By using this site, you agree to our Privacy Policy and our Terms of Use. Close
theprof00 on 29 December 2009
Edit Thread
Kasz216 said:
theprof00 said:
Kasz216 said:

Blu-ray isn't banned in China. What are you smoking? How can CBHD be outselling a product 3 to 1 that is banned. Though actually yes this is the BDA fault.

China said from the start "You'd better not charge DVD standard royalties or we will go to our own standard. Blu-ray responded by charging MORE then DVD standard was when they were making it.

Less manufactures also means it costs more to make each blu-ray drive now... since there will be less people undercutting each other. Which means, Blu-ray drives will cost more, slowing adoption (which is actually behind targets.) etc. etc etc.

It all leads to losing potential profits and delaying other profits in a very time sensitive business.

Your failing to see how this is relevant.

They are losing potential profits... which means there is no guarantee that Blu-ray will "vindicate" Sony.

sorry, you're right, br isn't banned. CBHD is a government sponsored, subsidized format in a totalitarian state. I got carried away. Again, I apologize.

I've already admitted that anything can happen. I said that people believe that BR will vindicate Sony, eventually. May not happen. But I'd also like you to meet me halfway and say that there is no guarantee that it is 'a giant wash' too.

 

I already stated it as such... many many posts ago.  When I said it currently looks like a giant wash.  Also I don't believe you can call is subsidized when it makes a profit.

 

For it to not be a wash, things need to turn around. Blu-ray has won the format war, but at present it may be a Pyrrhic victory.  It's moving to slowley and has to worry about profits being eaten away from too many players right now.  It would of been better off having a lisensing structure like HD-DVD from the start.  It still wouldn't of reached DVD levels, but HD-DVD would of went down much faster and China wouldn't of went rogue.  China went rogue BECAUSE Blu-ray won the format war.

 

Also, while China is a totalitarian state... it is not so when it comes to consumer goods.  To think so is to not understand the Chinese market.

China keeps control of it's people by force, but also by promising them stability and prosperity.  They aren't your average dictatorship.

Foreign goods selll extremely well vs Chinese products.  The Chinese as consumers are much less brand sensitive and price senesitive then your average consumer... it's actually what makes the Blu-ray losses so distrubting.

 

CBHD is subsidized by the government. The help take some of the initial price off of the players. The players are in fact quite expensive. (almost 300$) Secondly, the reason why CBHD is doing so well is because the average price of discs is 5-7$, compared to 30$ for BR. So while BR players are nearing 100$, you get more movies over time with CBHD. It's just like the VHS format war. The media is rock bottom price.

You also have to look at it this way. You said China said "no DVD style royalties" and BR increased the royalties. At this point you have two outcomes. You can drop the BR royalties from 30 to sub-10 or keep it at thirty and make the same amount of money in one year that you make in 3 with lower pricing.

You make it seem like China would have never done CBHD if BR royalties were cheaper. I don't think that is true at all. China was always going for this format. It's been in development since HDDVD died.

Personally, I think BDA knew this would happen and so made as much profit out of it as they could. There was probably never a chance to hold the Chinese market when the DVD forum is willing to receive no royalty for the product.