HD-DVD and the Early Adopter Premium
Hodejo1 writes "The early adopter premium is the difference between the cost of buying the latest greatest techno-toy today and the cost of buying an equal or better unit a couple of years later for much less. That Blu-ray unit you buy today for $300 will cost $80 two years from now. The premium is the $220 you pay to get the starter Blu-ray unit now as opposed to waiting. The same applied for HD-DVD until the axe finally fell and this is where it gets interesting. MP3 Newswire has been tracking post-mortem HD-DVD sales on eBay and surprisingly found that there are many takers. And why are people flocking to buy this decade's Betamax? Simple, they did the math. The demise of HD-DVD format creates "an option where the consumer can get his high-def player NOW without paying the $220 early adopter premium. That savings pays for the player and more. New sealed boxes of the Toshiba HD-A3, which shipped last fall for $300, are now drawing on average about $75 on eBay, where plummeting HD-DVD movie prices are averaging between $6 and $10. "Take a consumer with a 42" plasma set who needs to replace a broken standard definition DVD player. He can a) replace it with another standard definition DVD for about $60. b) He can buy a Blu-Ray player for between $300-$1000. c) He can buy an HD-DVD unit for under $80 and then buy ten $10 or sixteen $6 HD-DVD videos for a total of $180". What really drives this is Blu-ray's skimpy catalog, which will take a couple of years to pump up. Rather than blow the $220 on the early adopter premium just to have access to a limited number of movies the post mortem HD-DVD buyers can enjoy cheap Hi-Def players, cheap Hi-Def videos, and pay less. These users can shift to Blu-ray when players are less expensive and the catalog is robust. Actually, the early adopter premium is more like $320. With the win, Blu-ray manufacturers have raised prices."
aacs has been cracked, while BD+ hasn't so everything on 'hd-dvd' can be backed up to a computer, then sold on e-bay or whatever. you can even burn the backed up hd-dvd to a bd-r, if you're willing to pay $600 for a bd-writer...
https://www.gnu.org/philosophy/free-sw.html
Another difference from Betamax is that an HD-DVD player can play today's most popular format without trouble - the DVD. It can also act as an upscaling DVD player, so in fact you'll get better quality than a standard DVD player.
There was a Digg link where everyone laughed at play.com rebranding an HD-DVD player as an Upscaling DVD Player with HD Capabilities. I disagree with the laugh track - I think that's a clever step to take, and it's also completely true.
Cheers,
Ian
Article says BluRay manufacturers have raised prices. This is not true. The link tracks average sale price, no manufacturer's recommended price.
Yes, average sale price has gone up after Christmas sales ended.
Also, if BluRay's catalog is skimpy, what does that make the HD-DVD catalog, which is smaller?
It'd be great if the HD-DVD fans took a clue from Toshiba and stopped trying to push a dead format. They're not doing anyone any favors.
http://lkml.org/lkml/2005/8/20/95
The Toshibas are excellent upconverting players...I need another dvd for the basement HDTV, so I plan on picking up another rather than shelling out for a standard upconverting player.
Dave
While I think the HD players are an excellent cheap up-scaling DVD player, I question there value as a HD player. The catalog is tiny, and more importantly, there will be no new titles. So if I want the latest new release on a HD format, its blu-ray or nothin. I know, lots of people think up-scaled DVD's look just as good as HD, I just don't happen to be one of them. So, for me, I'll be picking up the high priced blu-ray media. I do think the war ended too soon. I was getting a lot of mileage out of the BOGO sales, which have vaporized as you could predict. Oh, and for those that will mention HD downloads, I'm already rolling on the floor with laughter.
Given the fact that HD-DVD titles are dirt cheap now, what about the prospect of buying up a lot of titles you want now and converting them to Blu-ray later? This is sort of like people converting VHS titles to DVD a few years ago, but without the problems of degraded quality.
512 MB RAM, 20 GB disk, 200 GB transfer, five datacenters. $19.95/month.
Another consideration is that by the time BD players come down in price in a year or two, they are likely to be multiformat players, integrating HD-DVD playback. The technology is already available (http://www.engadgethd.com/2007/09/05/lgs-bh200-hd-dvd-blu-ray-combo-player-set-for--october/), and since there will be a significant market comprised of people that don't want to repurchase their HD-DVD collection, it only makes sense that either this multi-format system will become standard, or be a very low cost option. So all these people taking advantage of cheap HD-DVD players/movies now can also take advantage of low priced Blu-Ray a couple years down the line with almost no down side.
Despite Samsung canceling its next gen combo player (http://blogs.pcworld.com/staffblog/archives/006597.html), I think that this is a near term decision - when the market picks up for current model combo players, there will be financial incentive to meet that demand with new products.
Oh, was that my outside voice?
Who pays $60 for a DVD player when you can get one for $30?
"When life gives you lemons, don't make lemonade. Make life take the lemons back!" -- Cave Johnson
...a linux box, xine and bittorrent.
I mean, HD-DVDs ? Physical disks ? Dust ? Uuuh.
Besides, frankly speaking, this early adopter rush probably has nothing to do with a taste for high quality and everything to do with a pissing contest with your neighbors.
\u262D = \u5350
The articles itself was interesting and looks spot on, however this embellished comment on the article is inaccurate. Amazon lists over 500 HD-DVD titles and over 700 Blu-Ray titles. It seems someone is grasping at anything to save face on a lost cause.
With a large volume of HD content available for the dead format and the player/movie prices heavily cut to move inventory it should be no surprise they are selling. Thats the point of the massive price cuts, to clear out the inventory of the dead format.
Is this bad news for Blu-Ray? Hardly, once the inventory for this dead format is depleted it will be a Blu-Ray market until a viable alternative is developed. I doubt we'll get any meaningful agreement between hardware manufacturers, software developers, content producers, and telecom providers that will enable a meaningful replacement for Blu-Ray any time soon.
Such a ridiculous premium is put on technology costs by the "first on my block" factor, and so much value is ignored by the "fear of obsolescence" that great economies can be had by doing the opposite - jumping on technologies as they start to age.
Everybody who buys computers knows there's a "sweet spot" in price/performance that's about in the middle of the pack. If 1TB drives are just available, and you can still get 80GB drives but no smaller (not new), the the lowest $/GB is going to be around the 500GB size.
Well, the sweet spot for consumer entertainment boxes has tended to be near the trailing edge for over a decade now, not the middle. Unlike computer parts, there's very little Moore's Law involved.
I got a DVD player when they hit $300, and watched about 20 movies on it by the time they'd dropped below $100. So those 20 movies cost me $5 each to rent, and $10 each to own the player that early; I bought too soon.
Better results came from buying a LaserDisc AFTER the DVD had been announced and LD's dropped like a stone. I got it for a couple of hundred, watched several dozen movies on it before they were being sold from the stores, bought 20 discs for $5 each, and am still watching them one-by-one (and it's barely less good than DVD). In addition, it's now a conversation piece, a historical curio.
People still buy technology with the wrong, wrong mindset that it is a capital asset, that it will last a long time like a house, or at least a good car. It's not. It won't last that long anymore; not just the gadget, the ENTIRE FORMAT. My tapes lasted 20 years, DVD came and went in about 10, Blu-Ray is widely expected to be obsoleted by (often downloaded) AVI files in less than 10.
So treat it as an operating-money decision instead. Figure out the number of movies you watch in a year - if you're out of the dating years, have a family, generally Have A Life, it's probably less than 30, may be under 20. Then figure a five-year lifespan for a format these days, and that's the number of discs you'll play: maybe 100-150. Paying $600 for a player is $4-$6 per disc. Add then rental, and are you sure you don't just want to go to the theatre?
Frankly I don't give a damn whether I can see some actors face in all it's blemished detail, what I do care about is the likes of Planet Earth, Galapagos and so forth in HD.
Fact is, picking up a firesale HD-DVD player + Planet Earth, Galapagos and so on in HD-DVD as well as a few films that do actually suit HD well such as 300 and Transformers I've been able to get the content I actually want to see in HD early. I'd never buy an HD player for the likes of the Bourne series, simply because I already think Matt Damon is an idiot and I don't particularly care about watching a high definition idiot in my room, I'm quite content with people like him remaining standard definition, and in not watching that sort of thing in HD I don't feel like I've lost out on anything whatsoever.
I guess to put it another way, some films you watch for the fantastic visuals, others you watch for the story. The story based films really don't make much difference whether they'd HD or standard def. but you'd never watch something like Planet Earth for the story, whilst it's interesting the main pull to it is the fantastic visuals that make you realise how amazing our planet actually is so I had a choice. Do I wait god knows how long for a Bluray player to come down to £50 - maybe 2years or more? or do I just buy an HD-DVD player addon for my 360 for £50 and enjoy the content I actually care about seeing in HD right now. To me it's really a no brainer, as has been mentioned previously on Slashdot, it's not as if the 360's HD-DVD drive can't be used on a computer to rip the content to disc and burn to a Bluray disc sometime down the road anyway when the prices for burning Bluray discs becomes reasonable.
Some people look at me funny when I say I bought an HD-DVD player and a few films, but I struggle to find myself as being the joke when I've paid £90 for the same player + content they're paying over £300 for. I'm still possibly going to buy Bluray down the line, I just aint going to pay anything over £100 for it. It's all too easy for some people to overlook common sense and logical action due to over the top brand loyalty. I understand there may be some people who do want to see their favourite actors in all their high definition glory rather than enjoy the storyline but I'm not one of those and plenty of others aren't - for those of us who only watch story based discs for the story then even 700mb XviD (i.e. not quite as good as DVD quality even) is plenty good enough.
If it so happens you want the following and your situation lacks all of the following then the price is already around what TFA quotes.
$133 for Blu-Ray
$133+External HDD for HTPC (Yellow Dog 6.0)
$133 for gaming console
I want to be retired when I grow up.
I also bought into HD-DVD (bought the $180 xbox 360 add-on drive when it first came out). That $180 got me the ability to watch movies in high-def, access to HD-DVD discs that were generally much cheaper than their blu-ray counterparts, and access to many great exclusives (like the Battlestar Galactica HD-DVD boxset) not available on blu-ray. And it's not like any of that stuff I've already bought is going to turn into a pumpkin now that HD-DVD is dead. It also gives me access to some great clearance deals on discs now. No regrets
I also bought a blu-ray player (PS3 after the first price drop for $500). Gives me access to blu-ray discs and exclusives, a good gaming system with potential, full hardware backwards compatibility for my PS2/PS1 games (it's the original 60GB American model). And it's easily upgradable. No regrets.
I'm sick of hearing about the "dangers" of early adoption. IMHO, it's almost always worth it (as long as you don't go crazy with the top-of-the line stuff). Early adoption can buy you years of fun ahead of everyone else and rarely becomes truly worthless even if your chosen format "loses."
SJW: Someone who has run out of real oppression, and has to fake it.
In its way, rather similar to what happened with the 3" floppy disc drive. For a while the two battled it out, then it became clear that 3.5" had won out, but then Alan Sugar made use of the fact that the price of 3" drives had dropped to practically nothing and put them in the Amstrad PCW256. Unfortunately, production of the media had pretty much stopped so for a while the drives were quite a lot cheaper than a box of 10 discs (which was more surprising then than it would be now).
The Amstrad box was so popular that production of 3" discs had to be restarted and 3" drives got a whole new lease of life. Still died in the end though.
"Oh, and for those that will mention HD downloads, I'm already rolling on the floor with laughter." - parent
iTunes has already made a lot of progress for music, movies will most assuredly follow. All it will take is something like a Tivo that can purchase movies online and allow you back them up for playback on your home PC (presumably after loggin in online) or the "tivo" you purchased it from. And if netflix ever starts actually putting good, and new movies, online for download, which is certainly in their benefit since they dont pay any shipping and handling fees....well you can see where this will go. The prices of server hardware is dropping as always, and very soon we will start seeing better options for downloading video than iTunes et al.
I can agree with the economics, but there are social issues to deal with, to wit: my wife isn't a-gonna go for me investing in yet another dead format. Not only do I have to explain why I bought into a format already defunct, but years from now when the player finally gives up, I have to explain why we have to buy those movies over again. Yeah, I only paid $6 back in 2008, but with the spousal unit, that's not the point.
And in a way, I can agree with her. Yes, if I play my cards right and spend some time on it, I can squeeze some value out of the demise of HD-DVD, but is it really worth my time?
And so, I continue to baby my two year old chinese DVD player while prices come down on blu-ray.
Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
That being said, is there still a chance for HD-DVD to come out on top again, especially considering the points in the above article?
I grabbed a cheap A3 last fall and then started grabbing some of the B1G1 deals that Amazon and other places were running. When the ax fell in January, I sat back, took stock and realized that with the money I'd spent on the player and about 20 movies, I'd barely have been able to buy the cheapest BD player. I'm not buying any more HD DVDs (mostly because I have most of the ones I wanted), but I did just order an Xbox 360 add-on for $50 so that I can rip the HD DVDs that I do have. I'll most likely pick up a BD player sometime this fall (Black Friday?), but for the moment, I'm enjoying a ton of great movies for what I don't consider to be a whole lot of money.
This guy's the limit!
> And why are people flocking to buy this decade's Betamax? Simple, they did the math.
What? The summary does a good job of describing why HD-DVD is a good buy, although they have to make up facts to do it, such as pricing a DVD player at $60. However, I think it is more likely that most of the people buying HD-DVD players don't know that it is dead. Never attribute to average people doing math that which can be adequately explained by incompetence.
Write your own Choose Your Own Adventure. http://www.freegameengines.org/gamebook-engine/
Save your HD-DVD player! Some loser, twenty years from now, may want it!
"The fight for freedom has only just begun." - Geert Wilders
The Criterion Brazil is great (wish they would re-release it in anamorphic or HD, though). But, for my money, the absolute gold standard of all DVD sets is still the Alien Quadrilogy boxset. It's like God himself came down and designed a DVD set. Nothing else even comes close.
SJW: Someone who has run out of real oppression, and has to fake it.
I bought the XBOX add on drive for £90 in January, while it's down to about £35 I got 5 Free HD DVD's thrown in - http://www.xbox.com/en-GB/hd-dvd/default.htm
;)
Since Toshiba pulled the plug I have bought another 7 HD DVD titles at an average price of about £6 each, plus I am a customer of http://www.lovefilm.com/ so I can still rent HD DVD's from them. In the UK, the firesale seems not to have started yet, so I'm currently buying most of my stuff from Australia
I also own one of these - http://www.palsite.com/9300ovi.html so I have a history of backing failed technology
Jonathan
...The other reason to buy a HD-DVD drive.
How can I believe you when you tell me what I don't want to hear?
John Titor is on his way back to the present to get a set of HD-DVD players ... Seems the only thing that can save the world from total destruction (in 2035 AD) is a program thats recorded on a HD-DVD ...
This isn't anything to do with saving face on a lost cause, it's saving money on movies that you can buy right now. Don't forget, that HD player will still play regular DVDs, so for someone who doesn't have those "GOTTA GET SOME OF THAT" early adopter genes, a choice of 500 cheap titles for a $75 player is a better deal than 700 full price titles for a $320 player.
Of course, the smart thing would be that ISPs distribute the content themselves, so it does not really cost them in terms of external bandwith. That's exactly what the major ISPs here plan to do with IPTV.
Real life is overrated.
The value prospect of HD-DVD right now is compelling. Picked up a 360 add-on for $49 - which comes with King Kong and five free* (admittedly, quite limited selection) HD-DVDs.
* + $10 shipping
Then picked up a bunch selling at deepdiscount.com for $10.
Then picked up Planet Earth for $35 (damn Canadian shipping costs - would have been $25 if I lived in the US!).
In all, I've spent maybe $250. That's not enough to even buy a Blu-Ray player.. but it was enough to get me HD player, plus a whole bunch (20)+ of movies..
Worst case scenerio.. in a few years, I have to rip all of these movies to BD. But for now, I feel like I've made out pretty well..
I am the maverick of Slashdot
What all the "Wal-mart DVD players are cheaper" posters are missing is that the upconversion on those players is mostly crap. If you've got an HDTV that has good internal scaling then all you need is progressive-scan; but some displays *need* a good quality upscaler, and the Wal-Mart brands are largely worthless for that (heck, even the models sold in CC/BB are only mediocre, usually).
Personally, I bought an HD-A2 when the price dropped below that of the OPPO players, which are widely considered the cream of the crop in upscaling DVD players. Many reviews on AV discussion boards indicated that the Tosh HD-DVD players were(/are) at least equal to the OPPOs, plus you got HD-DVD as a bonus. Meanwhile the only thing I sacrificed was support for formats like DVD-A/SACD on the OPPO, which I didn't plan to use anyway.
Of course that was before the format "died", so there was at least the *possibility* that the HD-DVD portion would be useful going forward. But if I were looking at it now, I'd much rather have a $60 "HD-A3 than a $30 Wal-mart brand just for the upconverting function...
Never buy what you do not want because it is cheap; it will be dear to you. -- Thomas Jefferson
Those who fail to understand communication protocols, are doomed to repeat them over port 80.
and bought a HD-DVD player. In the early going it did seem like HD-DVD would be on top, especially judging by Sonys track record in format wars ie. Betamax and Mini Disc. /.ers seem to forget that the early concensus here also supported HD-DVD, on price alone if not anything else.. I bought mine for $179.99 while a standalone Blue Ray was still just below $1000 (not counting the PS3). A 180 dollars lost isnt bad compared to my cousin who spent 1200 on the LG dual format player about 6 months ago.
I bought an HD-DVD when they went below $150 and see the value the author has seen. It is a great up-converter and is nice to see HD movies on my 56inch 1080p HDTV once and a while. Before I bought the HDDVD player, all the DVD players I owned displayed 480i which looked like crap. With up-converted DVDs I can wait until blu-ray players are below $200. It is fun to watch all of the emotional blu-ray fans try to still squash any mention of HD-DVD. :) They need to smell the coffee and wake up. DVDs aren't going away without a fight unless they pull a microshaft. Has anyone been to a blockbuster lately? I was just in a store today and still only see ONE small section for Blu-ray. It is just not that good of an improvement to justify the cost, right now. Don't be driven by the Hype of the media and the propaganda of corporations. About 50% of the people I know have HDTV's but not one cares that much about HD movies. One guy from my workplace, just bought a new plasma this week, but once he got it home he lost his excitement with the quality. When I asked that if he subscribed to HD service he verified that he did.
I See Two Problems With HD Today.
1. Not enough different to justify the large costs.
2. Camera work needs to improve, the camera's or camera operators aren't focusing fast enough! very sloppy. The variances is shots in a movie or TV show is very disrupted and annoying.
I do hear a lot of people ordering their DTV coupons! I did and will drop DirecTV in a heartbeat. Movies and Over-the-air HDTV, tired of the crap on Cable/Satellite TV.
I agree and would do exactly the same. The problem is, how many units do you have around your tele? I look at mine and see: Digital receiver; original hacked Xbox; Xbox360; Receiver (sound); VCR (yes, I still use it); Clock. This does not include the Ethernet cables to the Linux box stashed in a cupboard as a file server. All require power. Cabling is a mess (but cleverly piled behind cabinets). And now there are going to be HD-DVD and BluRay? Things are getting crowded (unless by stroke of luck I can get an architect in to design my new imaginary house and design a setup for him/her).
Two new units for a technology that may last, what, 5-10 years? When downloaded movies work great and I'm already set up for it.
.
"It can also act as an upscaling DVD player, so in fact you'll get better quality than a standard DVD player"
...than the TV's internal scaler. Then again, if your TV has a kick-ass internal scaler, especially if it's a flatscreen TV and it knows how to use the same tricks that ClearType et al use for an apparent greater resolution, then the upscaling DVD player is actually going to suck compared to the non-upscaling variant.
Uhm. No.
Now let me qualify that... an upscaling DVD player outputs a higher resolution picture to fit your higher resolution display. The quality of that picture can never, by definition, be -better- than that of a standard DVD player. Let me actually adjust that a bit - it can never be better than that from the same DVD player without the upscaling applied. Different DVD players may still have different outputs regardless of that.
Now, granted, a DVD player with an upconverter -may- do a better job at...
- de-interlacing
- resampling (the actual upscaling filter)
- determining what region to scale up
- determining the resolution to scale up to
That said, most TVs employ some of the worst upscaling methods out there, so I can't blame DVD and HDD player manufacturers for adding proper upscaling circuitry (chips), but the blanket statement that an upscaling DVD player gives greater quality than a non-upscaling one is wrong. It may give a better picture.
This entire format war is a mess, and a losing proposition for anyone who wants to upgrade their current DVD player for an HD version.
I recently went and dropped a small fortune on a top of the line 1080p HDTV, but I didn't buy an HD player, blu-ray OR HD-DVD. Why should I, when the offerings are skimpy, the players are either obsolete (hd-dvd and blu-ray profile 1.0) or overly expensive (blu-ray)? And in the case of Blu-Ray, everyone's still half-waiting for profile 2.0 players (other than the PS3) to come on the market for a decent price.
Instead, I bought a cheap upconverting DVD player, and spent $6 at Monoprice.com on a DVI to HDMI cable, and began downloading content from my favourite torrent sites. Most of this stuff I already owned in standard DVD, so I feel zero guilt about downloading it in HD format.
A year or two from now, when the prices have lowered to a reasonable level and the Blu-Ray library contains a nice selection of titles, I will look at buying a player. But for now, I'd rather spend the money on a new HDD.
Moral indignation is jealousy with a halo - H. G. Wells
I just picked up a JVC D-VHS used for a little over $100... D-VHS plays and records in 1080i so it looks just as good as HD-DVD or Blue-Ray and it cleans up all of my old VHS tapes. There's also a menu system just like DVD's have. I can record (encrypted) HD video and then backup to my pc thanks to the built in firewire port.
I could buy this fresh donut now for 100 or I could wait 'till this afternoon when it will be reduced to 50.
It would be nice to enjoy the warm doughy goodness now, but who knows there may be a new choco-chip version out later.
* Game Over * High Score: 264,846,927 -- Your Score: 14
I avoided the whole HD-DVD vs. Blu-Ray war (http://dvdupconvert.wordpress.com/) and, with Blu-Ray's prices still being sky high with features being limited, I'll keep avoiding Blu-Ray for the near future.
Maybe Sony will pay attention if HD-DVD sales actually increase following its demise.
HD-DVD differs from betamax in one important respect - Price! Before the format was confirmed dead you could buy the players for $200. Betamax never went that low. When it still looked viable it was two or three time that in 1980's dollars. In real terms this would be like a $1000+ piece of equipment.
Buying the losing format here just causes a minor inconvenience. Pus aside $20 a week and it will take less than 3 months to save up enough to cover the loss. Anyone who owns an HD DVD should find it pretty easy to cover that.
Because BR was rushed to the shelves to compete with HD-DVD they shipped an incomplete spec. They like to call it 1.0, but really for a next generation media format the only think it did better was the video and audio resolution. HD-DVD at least shipped with a complete next gen experience. So, people that bought and will buy stand alone BR players are going to get screwed if they want to play with all the new features on discs unless they buy a PS3 and not everyone wants a curved surface game player with no standard infrared remote in their home theater rack. Not to mention the confusion that will eventually arise as BonusView and BD Live discs start hitting the shelves and people return them because they can't play all the features because they have a 1.0 or 1.1 player. Lastly, prices of BR players are going to stay high for a long while now. Got used to that sub $200 HD-DVD player idea? Not going to happen with BR until next year because apparently they won't license the tech to Chinese companies that could mass produce cheaper BR units. They want to keep it inflated to maximize profit regardless of how it affects the market because there is no competition. As much as I dislike downloading movies because of the lack of extras and decrease in quality, I am hoping digital distribution catches on. This is a format war that was won by the studios because I really don't think the consumer won.
I've seen some pretty strange attempts at justifying bad purchases in the past, but this article tops them all.
WTF? Laserdisc is dead, as are all other analog formats. Almost all (more than 99.9%) of the physical disks for sale today, are digital distribution. Talking about digital distribution replacing discs, is like talking about beverages replacing coffee. No matter which side you take (pro or con) it makes you look dumb.