As expected, Toshiba has officially withdrawn from the HD DVD business this week. This comes a little over a month after Warner's big announcement to support only the Blu-ray disc format. There are many reasons that a Blu-ray win means a consumers loss, I'll try to go into some of them in this article.
HD DVD was a finished product from the start where as we're still waiting for a Profile 2.0 Blu-ray player. Blu-ray has 3 "profile standards"; the original was Profile 1.0 (also known as "Grace Period Profile"), which has a very basic set of features that don't provide for Picture-in-Picture capability or an Ethernet connection for online features. Now we are starting to see Profile 1.1 players, known as "Final Standard Profile." By that name you would figure that is the "final" profile as the name states. WRONG. Profile 1.1 includes a secondary video decoder, which allows for Picture-in-Picture bonus features but still lacks an Ethernet connection. Finally, Profile 2.0 also known as "BD-Live" includes the Ethernet connection for movie updates, new movie trailers, online discussions, and other features requiring an internet connection.
Currently only the Playstation 3 (PS3) is updatable to Profile 2.0, due to the computer processor and built-in internet connection. This leaves other Consumer Electronics (CE) vendors scrambling to create a player as full featured as the PS3 and at a competitive price. It is widely known that for the first few years on the market, game console makers take a loss on the hardware hoping to make it up with game sales.
HD DVD hardware and software are cheaper and easier to produce. Hardware prices for 3rd generation HD DVD players started at $150, where as current generation Blu-ray players cost $400 and up. You can find older Blu-ray players for less than that, but those players have major issues. Players like the Samsung BDP-1200 are currently the center of a class action lawsuit for not working properly on all Blu-ray discs. This is a direct result of it being a Profile 1.0 player and not being able to play newer discs that include Profile 1.1 features.
HD DVD discs are cheaper to produce due to a number of factors, the first one being that regular DVD replication lines can be converted into HD DVD replication lines fairly easily and cheaply. For Blu-ray discs, a complete new line is needed, which leads to much higher startup costs. There were also many reports saying the yield for Blu-ray discs was around 40%, with more than half of the discs coming off the manufacturing line being thrown in the garbage. Sony has gotten the yield rate up, but the larger 50GB discs still have some yield problems.
HD DVD/DVD provides combo discs. Another bonus for HD DVD is they can produce discs with HD DVD on one side and DVD on the other side. This brings the cost of the HD DVD up a little bit, but the combo disc prices are equal to most Blu-ray discs. This does eliminate the benefit of cheaper media, but gives people the versatility to watch the movie in the car or any other their other regular DVD players.
HD DVD has no region coding, which means you can purchase movies from anywhere in the world and be confident you can watch the movies on your player. This is especially important for people living in Europe and smaller countries, which don't have huge Hollywood blockbusters and must wait a long time for movies to be released in their country.
Cheaper licensing fees. Sony/Phillips charges a $30 licensing fee for each Blu-ray drive, whereas Toshiba only charged $18 for each HD DVD drive. Considering regular DVD players can be had for as little as $50 now, it seems that with a $30 royalty fee Blu-ray players will have a hard time ever making it to that price level. Electronics companies creating regular DVD players are being charged a $5 fee.
HDi vs. BDj. HDi and BDj do the same thing but are very different. HDi was developed by Microsoft as the interactivity layer of HD DVD. This is the programming environment that is used to create all the special features and menus on HD DVD discs. HDi is based on XML, HTML, and CSS, as they are widely known web standards that are easy to learn. BDj is the programming language used for Blu-ray discs, which uses Java programming. Java is a more complex language and incurs a greater cost to companies that need to hire a more experienced programmer.
Even though Blu-ray has "won" the high definition format war, many companies aren't too high on the expected outlook for the format. Consumers on the whole seem fine with DVD and see no reason to upgrade. One of my friends even came over a few months ago saying they got a HD DVD player for Christmas. When I inquired about which one, I found out it wasn't an HD DVD player at all, but an upconverting DVD player that doesn't play the new discs. I have seen many other stories posted online that convey similar situations. This just shows that consumers are still clueless about the differences between SD and HD. Many consumers don't yet have an HDTV and many of the ones that do don't realize that a regular DVD will not play in HD just because you have an HDTV.
Check back next week to find out about the decline of HD DVD, and what we can expect in the future…
Editor's Note: Click here to read Part 2 of this story.
Resources:
High-Def FAQ: Blu-ray Profiles Explained
Blu-ray vs HD DVD replication costs analyzed
Why HD DVD is more technically advanced than Blu-ray
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