Monday, September 11, 2006

Follow the money...

"War is hell, Mr. Thornhill, even when it's a cold one."

I'll agree with Ralph on most of his points about HD DVD and Blu-ray. To most Americans the discussion about the merits and future of these two formats is about as relevant as a discussion about Nestorianism (my apologies if that is relevant to you).

So what's driving electronics companies to jump on board and push a new technology, even when there's no (demonstrated) drum beat from the public for something better?

Well, there's profit of course. These days, you've got to have something new if you want to make money. When Joe Nascar can drive down to Walmart and pick up a DVD player for $26.43 (feeling more upscale? Go to Target), you can bet the profit margin is pretty slim.

Contrast the bargain-basement price of a DVD player with the cost of new HD DVD and Blu-ray players and you'll see numbers that will make the executives crack a smile. And then there's the new discs you'll want/need. Everybody's happy now.

If only most people cared. Well, that's what advertising's for, isn't it?


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