Why DVD Will Survive the Format War

CNN Business 2.0 Editor Chris Taylor has posted an layman's terms analysis of the next-generation format war online today, looking at how consumers view the expanding home video options and while they'll likely stick with traditional DVDs for years to come.

While it glosses over a variety of issues that make HD DVD and Blu-ray players a key growth market for CE retailers, it does provide an interesting overview of the way in which this "format war" is vastly different from the VHS-Betamax war of the 70s and 80s.

In short, Taylor argues that despite a multimillion dollar marketing campaign by HD DVD and Blu-ray backers, superior resolution, vast movie studio support and even the growing impact of direct downloads on Apple's iTunes Store and Amazon.com, the current red laser-based DVD technology is likely to survive well into the future.

Because more than 120 million devices in the United States are capable of burning DVDs--more than enough for every household, Taylor notes, there is a pervasiveness and perceived value to the traditional DVD player that extends far beyond what consumers think they're getting in direct downloads and first-gen HD DVD and Blu-ray technology. While blue laser technology provides vastly superior visuals and sound, and direct downloads provide unparalleled portability, traditional DVDs still provide the best of both...and the best bang for the buck.

To read the full analysis, click here.