Toshiba, NEC Plan To Create Yet Another Optical Format

selderrr writes: "Dow Jones Newswires is reporting today that Toshiba and NEC are planning to propose a new optical disk format to the DVD Forum that will offer four times more storage capacity than current DVDs. In February, a consortium of nine companies, including Sony and Matsushita, announced a new format that would offer 50GB of data storage. While the Toshiba/NEC option is smaller at 40GB, it is cheaper to produce. The two disc formats will not be compatible." Related, coryboehne writes "The New York Times has a great report detailing the history of the DVD. According to the article digital videodiscs and their players have now surpassed the VHS in terms of sales for the first time (In 2001, $10.3 billion was spent on movies, 52% of this on DVD's, now compare this to 2002, $12.4 billion total revenue with 65%, going for DVD's) . Funny considering that DVD's are only in about a third of American homes (about 30 million households, and consider that a quarter of these homes have more than one player), compare that to the unbelievable amount of VHS players (about 90% of homes in the USA have a VHS player) and it quickly shows just how popular the DVD has become."

Comments

Different marketing strategies

[odie_q]

Like many others, I own both a DVD player and a VHS recorder/player. While I occasionally buy films in the VHS format (even less frequently now that I have my DVD player), I bought my VHS player primarily for watching rental films and for recording stuff on TV. DVD, on the other hand, has been heavily marketed as a player of purchased films, and although I now rent films in the DVD format, I bought my DVD player primarily to watch purchased DVD films.

The DVD may have better image quality, and room for more hi-fi audio channels (stereo sound quality on the VHS is excellent, though), but the main reason I prefer DVD is media durabilty. Every time I watch one of my VHS films, it wears down. Image and sound quality deteriorate over time and with use. I'm reluctant to let people borrow my favourite VHS films. With DVD i have no such hesitations.

I think this accounts for a lot of the difference in sales. The VHS is marketed as a recorder, the DVD is marketed (at least in Sweden) as the hub of your home cinema. While all newer films are available on rental DVD, purchasable DVD's are much more visibly available than their VHS counterparts.

Excellent marketing by the filmmakers. They recognised that the change of technology generations gave them a chance to push for a change in consumer patterns.

It would be nice if they see the advent of Internet media distribution as an opportunity as well, and not a threat.