Quote Originally Posted by Ajani
While I agree with the comments about increasing screen sizes and resolutions being the trend in video... keep in mind that all of these increases in sizes and res have come hand in hand with decreasing costs each year... 2 years ago a 52 inch lcd projection tv and most 32 inch LCDS were selling for around $2K, now they can be had for around $1k (the new models, not used ones!). The audio market has not been nearly as advanced in pushing higher quality products at lower prices (quite possibly because audio companies often use a 5 year shelf life for their products while TV models are upgraded every year OR the audio companies are just greedy and lazy).
But, you're making my point here. The trend on the video side is towards larger screen sizes and higher resolutions at more affordable price points. It further entrenches the home living room/media room as the primary viewing place for video content.

The audio side is all about mobility. The iPod sales alone more than TRIPLED the revenue for all home audio components COMBINED. The innovation there is in increasing the functionality and utility of downloaded and ripped audio content. And like I said, that's nothing more than a continuation of a trend towards mobility that's been ongoing in the audio industry for the better part of 50 years.

The video side sees no such move towards mobility. Yes, there are more portable devices that can play downloaded videos, but that capability does not drive sales, whereas larger screens and higher resolutions are driving sales.

Quote Originally Posted by Ajani
That is possible, since blu-ray has already been around for a few years and if it fails to supplant standard dvds, then its shelf life may be even shorter...
What calendar are you reading? The first Blu-ray players came out less than 2 years ago. And the format war is only now getting sorted out, so the big market push for Blu-ray hasn't even begun yet. But, even so, it's still much further along than any of the downloading plans out there.

Quote Originally Posted by Ajani
While I see the relevance of studio support and agree that the new video formats have far more studio support than the audio formats have, I think they KEY factor is the consumer and not the studios.... Blu-Ray/HD-DVD are still luxury products (since dvd is still much cheaper).... Studios can push an expensive format all they want, but it doesn't mean anything unless the customers are willing to purchase it....
Of course the key factor is the consumer, but without studio support, the consumers are a nonfactor.

As for Blu-ray/HD-DVD being luxury products, what's your criteria? HD-DVD players are readily available for under $200, and Blu-ray players are already below $300. When the DVD players began outselling VCRs, DVD players still cost more than $200. Were DVD players still "luxury products" when they outsold VHS?

Quote Originally Posted by Ajani
I agree wholeheartedly with the point about players dropping below $200 increasing sales... but keep in mind that consumers (not all, but a very significant portion) like lower prices... so as I've said before... when HD format sell for the price of regular dvd products then they can easily take over the dvd market (as long as they accomplish that before downloads take off).
Of course, consumers like lower prices, but keep in mind that Blu-ray/HD-DVD price declines have already occurred at far sharper rates than when the DVD format was introduced. But, for Blu-ray to supplant the DVD format does not require that Blu-ray players to price match what DVD players cost.

If consumers perceive greater value in Blu-ray's higher resolution and enhanced features, then they will pay for it. After all, the DVD format took over from VHS when VCRs were selling for less than $100 or about half of what DVD players cost. The DVD format took over because consumers saw the extra value that the DVD format represented, and willingly paid for it.