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6. Those Who Ignore History…
For years we’ve heard about the evils of MP3 and illegal downloading. All the while the RIAA and music industry had two formats that could have prevented any illegal copying – at least for all but the most dedicated crackers: DVD-Audio and SACD. These formats proved to be higher quality than CD, presented much enhanced copy protection schemes and were easily used as alternative formats to CD. Yet both formats failed miserably to achieve any significant market penetration. Why? Without an artificial “shove” from the record industry – which never materialized – technology alone is never enough to push a new format into the hands of consumers. In terms of convenience and ease of use, DVD-Audio and SACD offered nothing to consumers. In fact, they made listening to music more complex, since most hardware was unable to correctly decode and provide adequate bass management for the new formats.
Could these formats have succeeded? Absolutely. If the recording industry had presented a plan to phase out CDs and the “format war” had been avoided (simply by the industry picking one format over the other) we would all be using DVD-Audio players and illegal downloadable music would be mostly confined to analogue rips or older music. Is this a stretch? Perhaps, but only because history shows us that corporate greed causes most companies to miss the long term economical gains over a short term loss of licensing revenues.
7. People Want Technology that’s 15 Minutes Ahead of Its Time
For many people, getting into HDTV is all about the widescreen and being able to see their DVDs with more clarity than ever before. When Billy Bob comes home with his new high definition 720p display, the difference between that and his older SD TV is amazing – at least when he’s watching DVDs. You see, that’s the problem – and it’s two-fold. While most consumers are still getting into the HDTV craze, they’re already impressed. And the difference between SD TV and HDTV is more amazing than the difference between 480p DVDs and 1080i downrezzed high definition discs.
The other side of the coin is the lack of HD content available on TV – and this is a biggie. While Billy Bob is impressed by his DVD player, he is dumbfounded by his cable TV – which actually looks worse than it did on his old set (mostly because it’s bigger). You see, nobody told Billy Bob that he’d have to get an antenna or subscribe to HD service from his cable/satellite provider. He was also not told that most of his favorite shows (Billy likes sitcoms and the Sci-Fi Channel) aren’t yet available in HD, regardless of technology or service provider. As a result, many Americans are underwhelmed or feel like they got burned by HDTV. The last thing they’re going to do is rush out and buy the next greatest thing.
8. Enthusiasts Are Getting Tired (and Smarter)
While some home theater audio- and videophiles have the money and inclination to rush out and buy the latest and greatest toys as soon as they are available, many more are becoming more cautious. Burned by 8-track, laserdisc, SACD, and DVD-Audio (and possibly soon non-HDCP HDTV) – these war-weary consumers are going to think long and hard before jumping onto any new technological bandwagons. This leaves a shrunken market of even the bleeding-edge consumers, and that means even less sales to early-adopters.
9. A Skeptical News Media Doesn’t Help
I’ll admit it, we’re part of the “problem” (though I’d like to think we’re saving consumers from making the next big mistake). An increasingly skeptical news media isn’t buying into the hype of HD DVD and Blu-ray, especially not after wasting millions of editorial words on DVD-Audio and SACD, only to watch the software and technology dwindle into obscurity. Even after almost 6 years, most consumers continue to proffer puzzled looks when these audio formats are mentioned. The new DVD formats are getting plenty of press, mind you, but with the Toshiba flop and lack of software, the fact that the Emperor has no clothes (at least not yet) is hard to avoid.
10. Broadband and IPTV to Compete?
With Verizon, AOL, Time Warner and others jumping to provide HD on-demand services for the consumer it is a very likely event that high definition DVD will be something that isn’t relevant in a service-directed marketplace. Add to this Apple Computer’s recent push for video downloads and we may find that consumers are far more interested in quantity, portability, and ease of use over high quality source material. Even with respect to high definition formats, downloadable files burned to consumer-supplied media may make data high definition DVDs more significant than the retail formats. This consumer model is being readied for testing in South Carolina’s head-end for Time Warner Cable this year.
So, while I certainly hope for the best, that’s my story and I’m stickin’ to it. High definition is headed for a niche market at best, not an industry takeover.
By Clint DeBoer
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