Marketing

Product Lifecycle and Blu-Ray

SONY Corporation
Akio Morita & Masaru Ibuka
Smart and presentable young men (sony)
1946 Japan
Headquarters in Tokyo, Minato
Revenue exceeding $ 78.88 billion


Toshiba Corporation
Hisashige Tanaka, Ichisule Fujioka & Shoichi
Miyoshi
Fundation, Changes
1939 Japan
Headquarters in Tokyo, Minato
Revenue $ 72.0832 Mio


VHS VCR
Comparation
1976
VCR

First on the market
2h record
Better Quality
In `88 disapeared
VHS

4h record
Active market placment
Cheaper
still available

Both

Technology
DVD Base
Laser of the same wave length

Differentiation
Blu-Ray
Sony, Pioneer, Philips,
Panasonic
First on the market
More layers & more
capacity
High price
7 contracts
HD DVD
Toshiba, Sanyo,
Kenwood, Intel
Less layers
Less capacity
Lower price
3 contacts
Will the differences matter?
Despite being physically similar, Blu-ray discs
have the highest quality.
While both formats produce high quality, can
one really tell the difference?
The methods of encoding are different,
therefore:
Blu-Ray discs can hold max 200GB of data
(SL:25Gb, DL: 50Gb)
HD DVD discs can hold max 90GB of data
(SL:15Gb, DL:30Gb)
Capacity will always be our #1 concern.
While the VHS/Beta war was all about tape
capacity, many critics believe that this is not an
issue here.

Both can hold a feature length movie no
problem, but people want bonus features.

Blu-ray believes having bonus features on one
disc with the film is a selling feature compared
to the usual 2+ HD DVDs (HDi and BD-J)

Introduction of the 2 formats
In April 1996, Toshiba introduced the first
HDDVD player at $499 and $799.

In June 1996, Pioneer introduced the first Blu-
ray player at $1800.

Toshibas introductory strategy was to price the
player lower than the production costs with the
assumption that the market would be populated
with their product and become recognized.
Product Lifecycle
Introduction of the 2 formats
Toshiba had ignored one important element:
You have to build awareness before you can
assume price isnt an important or overriding
factor.

With Pioneer having targeted consumers who
focused on quality and performance, they
introduced their player much more expensive
but closer to theater quality then the HD DVD
player from Toshiba.
Product Lifecycle
Movie Studios
Blu-ray has signed 7 studios while HD DVD only
3.

Some companies, like Warner Bros., will release
in both formats.

Will image quality, capacity, price and content
availability be deciding factors as they were
with the Beta/VHS war?
Video Game Consoles
With PS3s being shipped with a Blu-Ray drive
and XBOX 360s with a HD DVD drive, the
competition is fierce.

The PS3 plays games with Blu-Ray technology
and can even play normal DVD movies. (No HD
DVD as its the main competition) The XBOX
360 plays games with HD DVD technology.
The format war: HD DVD vs. Blu-Ray
There are 2 other assumptions about this
format war

Both formats could succeed
or
Both formats might fail



These two technologies can adopt each other
Dual format players can reduce the revelance of
format labels
Adoption of game platforms are not slowed in 90ies

Assumption 1
Assumption 2

End of the century-long era of physical media
Consumers are moving beyond shiny discs
Television programming is competing with home
video market
Nowadays and Future
Tv channels
CableTV provides channels just for movies
Online (movie portals) web movies
Direct movies on portable devices


The actual lifecycle for VHS is contrasted with
the potential lifecycle for Blu-Ray
Bibliography
http://www.lgblog.de/wp-content/uploads/2008/02/wal-mart_blu-ray.jpg
http://www.smecc.org/video/wpe4D.gif
http://concount.files.wordpress.com/2008/11/bluray-vs-hddvd.jpg
http://www.blurtit.com/var/question/q/q7/q72/q724/q7243/q724306_374408_product-life-
cycle.png
www.blu-ray.com
www.wikipedia.com/blu-ray