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Consumer electronics industry

Warner Bros Backs Blu-ray Over Rival Format

Strategic Insights

— 1 min read

The film industry's preference for one digital format has taken a decisive turn with Warner Bros' decision to distribute all its films in Sony's Blu-ray format, throwing the competition between the next generation of DVD formats into turmoil. This move deals a significant blow to Toshiba's rival HD DVD technology, which has struggled to gain traction in the market. The format war, reminiscent of the Betamax and VHS battle in the 1980s, has left consumers confused, with neither technology working on older players.

Key Takeaways:

  • Warner Bros has announced it will distribute all its films in Sony's Blu-ray format, a major blow to Toshiba's HD DVD technology.
  • The decision was made hours before the start of the Consumer Electronics Show in Las Vegas, a significant event for the technology industry.
  • Customers have shown a preference for Blu-ray over HD DVD, with sales of Blu-ray discs in the US generating $169 million last year, compared to $103 million for HD DVD discs.
  • Warner Bros will continue to release new titles in HD DVD until May, but its decision marks a significant shift towards Blu-ray.
  • Other major studios, including Walt Disney, Sony Pictures, and News Corp's Twentieth Century Fox have also adopted Blu-ray.
  • However, Viacom's Paramount Pictures and Universal Pictures will continue to distribute films exclusively in HD DVD format.
  • Computer games manufacturers Vivendi and Electronic Arts have opted to use the Blu-ray technology.
  • The decision highlights the importance of a single, unified format for the film industry, with Warner Bros' chairman and chief executive Barry Meyer stating that format confusion is a major obstacle to mass-market success.

Statistics:

  • Sales of Blu-ray discs in the US generated $169 million last year.
  • Sales of HD DVD discs in the US generated $103 million last year.
  • The $20 billion (Pounds 10.1 billion) computer games industry is a significant backer of Blu-ray technology.
  • Warner Bros' decision marks a significant shift towards Blu-ray, with the company opting to exclusively distribute its films in the format.
  • The Consumer Electronics Show in Las Vegas is a significant event for the technology industry, with major players in the sector attending.

Sources:

  • The Times, 2008

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