Blu-ray supporters are cutting prices but still having trouble selling standalone players and movies, and digital content distribution is one of the leading factors giving Blu-ray problems. Consumers are weary of spending $250+ for a new player, and sometimes $25+ per movie title for a new high-definition format when a set-top box or cable TV provider can offer the same features for a lower cost.
In the United States, digital downloads still aren't common in most house holds, but the technology is clearly progressing at a high rate.
Dish Network recently issued a press release announcing it now is offering MPEG-4 content in 32 markets across the country, with expansion scheduled to continue throughout the rest of 2008 and early 2009.
Major network cable companies, including Comcast and Road Runner, also have increased their high-definition content catalogs. Even smaller cable companies and satellite providers offer digital downloads and content in HD directly to the TV, without the need of an external player -- demand for Blu-ray simply isn't there for most consumers, analysts agree.
Verizon also is upgrading its FiOS TV package to include the ability to stream recorded HD video directly over the fiber network at a faster speed than regular cable TV.
Steve Jobs snubbed Blu-ray during an Apple press conference in Silicon Valley, and had choice words about the technology.
"Blu-ray is just a bag of hurt," Jobs said during the conference. "I don't mean from the consumer point of view. It's great to watch movies, but the licensing is so complex... We're waiting until things settle down, and waiting until Blu-ray takes off in the marketplace before we burden our customers with the cost of the licensing and the cost of the drives."
Indeed, Apple iTunes will offer high-definition content from ABC, CBS, Fox, NBC and other channels, adding to its growing catalog of HD shows and movies.
Analysts and industry insiders have predicted Blu-ray will be around until 2012 or 2013, while research firm iSuppli expects set-top boxes to be available for at least 10 more years. Last year, 35 percent of all STBs shipped had DVR or high-def support, and by 2012 that number is expected to be as high as 70 percent.
Low-cost HD will be more popular in 2012 with help from STBs, not because of Blu-ray adoption.
But look for the Blu-ray camp to continue to create new players and lower costs to try and persuade consumers to purchase the technology, regardless of how much STBs and digital content continues to grow.
