Hollywood studios who fail to support both of the leading formats for next-generation DVD could be making an expensive mistake, according to a study.
Analyst Screen Digest suggests that by 2011 both Blu-Ray and its rival HD DVD will have established a strong foothold in the European and US markets.
Blu-Ray may have the lead in units now but it is not substantial enough to kill off its competitor.
While hybrid releases have become more common, some studios have supported one or other format but that may not make economic sense, says the research.
By next year, an estimated $270m of consumer spending in 2008 alone. Blu-ray-exclusive studios Sony, Fox and Disney could miss out on $175m in consumer spending by not publishing their films on HD DVD, says Screen Digest.
Screen Digest video analyst Richard Coopersays: 'Once it becomes clear that both formats are gaining customer acceptance, studios that have chosen to support one format over the other will realise that they are missing out on potential sales and will have to decide how long they can afford to place principle over profit. We believe that eventually most will decide to offer their titles on both HD DVD and Blu-ray in order to maximise their returns.'
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