"CDs and DVDs both offered a clear value proposition to consumers when they were introduced to the marketplace. There was a visible difference in the experience that was easily grasped," explained Michael Gartenberg, JupiterResearch Vice President and lead author of the report. "The real competitor that both these formats face is not each other, but rather low cost DVD players with up-scaling capabilities that pass the 'good enough' test for most consumers."
Further confusing the issue is the growth and penetration of broadband, which is facilitating content delivery directly to consumers without the need for any optical disk. Combined with ease of use and the ability to move content from room to room as well as onto portable devices, the market for downloadable video content continues to grow each day.
"The abundance of material in such a wide variety of formats is going to make adoption of any single standard very difficult as consumers may well opt for a combination of what is already available," said David Schatsky, President of JupiterResearch. "To be successful, manufacturers must offer a clear and visible improvement in quality and functionality as well as place greater emphasis on platform longevity and backward compatibility."
The complete findings of this report are available to JupiterResearch online at www.jupiterresearch.com.