March 3, 2008

HD DVD scores in the format warCould Toshiba become the most progressive consumer electronics company when it comes to digital distribution?

As I and others have noted, HD DVD was never the primary factor in slowing the adoption of Blu-ray. According to NPD’s research, satisfaction with existing DVD players was the most cited reason among those who had no plans to purchase a high-definition disc player when we surveyed consumers last year. Therefore, the end of HD DVD has not meant a free pass for Blu-ray.

In an interview with the WSJ, Toshiba’s Atsutoshi Nishida points out the value of a diversified corporate portfolio, noting that HD DVD was but one of 45 strategic product groups within the electronics conglomerate. He also divulges plans to stay or become relevant in the twin forces squeezing Blu-ray from the past (upconverting DVDs) and the future (digital downloads) to continue to compete indirectly with Blu-ray. Nishida points to wired technologies that are becoming wireless (a reference to HDMI?).

Of course, Toshiba’s PC strength to which Nishida refers is in notebooks, and most of the connectivity scenarios he discusses have been focused on stationery PCs (although that is changing). In any case, it seems clear that Toshiba will have more occasion to work closely with its HD DVD promotion partner Microsoft. The conspiracy theorists may have been wrong, but the format war has brought at least one major electronics company to look beyond the disc.

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