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Old 04-24-07, 03:23 PM   #17
Ruined
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Default Re: Walmart orders 2 million $299 HD DVD players, in stores soon!

Wal-Mart Names HD DVD the Winner

http://news.digitaltrends.com/talkback184.html

Snippet:

Quote:
Originally Posted by Rob Enderle
There is one retailer that has the power to call the winner of the protracted Blu-Ray vs. HD DVD fight and that vendor is Wal-Mart. Over the weekend they apparently leaked plans to bring in a massive number of low cost (possibly sub $200) HD DVD players for Christmas.

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For Wal-Mart the only real metric is cost. Wal-mart doesnít really make money off of the movies and do not sell high-end home theater equipment. They are known for aggressive prices and, as mentioned above, they subsidize their DVD sales. They needed something that could sell for under $200 soon and they needed the lowest cost of the new formats. This is where HD DVD shines, not only had Toshiba agreed to license to low cost manufacturers early on, but HD DVDs are pressed on the same lines that regular DVDs are, they require no major equipment change out and the blanks, when compared to Blu-Ray are less expensive as well.

This made the decision simple, Blu-Ray was just too expensive to make this work and any technical advantages were insignificant against Wal-Martís need for the lowest cost offering. For them it is about price and that is where HD DVD clearly has the sustainable advantage.

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It means that any studio wanting Wal-Martís support after year end had better be selling HD DVD movies. Wal-Mart wonít be promoting Blu-Ray and, after year end, will increasingly focus their marketing on getting people to buy into HD DVD players and the related HD DVD movie from them.

In short, the Blu-Ray aligned studios will now have to either support both formats or risk losing much of Wal-Mart's business and given how material this business is to them, you have to think that an anti-Wall-Mart decision would have a material impact on their bonuses and career longevity. It certainly puts Columbia Pictures, which is owned by Sony, in a particularly uncomfortable position.
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