Paul Erickson, an analyst with market research firm DisplaySearch, has warned that Blu-ray will face a number of challenges if it is to become the format of choice for consumers.
They're not particularly surprising ones either — competition from a solid DVD market and cheap upscaling DVD players, and the increasing popularity of downloads and high definition offerings from cable companies.
"A market filled with inexpensive sub-$100 upscale DVD players aren't going away soon. They still make a lot of money for consumer electronics companies. An unpalatable alternative is to get aggressive on pricing structures," he said.
Blu-ray may have fought off HD DVD, but the battle ahead could be a lot tougher. It's also worth bearing in mind that consumers don't always buy in to the highest quality format. The mainstream consumer tends to go for what's convenient, what's most attractively priced, and what their friends and colleagues already own.
The absolute visual and audio quality of HD digital downloads, cable broadcasts, and upscaled standard definition DVDs can't yet compete with that of Blu-ray discs, but ultimately that may not matter.
"The real winners now are the studios," suggests ABI Research principal analyst Steve Wilson.
(Via Financial Post
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