films in HD DVD as well as Blu Ray? I don't know which one would win but at least there would be some limit upon the monopolistic profits that you can expect Sony to reap once it has driven the competition out of business.
Ian, Frederick, USA MD
Blu Ray is winning the format war but as unsuspecting consumers who have not done their homework discover that their new Blu Ray players are already obsolete what then? Will consumers feel tricked? Some will not care because you can still watch Blu Ray movies on a it's 1.0 standard. But others will wonder why they should buy a new machine to enjoy features such as Picture In Picture (PIP), connect to the internet and download additional content, and take part in community screening, all which is currently offered now in the cheaper to produce HD DVD format. Time will tell but I predict a backlash against Sony in particular as some consumers will undoubtably feel that they have been taken for a ride. A ride back to the store so they can pick up another Blu Ray player for still more of their hard earned money.
Ray, Las Veags, Nevada, USA
What will you do when hundreds of gigabytes of movies on your set-top box, PC hard-drive failed? What will you do when your internet connection is having problems or the movie download service is down just when youâre having the family around to watch movie? It is not as convenient as you make it out to be. Instead of relying on some sort of software to find a movie, you simply pick one at a store, pull one off your shelf, or from under the bed and start watching!
On top of that, you donât download the true high-definition movies from these services, but rather compressed movie file that looks like an upscaled DVD, with average audio quality, loss of depth, lack of features and whatnot that a physical media with vast amount of space offers. The technology has not progressed far nor penetrated many homes either. For all the pie in the sky promoted by various ISPs, etc, it will be YEARS before they really get there even in within the US.
continued in next comment-
Dew, London,
I think blu ray Is the same as HD DVD so why cant we just have both? We have MickyD's And Burgerking, Microsoft and apple, directtv and dish network. Why cant there be HD DVD and Blu Ray??? The only thing that really bothers me about it is that Sony is not working fast enough to develop the format to its full potential. So not that I favor either one of them but if sony is going to screw everyone 3 or 4 times before the players are right then why choose blu?
Randy, Strasburg, VA
You still have to pay for digital downloads. Just like DVD is cheaper than Blu-ray, SD downloads are cheaper than HD ones, but both expire after a certain time. You'd never own a DL unless you bought it. DL still take a long time to DL and take up HDD storage space. Thus the reason why everyone buys CD, DVD, Blu-ray anyway, to own that small piece of the media and hold onto it. What better way to own it than in Blu-ray. Digital downloads is not going to be the wave of the future but only something people will do to watch something they don't care about owning.
Al, Chicago, USA
I feel sorry for the HD-DVD owners saying they will go back to DVD. I had a CDi but when that failed I didn't go back to VHS to spite DVD. So wake up HD-DVD fanboys the futures here and its Blu
Rich, Walsall, West Mid's
Nobody cares. 95% of people have sufficient quality with DVDD.
This is *not* VHS vs DVD.
Steven, Oldham, UK
With regards to digital downloads - even if the infrastructure for ultra high speed broadband was available, what happens when you can't get online for whatever reason?
Exactly....no film.
Sathnam, stick to the business news mate.
Taz, Manchester, UK
Great stat of the 28% over 65 market. This completely illustrates the point that hi tech companies are doomed because that can't seem to grasp the senior citizen market.
Frank, Phoenix, AZ,
Its funny how people predict that "this will be the very last phisical format", due to the media downloads.
But the sin of these people is to predict the way the world will behave, like if everyone on were like them: surrounded by the most recent technology.
What they forget, however, is that not everyone has the most powerful PC model, or is paying high bucks to hire the fastest internet service availiable. Actually a huge lot of people still don't even have a PC at home. But this won't stop them of watching the movies, when they can simply go to the nearest rental store. Prolbem solved.
And if even in developed countries like England and USA things can be like that, wonder how it is like in the rest of world. It is a really huge market, and cannot simply be ingored.
The reality is that ultra-broad band still isn't isntalled everywhere yet, and where it is, it still is expensive. It still has a lot to evolve, and it will still take several years.
Meanwhile, Blu-Ray fills the gap.
Leonardo, Sao Paulo, Brazil
it will be a hollow victory for sony. whoever had 500 million usd to pay to warner would have invested it best in digital downloads. i am completely optical disk free and i'm not even an early adopter. toshiba is into hard disks big time and that's where content is going.
tom french, korschenbroich, germany
"..but..but..digital downloads!"
Harley, TN,
This is exactly the way I see it as well. The High Definition DVD format needed to be cheap enough to attract more adopters and Sonys Blu Ray never will be cheap enough. HD-DVD might have been able to do this as it costs considerably less to manufacture and uses a lot of the existing processes used now in the making of Standard DVD players and disks.
If the price of Hi Def players isn't near to that of standard players then people won't bother and will skip them all together and start using digital streaming/downloads. I get about 30% of my HI Def TV this way already. I really hope Blu Ray doesn't win or HI DEF DVD players will become uneconomic & pointess to own.
Jon, huntingdon, UK
How will Blu-ray only use half of it's disc capacitry, there are already BD-50's out on the market, with Adam Sandlers Click being the first a long time ago. Sorry, but you sound like a HD-DVD fanboy to me, this article is full of it.
Jay, Lancashire, UK
"could be bad news for the company because it will distract it from the real task of developing digital download systems"- that is stupid because broadband across the world has not developed enough for people to be downloading 25gb 1080p video files
daffo, shepparton, AUS
blu-ray is the winner. Live with it. You can spin all you want, but still blu-ray is the winner. Nice meeting you hd-dvd's fanboy, time to move on.
Guest, Chicago, USA
im getting sick of all these theories, all these what ifs. all these pointless articles that go against what the wide consensus is.
- "blu ray has won"
- "blu ray may be worse off"
- "how hd dvd can benefit now that the war seems over"
all these silly theories to give either side hope or leverage in arguments.
stefan, Adelaide,
"Blu-ray is out selling its rival HD-DVD almost two to one. "
This is pretty unimpressive when you consider there are something like 10 times as many blu-ray playing devices in the market.
"everyone thought nobody is willing to abandon their huge VHS collection in favour of a new technology when we have seen simalar media in the past like laser disc fail to replace the trusted VHS."
Do you have any idea what you're talking about. Laser disc existed LONG before VHS. It was not some NEW technology that came along to battle VHS. It had pretty well died before VHS had even beat betamax. Do a little reading before you type something that makes you look like you're 15 years old.
All that being said, its clear blu-ray will be the winner. The question this article poses, and justifiably so, is what exactly is blu-ray winning? Depending on how long it takes for consumers to adopt the format (likely it will take YEARS). It wasn't until 2003 that DVD finally outpaced VHS install base.
vc, new york, new york
In regards to Jason's comments:
I don't see how you need to download 25GB of a movie if you don't care about all the special features or the multi language support.
If I just want the main feature in 720p, English DD 5.1 that isn't going to be 25GB. I think this may be the point he is trying to make with digital downloads. Similar to downloading mp3's, you don't get the cool album art etc, you just get the meat and potatoes.
(Full disclosure, I own a Toshiba A3 ;-) )
mgreene, Boston, MA
I totally disagree with your statements. First off, Blu-Ray is NOT just a Sony product. It is the product of a myriad of companies in which Sony played a large part. (Whereas HD DVD was basically Toshiba and Microsoft.)
Physical Media vs. Downloaded Media is an altogether differnent topic. Is Apple currently producing high quality hardware? YES. Miraculously, they are also doing downloaded media with Itunes. They are doing BOTH just fine. Has digital media downloads REALLY killed the Compact Disc? NO.
If the future is downloaded media, and one of your key points is that 28% of those over the age of 65 AND only 57% have internet access (of which, how many of them have HIGH BANDWIDTH access?) how do you propose that the other 72% of those over 65 and the other 43% get their downloaded media? With that one statement, you've contradicted the possiblity of downloads BEING the future. Odd, indeed.
Blu-Ray is the future.... either hop on board, or be left behind.
Frankly, Denver, USA
If your mom is just now discovering the cd then.... well she has many problems deeper than her deciding blu-ray to hd-dvd or blu-ray to digital download. I for one and everyone else I know doesn't want to have all of our movies on a hard drive. I want the physical copy that I can hold and take anywhere I go if I want. Digital downloads for movies have been hyped for quite a while now and I for one won't jump on that bandwagon. My 1080p Blu-rays are all I need. And if I was a hd-dvd supporter I would say the same thing about that format. I won't download my movies just to see my hard drive crash!
Christopher, Milwaukee, WI
Heh, i'll mark your words alright.....EPIC FAIL.
Have fun waiting for your HD movie download to finish....hmm...3-4 days from now.
Your God, Heavenly Earth, Anywhere
this article doesn't make any sense! Sounds like a guy bought a HD-DVD player last week and now whining about it.
Sony is a well run company.Sony unlike Apple and Microsoft, which talk about online download all the time but don't have any content business of their own, in this regard, Sony has a big advantage. Sony Pictures studio is number one movie studio in 2006 with 18% market create movies like Spiderman, Superbad and many more.
Another thing is physical distribution channel like Walmart and Target. If online download take off, they will stand loose like few billions dollars out of 50 billion DVD market. Do u think Walmart and Target will support Microsoft and Apple?
I predict physical distribution channels will side with Sony on this one. This will start to show in the hardware front. U can't download hardware. Sathnam Sanghera, take out your fork and knife, you are going to eat your words.
smoothn00dle, brisbane, queen
You thought Debbie Gibson would be the biggest frmale artist? You were wrong it was MADONNA.
pj, colorado, usa
Success is the greatest failure any company can hope for. Clearly consumers won't have all the benefits of the format war, and will be stuck with a unified choice for HD video until the government gives us T1 lines.
Sometime, just for fun, you should try to download 25 Gigabytes of data to view a movie ,and then do a report on how the internet will change movie viewing forever.
Jason, Los Angeles, USA/ California
Good article, good points. Just one thing: Betamx survived as the industry standard in video production. Consumers weren't using it, studios and broadcasters were. It was killed by the shift to digital technologies by Sony, Panasonic and Toshiba, the big three in studio systems and transmission.
Gareth Pughe, Tokyo,
360 fanboy
guf, huton, pariz
--- "Blu-rayâs victory will be a hollow one" ---
--- "Blu-ray might well turn out to be the worst thing that ever happened to the Japanese electronics company" ---
I disagree with your statements!
Blu-ray is out selling its rival HD-DVD almost two to one.
For example I own two pieces of Blu-ray hardware (Playstation 3 and an Alienware Laptop with the drive fitted) and I have no HD-DVD players nor do I intend to own one.
When DVD's first came onto the market everyone thought nobody is willing to abandon their huge VHS collection in favour of a new technology when we have seen simalar media in the past like laser disc fail to replace the trusted VHS. Right now my VHS collection is in storage and has been for 5 years.
The issue with digital download systems and that Sony must work on developing their own is a good point but with the format wars between Blu-ray and HD - DVD going to end much quicker than expected in my opinion.
Krishan Veerappa, Wakefield, UK