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Old 01-19-2008   #68
Vinyl Rules!
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Default Re: The High Definition Video War is OVER: Apple iTunes is the Winner!

Originally Posted by TheMoose View Post
Because I want 1080p with Lossless audio.

This mass market your speaking of is mostly under 25 & they don't have the buying power of us over 40 & we do care about high rez video & audio & most of us don't do iTunes!

I respectfully disagree.

There is buying power and then there is BUYING POWER. I teach Business Ed and Marketing courses now after a very successful Marketing and Advertising and Consulting career, and the discretionary income of the 25 and under segment is much, much greater than those of us in our 40's and 50's. And this is not new news: Advertisers covet the 25 and under segment because they have so much discretionary income, but their media viewing and listening habits are much more fragmented than those over 40 and they are very, very difficult to reach with traditional advertising. Professional Marketers are still searching for a cost-effective way to reach this group of consumers. If you don't believe me, just watch the convoluted marketing efforts the major brewers are making to try and recapture the market they have lost to micro-breweries and specialty imports.

As for the "buying power" you cite, those of us over 40 who have the buying power to purchase a Blue-Ray or HD-DVD player and pay double the price of regular DVD's for the software also have the following expenses most of those under 25 DO NOT HAVE:

1. We have mortgages - They do not: They still live at home or have roomates.
2. We have to put kids through college, pay for braces, etc. - They do not.
3. We have health insurance and life insurance and home owners insurance premiums to pay
- They generally do not.
4. We set aside contributions to our 401(k) or Roth accounts, if we are smart - They do not.

I could go on ad nauseam, but I think you get the point: The group of consumers 25 and under is not weighted down with the fixed living expenses those of us over 40 generally have, and don't forget, this group of consumers is also not weighted down with large collections of physical music media either - They store it on their iPods and MP3 players and think it's great.

So consumers like you who can buy a Blue-Ray or HD-DVD player and buy the appropriate high rez discs are truly an insignificant market compared to the "great unwashed young masses" who grew up on music downloads. If you think they are NOT going to follow the same downloading behaviour with video, then you are living in an alternative universe, like the Sony execs.

And Apple has got this figured out. Go back and read the previous posts.

Another factor driving Apple's strategy is the simple fact less than 5% of Americans have an HDTV with a screen size larger than 42". And it's almost impossible to see any difference on a 42" screen between 720p and 1080p. So if you are Steven Jobs, or any other CEO who is going to maximize shareholder profits, you are going to go where the money is.

And the money is with the video downloaders who will be perfectly happy with 720p. I can respect the fact you want 1080p with lossless audio, but the brutal fact of the marketplace is that you represent an insignificant group of consumers that no mass marketer gives a rat's tutu about.

I am not against 1080p and fully lossless audio - I, too, would prefer it to downloads, but 5 years from now, IMHO, this will be an even smaller market than those of us who still purchase newly pressed vinyl records. Were I the CEO of a video hardware or media content company, I would be wasting my time chasing 1080p physical media products - A smart CEO, like Mr. Jobs, will be looking how to get more of the 25 and under consumers to buy more iMovies and iTunes, because that is where the money is going to be made.

Yes, a few specialty manufacturers will likely continue to carry the torch for 1080p hardware, and maybe even a couple the content companies will offer 1080p physical media for a few more years, but the marketplace reality is that it is much, much less expensive to ship electrons to your home than to manufacture and ship a high-resolution DVD to your home.

Verizon has also figured this out with their FIOS service that runs fibre directly to the home. They are once again the US's largest telephone company and their foresight in investing in fibre to the home is going to allow them to sell many, many movie downloads whilst the other telcos and cable companies scramble to upgrade their infrastructure. Even Consumer Reports ranks FIOS as the best of all of the integrated voice/broadband/video services, and it is the fibre to the home that makes Verizon the 800 lb. gorilla right now.

Like I said in my first post, Blue-Ray may have won the battle, but both high-resolution physical formats have lost the war - They just don't know it yet.
"The West won the world not by the superiority of its ideas or values or religion but rather by its superiority in applying organized violence. Westerners often forget this fact, non-Westerners never do."
Samuel P. Huntington

Last edited by Vinyl Rules!; 01-19-2008 at 11:37 PM..
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