While the European Commission investigates possible anticompetitive practices by supporters of the Blu-ray DVD format, the HD DVD camp is trumpeting both a permanent price cut on the latest players and new and improved features. Toshiba is releasing a new update in September that will allow a 24p mode on its HD-XA2 and HD-A20 HD DVD players. The change will usher in presentations that more closely resemble a multiplex experience -- if you have a 24p-capable television.
Last week, Toshiba announced that it would make the $299 price point permanent for its entry-level HD DVD player. The company reported that sales spiked when it introduced the lower price points in May during a "limited time offer" promotion. That makes the HD-A2 player $299 and the HD-A20 is $399.
The price of the HD-XA2, the top-of-the-line model, is unchanged at $799. Toshiba might benefit from a deal Amazon and Microsoft struck on Monday with the "1,000 HD DVD Indies Project," which the industry giants developed to reduce the barriers to entry for filmmakers producing and distributing movies on HD DVD. Jointly sponsored by Amazon and Microsoft, the project will provide free authoring and setup services for up to 1,000 selected indie titles.
In addition to the permanent price cuts for the new HD DVD players, Toshiba also announced new Web-ready features for HD DVD, which could boost additional sales of titles offered in that format. Consumers will be able to download firmware the company released to support Web-based content and interactive applications embedded in movies that support HD DVD. Analysts expect more films to be produced with these bonus features in the future.
What the market is seeing is an escalation of the format war between the Blu-ray camp and the HD DVD camp. While most of the Hollywood studios support the Blu-ray standard, and many already have proclaimed Blu-ray as the winner, analysts said there is still a long battle ahead. Just as there are various options for portable storage, there might continue to be various options for next-generation DVDs.
According to Richard Doherty, principal analyst at Envisioneering Group, it's possible that the market won't see a clear winner in the Blu-ray versus HD DVD format war. After all, he noted, Betamax didn't suddenly die. It wound down over several years and, in a sense, is still alive because Betamax tapes still trade on eBay.
Consumers wouldn't be buying the old tapes if there were no means to play them. "As long as there are unique titles in one format there will be a following," Doherty said. "You cannot get a Universal film in anything but HD DVD.
So unless Universal offers support for Blu-ray as Paramount and Warner have, this could continue for some time and confuse consumers for some time." But that consumer confusion is hindering the adoption of the next-gen DVDs. Consumers are behaving cautiously with their credit card purchases, Doherty said, and they don't want to be embarrassed against their neighbors or spouses for betting on the wrong high-definition horse.
While the European Commission investigates possible anticompetitive practices by supporters of the Blu-ray DVD format, the HD DVD camp is trumpeting both a permanent price cut on the latest players and new and improved features.
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