Strategy Analytics: Blu-ray Not Threatened By Full HD Broadcasting

Business Wire, August 26, 2008

BOSTON -- The arrival of Full HD television service is unlikely to affect sales of Blu-ray discs or players, according to the latest report, "Full HD: Blu-ray Camp Claims Broadcasters 'Mislead' Consumers," from the Strategy Analytics Connected Home Devices service. Satellite companies DirecTV and Dish Network in the US, as well as cable operator Numericable in France, have recently introduced Full HD programming in the 1080p format. The Blu-ray Disc Association has objected to claims that these services deliver high definition picture and sound equal to that delivered by Blu-ray Disc, and suggests that these comparisons are irresponsible and misleading to consumers. Strategy Analytics believes that satellite providers are competing primarily with cable and IPTV companies, and not with the Blu-ray Disc format itself.

"1080p, or Full HD, is the video quality benchmark set by the Blu-ray Disc format," notes David Mercer, Principal Analyst at Strategy Analytics. "It was inevitable that television service providers would seek to emulate this standard, but their aim is primarily to increase the pressure on rival services, rather than compete with Blu-ray itself."

According to Strategy Analytics research, many consumers are confused by HDTV services. In the company's most recent survey, 15% of European consumers believed that they are receiving HDTV service, whereas in reality the figure is only 2%.

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