Is HD DVD Trying to Lose?

As many of you know I have been somewhat of a critic of the high definition DVD format war. I have never understood how apparent shortsightedness and desire for short-term corporate licensing profits could have prevented so many companies from embracing a unified format. Instead, most companies are bent (I could end the sentence here) on duking it out and forcing customers to flip the bill and go through the decision-making process.

But HD DVD of late seems to WANT to fail. Or at least the software companies backing that format (Warner Home Video in particular) want it to fail.

I mean, what other reason would there be for the hybrid HD DVD/DVD format?

Here is an advertisement in a local Circuit City flyer I received this week:

So, we see from this flyer that "HD DVD discs cost more than Blu-ray". THIS is what the consumer sees when they go to the store. This is what the consumer sees when they look at the flyer. The consumer doesn't realize that this is a hybrid DVD and HD DVD format disc.

And the consumer doesn't care.

Because NO consumers are going to WANT hybrid HD DVD/DVD discs.

Why won't consumers want these hybrid discs? Because no one likes to spend 3x the cost of a regular DVD just to have a disc available in the eventuality they decide to buy a high definition DVD player whose format may or may not exceed niche status let alone "win" the current format war.

People with HD DVD players, for instance - we utilize a Toshiba HD-XA2 player in a couple of our reference systems, already are simply being forced to pay for the additional cost of manufacturing and mastering that goes into including the DVD side. They get no real benefit and in fact would do better if they could just buy a straight HD DVD disc.

In case this isn't apparent enough to our readers, please read my lips: Warner Home Video, whether on purpose or by sheer bad taste, is sticking it to HD DVD. There is no option for consumers to purchase HD DVD only versions of this (or other current) movies from Warner Home Video. So what's going to happen? People are going to think twice - that's what. And people are going to start wondering why HD DVD movies (in some cases) cost more than their Blu-ray counterparts.

Warner does have a history of bad decisions in this arena. Remember TotalHD? That format, which was supposed to unite both formats under one optical disc (HD DVD on one side and BD on the other) seems all but dead. If they can't make a hybrid disc cost the same to consumers, how on earth would they be able to price a dual HD-format disc? Consumers aren't exactly rushing in droves to grab $30 high definition discs as it is. Would they rush faster to buy a $40 version that included a format their disc player didn't require?

Somebody needs to get laid off - whether it's marketing or executive management I don't know, but none of these hybrid solutions mean anything unless the studios are willing to bite the bullet and keep the retail prices down.

One thing we know from history - studios and manufacturers are more than eager to repeat it. Now, in all fairness is this HD DVDs fault? Not entirely, but somebody needs to step up to the "plate of common sense" and inform studios and manufacturers of how market demand works and what consumers are willing to pay. Either the research isn't being done, or egos are too large to listen.

And this is just one more reason I hate format wars.

Update 08/01/2007: We received this email (excerpted) from a reader who pointed out that the SE version should have been used in our DVD price comparison

The special edition DVD of 300 is $22.99 [which is a closer comparison, having more special features like the HD DVD version], making the HD DVD cost 1.52X that of the DVD, and not 3X as you claim.

We have also heard back from consumers who prefer a hybrid format so that they can play the disc on multiple players, many of which take only standard definition DVD. With this in mind, our main thrust is that HD DVD and BD should do everything in their power to give consumers value-added while keeping costs down. Charging premium for special features and hybrid discs isn't going to help win any format wars.

- Clint.