Commentary
Guest

Guest columnist for Video Business.


One is better than two


AUG. 18 | Steve Devick (Guest Column, VB, 8-7) is wrong when he says that co-existing game systems prove that two different high-definition DVD formats can co-exist.

Let’s get this straight: If the consumer wrote the book, there would only be one game system and every game created would work on it. And this would have been a great thing for the game business. How many PlayStation 2 owners would love to have the newest Zelda or Metroid game but don’t want a Nintendo system? Those dollars are left on the table.

The most successful mass market launches were CDs and DVDs, not just because they represented a huge leap in quality over their predecessors, but because they were one format, one choice, all unimpeded by consumer uncertainty and promoted by a unified industry. And it worked because the consumer could adopt the new format with confidence, unconcerned that picking the wrong horse in the format war would leave them with a closet full of Betas or Dreamcast games.

Competing systems were never good for the video business. The Beta vs. VHS war actually slowed the growth of the video market. It wasn’t until the VHS victory was evident that home video truly caught fire.

DVDs and CDs represented a huge increase in quality over VHS and LPs. The difference between high-def and standard DVD is less dramatic, so we, the people, can wait as long as we need to for a winner to emerge. And until that happens, my DVDs look and sound just fine in my home theater.

If you think new high-def formats are assured mass acceptance simply because they are better, consider what happened to the lowly CD. All forward momentum to introduce the next generation was lost in a format war between SA-CD, HD-CD, the SA-CD hybrid and DVD-Audio that confused consumers straight into cyberspace. There is your object lesson.

Some don’t remember, but there was a format war in the beginning with DVD too, but it was wisely settled and a single format agreed upon before they went to market. It is a great format and will be with us a long time … unless these fools kill it too.

When consumers are confused into inaction, not only will they not adopt a new format, they will stop buying the existing one since it is obviously on the way out. And with studios signing new download-to-burn deals every day, we in packaged media should be bending over backwards to make our offerings more attractive, not more confusing. A successful new high-def DVD format could ensure our survival and prosperity for years to come. A protracted format war could drag us all further down than we can imagine.

I can’t believe the wisest men in our business could not come together, use the DVD model as the template and divide the work, the credit and the spoils so that everybody wins. But no such luck … the gladiators are fighting and there will be blood and scorched earth. And the last one standing might even be able to mumble “I won” before he too falls over dead. Show’s over. Let’s go home and download a movie.

Dan Crider is owner of video disc broker Volume Video, Carrollton, Texas

BACK TO TOP

Column Archive
Friday, October 13, 2006
The bigger picture View Archives »