“Christmas 2007 is going to be critical for the hi-def video business, but with so much at stake on both sides we think it is highly unlikely that one format will emerge as the 'winner.'”
Screen Digest believes that both formats’ steadily growing user base will allow them to coexist until at least 2011. However, studios opting to support only one format are reportedly losing out on as much as $270 million in revenue. Moreover, Screen Digest predicts that when studios currently committed to one format over another realize that they are missing out on potential sales, most will decide to offer their titles on both HD DVD and Blu-ray in order to maximize their returns.
The next few months should prove if their theory is right. Meanwhile, pressure on both formats is building up with the proliferation of new services which deliver high-definition content via broadband, eliminating the need for physical media altogether.