Re: Article: High-definition DVD market facing static
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Originally Posted by FrancisP
There is a real possibility that the upgrade bug may never hit and all you have is a niche market. The weakness in the model is that consumers will be required to purchase something they already have. I bought The Searchers over the summer and I'm expected to buy a high def copy a few months later? There are plenty of SD discs that I have on my list. They may not be as big a leap over videotape as HD ism but it is still a huge leap.
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Four major problems with this line of thinking.
1. There is no requirement to upgrade DVD's. That SD disc you have today will play just fine in an HD Player tomorrow. Unlike DVD, HD discs do not invalidate a person's entire collection. As such, for those who do not wish to repurchase, they can enjoy the discs they have without issue as they would with an SD player.
2. If the above quote was true throughout the market, then Double & Triple dips wouldn't be economically feasible. If people weren't willing to pay for new or better versions of their movies, then there'd be no market, and no double and triple dips. If the above is true, then multi-dips must be money losers. Since studios don't like losing money, and they do like multi-dips, then the above quote cannot be true.
3. Nearly the entire U.S. market, at least, will be HD in a few years. HDTV's will not be a niche product. As DVD players get replaced, it'll be HD Players that take their places, and the market will be invisibly migrated. Especially after the market actually gets exposed to 720p and higher broadcast material, when DVD will start looking weak in comparision.
4. Most people don't buy every release. They buy the movies they like, and the movies they'd really like to see but didn't get a chance to go to a theater. Most people don't have hundreds or thousands of discs. Replacing a dozen or two favorites is no major issue for them, that's what a favorite movie is, something enjoyed so much that they *want* to own it in the best manner possible. Heck, the rental/netflicks crowd doesn't even buy them, they rent them, and they don't worry about rebuying. They're not out there saying "Dang it! Another new format! Now I have to go and rerent Star Wars all over again in a new format!"
HD will not be a niche market. The market will migrate, invisibly this time, without any major need for a marketing push. Just release the Players and the Media and let the inevetible slowly take place. HDTV's will lead to HD Players as people get exposed to HD broadcast and suddenly find that those SD DVD's no longer look as nice as they once did.