Friday, December 4, 2009

Format Standard Battle: High Def DVD's

In my Industry Analysis class, we talk about technology standard battles, and the incentives that firms have to seek proprietary formats or standards as opposed to cooperation on the format or standard technology. A recent example of this is the high definition DVD battle that took place with Sony's Blu-Ray and Toshiba's HD-DVD format standard battle.

In February 2008, Toshiba exited the format battle, after a number of retailers choose to align with Sony's high def DVD format. Given the changes in the market favoring Sony's Blu-Ray format, it looks as if Sony will be the dominant firm in the high definition DVD market, but that does not mean that Sony will be insulated from competition. As mentioned at the end of this interview, downloading high definition DVD quality movies is becoming a competitor to Sony.

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