Chapter 2 Media Article
"Next-gen DVD war could be messy--or not"
http://news.zdnet.com/2100-1040_22-6106111.html
This article is about the competition between HD DVD and Blu-ray. There was an annual DisplaySearch HDTV: The Future of Television conference taken place which included analysts, HD DVD and Blu-ray manufacturers, retailers, studio executives, and software makers. The Blu-ray format, which can have up to 7 hours of video content onto a single-layer disc, has the support of 7 movie studios, 11 consumer electronics companies, four IT companies and leader in the gaming and music industries. A single-layer HD DVD has four hours of playback, which is double the capacity of a standard DVD. The format has support from 5 movie studios. Both sides agree that consumers will want HD content that will make the investment worthwhile because HD TVs have become more popular. The DVD market has been declining and experts believe that a technology transition is ready. Sonic Solutions’ Taylor believes the transition will be smoother since consumers are already familiar with what DVDs can do. Switching to either two will be an easier process. But both groups seem to agree that consumers will choose content over format. They will choose titles over the technology. Tsuyuzaki of Panasonic says, “I have no doubt (the next-generation format) will take off,” “the question really is can we create a healthy market and quickly.”
Relation to Chapter 2 - Elasticity of demand
How does this article relate to chapter 2? Chapter 2 is about the market, demand, supply, elasticity. Everyone has DVDs and DVD players at home. We have been using them for many years. The only format we ever buy now is DVD. DVDs are necessities but it I believe it is an inelastic demand. When the price changes, there doesn’t seem to be much affect on the demand. Most people think DVDs are still expensive as they don’t think they’re worth 25-30 dollars, but some people are still willing to buy it. There are not really any substitutes as downloading them is illegal, TV is different, and the theaters are also different. The DVD market is not doing that good. HD DVD and Blu-ray will be coming into competition. I don’t think the demand for the two new formats will be successful. The next-generation formats have not come out yet but I have predictions. These are luxuries and they have an elastic demand. The price will affect the demand. The prices for these new formats are more expensive than DVDs. DVDs are a better substitute and I think people are still comfortable with that format. Most people who choose what to buy, only care about content or the movie. Most people don’t care if the picture quality is much better and they don’t care much for special features. The new formats can do a lot but most people find it unnecessary. Overall, the new formats will take time to be success or not. For now, we can’t be sure but I wouldn’t buy these unless the price decreases.
http://news.zdnet.com/2100-1040_22-6106111.html
This article is about the competition between HD DVD and Blu-ray. There was an annual DisplaySearch HDTV: The Future of Television conference taken place which included analysts, HD DVD and Blu-ray manufacturers, retailers, studio executives, and software makers. The Blu-ray format, which can have up to 7 hours of video content onto a single-layer disc, has the support of 7 movie studios, 11 consumer electronics companies, four IT companies and leader in the gaming and music industries. A single-layer HD DVD has four hours of playback, which is double the capacity of a standard DVD. The format has support from 5 movie studios. Both sides agree that consumers will want HD content that will make the investment worthwhile because HD TVs have become more popular. The DVD market has been declining and experts believe that a technology transition is ready. Sonic Solutions’ Taylor believes the transition will be smoother since consumers are already familiar with what DVDs can do. Switching to either two will be an easier process. But both groups seem to agree that consumers will choose content over format. They will choose titles over the technology. Tsuyuzaki of Panasonic says, “I have no doubt (the next-generation format) will take off,” “the question really is can we create a healthy market and quickly.”
Relation to Chapter 2 - Elasticity of demand
How does this article relate to chapter 2? Chapter 2 is about the market, demand, supply, elasticity. Everyone has DVDs and DVD players at home. We have been using them for many years. The only format we ever buy now is DVD. DVDs are necessities but it I believe it is an inelastic demand. When the price changes, there doesn’t seem to be much affect on the demand. Most people think DVDs are still expensive as they don’t think they’re worth 25-30 dollars, but some people are still willing to buy it. There are not really any substitutes as downloading them is illegal, TV is different, and the theaters are also different. The DVD market is not doing that good. HD DVD and Blu-ray will be coming into competition. I don’t think the demand for the two new formats will be successful. The next-generation formats have not come out yet but I have predictions. These are luxuries and they have an elastic demand. The price will affect the demand. The prices for these new formats are more expensive than DVDs. DVDs are a better substitute and I think people are still comfortable with that format. Most people who choose what to buy, only care about content or the movie. Most people don’t care if the picture quality is much better and they don’t care much for special features. The new formats can do a lot but most people find it unnecessary. Overall, the new formats will take time to be success or not. For now, we can’t be sure but I wouldn’t buy these unless the price decreases.
posted by MarcoLeung at 7:57 AM
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