A dual layer HD DVD can store 30 GB of data
A dual layer Blu-ray Disc can store 50 GB, almost six times the capacity of a double-dual layer DVD (or more than 10 times if single-layer).
Sony and Pioneer promoted the Blu-ray DVD format
Toshiba promoted a competing standard: HD DVD
Consumers were reluctant to purchase either for two reasons:
1. Both the players and the DVDs were more expensive
2. They didn’t know who was going to win the format wars
Historical antecedents: 8 tracks (cassettes won), Beta-Max (videos won)
Format war was decided by:
1. Shifting business alliances
2. Sony’s decision to include Blu-ray player in Playstation 3
There were major movie studios on both sides committed to releasing their movies ONLY in Blu-ray format or ONLY in HD DVD format
Tipping point came in January 2008, when Warner Bros., who had the largest market share of DVDs, announced that they would only support Blu-ray. This caused a chain reaction amongst DVD distributors. In February 2008, Wal-mart decided to phases out HD DVD completely. Netflix also shelved its HD DVDs.
Sony’s decision to include a Blu-ray player in the Playstation 3 also helped Blu-ray win the format war.
By 2008, Sony had sold 10.5 million Playstation 3s, but only 1 million HD DVDs had been sold.
Because there were more Blu-Ray players, there were more Blu-Ray discs sold. Blu-Ray outsold HD DVD 2 to 1 in the U.S. and almost 4 to 1 in Europe
Risky strategy on the part of Sony, who sold PS3 at a loss of $200 per console, creating a total loss of about $3 billion.
But Blu-ray won the format war.
On February 19, 2008, Toshiba announced it would cease developing, manufacturing and marketing HD DVD players and recorders.
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