UK-based media analysts Screen Digest has released a new report which says that that studios are likely to end up supporting both Blu-Ray and HD-DVD in the high-def disc war and that battle will ultimately end up being a stalemate says High-Def Digest.
The report includes detailed forecasts of consumer sales and revenues in the US and Europe for both new video formats through 2011, with both formats predicted to establish a viable installed base.
Analyst Richard Cooper says “Christmas 2007 is going to be critical for the hi-def video business. Both formats will be seeking to secure consumer buy-in to their proposition during the critical holiday season but with so much at stake on both sides we think it is highly unlikely that one format will emerge as the ‘winner.'”
He adds that “Once it becomes clear that both formats are gaining customer acceptance, studios that have chosen to support one format over the other will realize that they are missing out on potential sales and will have to decide how long they can afford to place principle over profit. We believe that eventually most will decide to offer their titles on both HD DVD and Blu-ray in order to maximize their returns.”
How much is that? The report says that format-exclusive studios could be missing out on significant revenues, potentially eschewing over $270 million in consumer spending over 2008 alone. Screen Digest expects several single-format studios to reassess their positions in 2008 – despite the recent Paramount HD DVD exclusivity announcement.