What factors do you think influenced whether (1) consumers, (2) retailers or (3) movie producers supported Blu-ray versus HD-DVD?
1) The consumers can be divided into two groups: Early adopters and the majority. In this case, early adopters tend to follow technology. But for majority, the size of the installation base on format is the most important thing. Consumers who are affected by the Blu-ray technology is based on the brand loyalty. They prefer to SONY brand. In addition, consumers don't want to make a decision when the standard were set. Dominant design had less to do with technology. Everything had to do with content. 2) Retailers don't want extra inventory about these two products. In addition, two different format will affect the cost of the product (selling the same quantity, will need to balance two different formats). Sony was buying up content (in this case movies) and had enough control to drive decisions. 3) Movie producers would follow consumer and retailers' decision as they want to let consumer accept the movie in a better way. In the aspect of technology, Blu-ray greatly improves capacity of memory for optical storage products, hence Blu-ray provides a leaping development. For film producers this is undoubtedly great benefits.
Why do you think Toshiba and Sony would not cooperate to produce a common standard?
We believe they are both giant companies and intend to get more profits out for themselves where else they would have to share the profits if they are together. They also believed in themselves enough to win the market on their marketing strategies. Both the companies thought that they had the dominant design and wanted to conquer more market share in order to defeat the rival. They will not make concessions. In the other hand, more and more movie producers and consumers use Blu-ray instead of HD-DVD.
If HD-DVD had not pulled out of the...
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