I'd like to thank both Sony and Toshiba for putting the consumer between a rock and a hard place. Once again...
Apparently Sony has completely forgotten what kind of back lash they received during the VHS/Beta format wars. Why they chose not to work with others in their industry to sort it out before hand is beyond me. Yah I know its about money and gobbling up market share with proprietary technology but what happened to companies thinking about the consumer first and innovating around that?
Ok, I know that's a philosophical question, in my head I know why, but it still rubs me the wrong way.
I've had a chance to use both the new players and thought I'd share a few thoughts, I'll try not to seem biased but I'll confess Sony=evil empire in my opinion.
Samsung is the first (at this time) manufacturer to release a Blu-ray player. Toshiba is the HD DVD offering. While the Blu-ray device certainly looks slick, the controller is a farce. Oh, by the way it costs $1000.00. Toshiba's HD DVD player is a beast, I mean its huge when compared to the Blu ray device looks ugly, again the controller is terrible but costs $500.00. Yup, HD DVD is half the price of Blu-ray.
I won't go into a lot of detail to why that is, suffice it to say, the blu-ray technology required new tooling so the consumer flips the bill. HD DVD uses the same coating technology as DVD so their production costs are much less.
Looks: Advantage Blu-ray
Price: Advantage HD DVD
What any consumer is going to ask themselves is... Why do I need these new players? What will it do better than my $150.00 DVD player? Both camps will say... Hi-Def picture quality. That statement is both true and false, I'll explain.
Blu-ray (currently) is using the older MPEG 2 formatting, while HD DVD, thanks to Microsoft is using the more advanced VC 1 formatting. Basically this translates into much better picture quality with HD DVD vs. Blu-ray. Which is THE reason any sane person would spend 500+ dollars (not to mention re-buy the movies which are about $10 more than DVD).
Sony and company have said the issue will eventually be corrected, um ok, so how does that help consumers now? I'll say this, when I watched a few movies on the Blu-ray, there were certain instances where the picture quality was worse than DVD. That's a tough pill to swallow if I just dumped 1k on a hi-def player.
Performance: Advantage HD DVD
At the moment Blu-ray seems to have more backers in Hollywood, but with launch delays, high cost players, production issues with the new layer/coating technology I suspect that will change. Oddly enough, the difference in content offerings could still push someone into the more expensive, under-performing Blu-ray player.
Content: Advantage Blu-ray (This is a very subjective rating as certain movies announced for HD DVD might swing "on the fence" consumers. LOTR trilogy, Matrix and such have announced for HD DVD, etc. This is a moving target though.)
Storage capacity is really THE ONLY selling point for Blu-ray as their discs can hold about 20gigs more data. When I see that I'm like, so what, 30gigs is more than enough right now. I know I'm letting my bias show here but an extra $500.00 for 20gigs more disc storage? No thanks.
Disc Storage capacity: Advantage Blu-ray
Blu-ray may have more advantages on paper, but HD DVD has the advantages that actually count. Price/Performance. If I sound bitter, I am. I really hate the thought of having to make this choice and I know it's not going to stop at movie/player choices. Soon we will have to make hand held camcorder choices too. It's a path we've been down before and no matter what happens the end result is going to be a certain customer base left twisting in the wind.
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3 comments:
Well Jonathan:
Having spent five of last six years in the hollywood high horse chair, I will say that the one major point that the score is 0-0 on is the only one that truly should be a consideration by studios, hardware manufacturers, reproduction houses, retailers and third party interactive content providers, Hi Def DVD authouring and production facilities and authoring software providers such as Interactual and it's parent Roxio; is that almighty thing called The Consumer Experience.
They all have missed out on this minor technicality. But guess what, there is a god, and it is the consumer themselves. They have placed their vote loud and clear so far and funny thing there isn't two camps, only one as far as I can see: they vote no to both factions! Vote no to holding the bag for hardware inflated costs, voted no to the movie title shell game, and just can't say yes to other parts.
The cost of entry into this world called Hi Def isn't cheap and it sure isn't common man middle america friendly. After The new tv, you will want new hd programming (cable or satellite), most likely will want a new sound system to go with the new tv and then there is the content; what will be the cost: oh that is a loaded question: new release or catalog; or what about deep catalog titles? And has the consortium settled on one price, the studio's that is, if so, it will be one of the only things they can agree on other than not paying the writers any royalties for the DVD revenue which is steep; at least it used to be before this years market adjustment.
And the beat goes on; what about all that cool stuff that the new players are going to enable us the consumers to do; the whole interactive sales pitch; which still isn't very clear in hollywood minds let alone the consumers mind. And why is it the cable companies are just quitely tip toeing to bed every night knowing that they have had no capital outlay and they may stand to be the big winner, because all of the interactive stuff most likely will be internet based, housed on closed servers requiring the code to be allowed access. No such thing as an all access pass for the HD World.
And i just can't help myself; what about the experience? Looking back at history which will not prevail in this case; the enhancement to the home movie expereince from vhs to dvd was monumental with very low barriers to entry (this happened within a record time frame.) Matter of fact, the DVD was the fastest adopted new technology in the history of consumer electronics; so naturally the software became the fast eroding margin in the history of entertainment software also. Too Bad Too Sad; the studios missed out on hundreds of millions of dollars because of that other evil empire; Wally World out of Bentonville. They did their share to commoditize the category and the Father of DVD did whatever he could do to push the bucket over to spill into VOD sooner than the consumer was ready to embrace it; they seem to still be waiting; not a good sign for Blu or HD for that matter. I find this a very intriguing subject matter. It reminds me of the first Shrek movie by JK of SKG Dreamworks. So much layered insider information that you will have to see it twice to catch all the BBQ'ing that is going on.
Well Jonathan: You really got me on fire with this topic; what's next religion or politics
You are a brave man to start this thread. I suspect you don't plan to spend =anytime in H-Wood for some time.
Wow, that is the most thought-out, competent, and relevant reply to a blog post I have ever seen. Well done.
Mystery stranger, any other opinions you would like to express? It is obvious that you speak from a point of obvious expertise, and personally, I find your comments to be spot-on. I too have always wondered what the "killer app" is behind HD-DVD or BR. Without one, can you say DVD-Audio (or SACD)? Ultimately, I think the consumers will choose content, not quality/function. If Toshiba can get their side in gear and flood the consumer with content, the "war" will be over before it begins, especially considering the pooch-screw that is the introduction of Blu-Ray and PS3.
Anyway, anonymous stranger, we would be honored if you would share more of your insights with us. You have a home here, and we are all ears. : )
Cobalt Cable
http://www.cobaltcable.com
Jonathan:
Here is a cleaned up version of my second posting. Way too long and well; you make the call if and Where/How you want to edit. You have my full authority to do so.
Reply from Mr. Anonymous:
I felt compelled to correct a specific company reference I made in the previous posting I made. It is regarding my comments and references to Roxio. The correction should state that the authoring company is Roxio/Sonic. Sonic being the parent company and the true driver behind the Hi Def authoring suite software. No real issues there, Sonic and the two divisions I have direct and indirect experience with Roxio and InterActual are doing some great things and will most likely continue to do so.
For example, InterActual is working hard to get a critical mass of consumers to realize the benefits of the interactive aspects available with their “Interactive DVD Solutions” in the Interactive Player 2.0. It is good stuff and you should take it out for a test drive if you have not yet done so already! If you take my advice and sign up for the free DVD Player, Interactive 2.0, when asked tell them "Coblag" referred you to them. Great things may happen; you will never know unless you try?
Now moving forward, the question at hand is what are the virtues of the " Little–Boy–Blu—Ray” That just sounds like a loaded statement; do you think so? No not the author, the statement. Tough crowd you attract here Jonathan.
It is all relative; relative to what side of the laser beam you are positioned, Blu vs. HD and what side of the manufacturing equation you are on: the supplier or the consumer. It reminds me of the tactical (Tactical Ops) flashlight that puts out 2000 lumens of light by “Sunfire”. It is called the Beast, for good reason, it has a price tag of $4,000.00+. Here is the analogy: if you are on the receiving end of those 2000 lumens, the results are instant temporary blindness. If you are delivering the 2000 lumens, the result is instant opportunity to escape behind the temporary blindness.
In the case of our story, the escape comes behind the smoke and mirrors. Why so, because those consumers we call early adopters and even before that, the trend setters, are not to be blamed if they happened to get caught up in all the pre–game hype and are professing one format’s virtues over the other. My sympathetic nod is because there is so much smoke, and enough false reflections due to the mirrors that anyone is susceptible to blurred vision and the bewildered feeling of being in a carnival funhouse. Oddly enough the consumer wasn’t the primary or secondary target of this propaganda, it was a game to call out the Industry fence sitters and make them pick a camp and get in line: HD or Blu Ray. Buena Vista broke rank first and then the Fox outsmarted the mouse by not formally declaring, but rather becoming steering committee members in both camps. That is one shrewd Fox.
Universal felt they had the world …by the short ones by declaring themselves as the swing vote. They wanted some of the money that Buena Vista hooked into, but something strange happened on the way to the Bank? The swing vote became the blast that was heard around the retail world. Now Universal is left holding the bag when retailers came looking for someone to hold accountable. Those where just a few of the first half highlights.
Flashing forward to today, give or take a month or two either way, I have to say the shrewd one is the consumer! They know the words to Manfred Man’s Earth Band hit single: Blinded By The Light and Homey The Clown Don’t Play that game.
O.K. where were we before the detail deep dive took place? Oh yes the $4000.00 flashlight; and no that is not a typo; check it out for yourself; go to Cases4less website and browse the Sunfire brand assortment. The “Beast” is there as I am writing this Blovel: a cross between a Blog and a Novel.
More than enough bags to go around; now, the consumer gets to carry one; Sony’s R&D costs associated to creating the Blu-Ray. This is inevitable, because the sheer coincidence that the same Blu–Ray in the High Definition DVD player is the cornerstone for the PS3 Video game Consoul; Sony’s next version of Play Station. So the sooner the R&D costs can be amortized, assigned, and dispersed; the sooner Sony can declare PS 3 a profitable product launch. In addition to the R&D costs needing to be buried, the hard costs for the HD players need to as well, before reaching critical mass of production.
From what I understand, costs are coming in north of $1000.00. Hard costs; no profit tied into that yet. To launch a Hi Def Blu–Ray DVD player, it will have to be retailed below cost, considerably, to be competitive. This is because of the need to get into the market as fast as possible because the competitive landscape is commanding it. Not the consumer as of yet.
OK, back to the Blu-Men Group;
The consumer will get a High Def DVD player for about 1/2 the cost to make it; because they will make their money in Sony software product they publish and sell for some years to come.
Well the gift giving does not stop there: Sony keeps giving themselves the gifts because as Blu is an exclusive Sony technology, they have the right to charge royalties to author the Blu Ray product. Moreover, yes, those royalties are part of the intricately intertwined P&L for Sony. Hence, every disk to be authored in Blu–Ray format, regardless of the studio or category of product it is in: creates a little gift back to Sony. Their PS2 Video Game model is structured in a similar fashion; that should not surprise anyone that they want to repeat that scenario. HUGE CASH COW FACTOR IN THIS EQUATION.
I should bring this “Blovel’ to an end, but first, I owe all of you that stuck it through this, to tell you that Blu-Ray will have more disk capacity to be devoted to that fuzzy area referred to as the enhanced interactive aspects of the High Def DVD Format. That is if, and when they get the technology perfected to manufacture it.
No matter what the consumer votes for regarding Hi Def DVD, “Lil Boy Blu-Ray” is here to stay. No matter what we say and even if, we decide not to play.
OK, now that is just wrong and has to stop. If not, you will make me pay…oops….
My closing thought: Have you figured out why I referred to Sony as the Blu Men Group? To me it smacks like this: There is this group, we will call them "The Man" and they have this thing we will call "Blu" and they have this great idea for me and you....
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