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AP article on HD v. Blu

Posted by Duilawyer (A) on August 12, 2007 at 19:51:43

Consumers urged to pick new DVD format By GARY GENTILE, AP Business Writer
Sat Aug 11, 12:23 AM ET



LOS ANGELES - People who own an HD DVD player can forget about watching "Spider-Man 3" in high definition when it goes on sale during the holiday season. The movie from Sony Pictures will only be available in the Blu-ray DVD format. Likewise, people with Blu-ray players won't be able to enjoy the action-thriller "The Bourne Ultimatum," which Universal Pictures will release only in HD DVD.

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These exclusive arrangements, plus aggressive price cuts for high-def DVD players, are designed to persuade consumers to finally embrace one format or the other.

But analysts wonder if the moves will anger consumers, just as the studios and consumer-electronics companies are hoping to boost high-def DVD sales as growth in standard DVDs stalls.

"The frustration for consumers is not knowing what format is going to win," said Chris Roden, an analyst at Parks Associates.

Consumers, many of whom are still smarting from the VCR format battle between VHS and Betamax, need to know their expensive equipment won't become obsolete if the competing format wins, said Steven J. Caldero, chief operating officer of Ken Crane's, specialty electronics chain in Southern California.

"People are still frustrated there is a format war to begin with," he said. "The studios are making people choose. What consumers want is something that will play everything so they don't have to choose."

Until recently, many consumers were able to defer the choice because players have been so expensive. But prices have been slashed by about half — Sony Corp.'s Blu-ray player now sells for $499 and Toshiba Corp.'s cheapest HD DVD player sells for $299, with both likely to include as many as five free movies as an incentive. (Players that read both formats remain expensive.)

Both sides are also releasing blockbuster titles such as the new "Pirates of the Caribbean" movie aimed squarely at the demographic most likely to upgrade to high-def.

The stakes couldn't be higher for Hollywood, which has seen sales of traditional DVDs, once a reliable profit engine, slow to a trickle. Direct digital delivery online, while promising, is still years away from profitability because current Internet capacity simply can't handle the enormous high-definition files.

Yet consumers remain profoundly confused

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