Skip to main content

Evolution of Home Video Media Formats


According to Kegan Research, with the home video business fixated on a war between two incompatible next-generation systems, it is interesting to note there are actually four video formats active these days. And a shakeout looms.

In April, 2006, only one film will go out on VHS (an independent foreign picture) versus 24 two years ago. VHS is the 30-year-old cartridge tape format sinking into oblivion as a platform for pre-recorded software titles.

Today, the market is dominated by the standard definition DVD (S-DVD). But now two incompatible next-generation high-definition formats are about to launch: HD-DVD (championed by Toshiba) is scheduled to ship its first players in the U.S. later this month and Blu-ray (led by Sony) in late June. It�s not clear if both will survive, but shortly four formats will be active.

The overall home video market suddenly plateaued in 2005 and DVD sell-through revenue (excluding rental) grew approximately 6 percent to $16 billion, ending explosive growth (DVD sell-through grew 34 percent in 2004) since S-DVD's U.S. introduction in 1997. Video hardware and software marketers hope HD will spark resurgence.

Popular posts from this blog

Bold Broadband Policy: Yes We Can, America

Try to imagine this scenario, that General Motors and Ford were given exclusive franchises to build America's interstate highway system, and also all the highways that connect local communities. Now imagine that, based upon a financial crisis, these troubled companies decided to convert all "their" local arteries into toll-roads -- they then use incremental toll fees to severely limit all travel to and from small businesses. Why? This handicapping process reduced the need to invest in building better new roads, or repairing the dilapidated ones. But, wouldn't that short-sighted decision have a detrimental impact on the overall national economy? It's a moot point -- pure fantasy -- you say. The U.S. political leadership would never knowingly risk the nation's social and economic future on the financial viability of a restrictive duopoly. Or, would they? The 21st century Global Networked Economy travels across essential broadband infrastructure. The forced intro...
Read more