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Posted by asj on 04/06/06 04:55
Mr. X wrote:
> "asj" <kalim1998@yahoo.com> wrote in message
> news:1144241239.711876.316950@u72g2000cwu.googlegroups.com...
> > Research firms (e.g. Forrester Research) note that Blu-ray will most
> > likely win in the format war:
>
> And they're wrong. :)
>
> Since I'm bored, let me tell ya what will happen.
Since i'm not bored and actually am working right now, i'll tell you
you're wrong and summarize why.
A lot of money has already been spent on this by the blu-ray group, and
they know this is a long-running war. They will be prepared (Just like
the HDVDV group) to sustain losses for some time because they know the
profits in the end far outnumber the relatively small losses at the
beginning.
How do i know this? because the cellphone industry went through the
same timeline. At the beginning the cellphone was used mainly for voice
calls. When the cellphone manufacturers started adding Java games, and
ringtones, and other Java apps to their cellphones, they had to invest
much more money on the product and service infrastructure. They also
had to contend with a public that AT FIRST was very resistant to using
phones for anything but voice calls.
But the cellphone companies and carriers knew that small losses and
investments at the beginning were acceptable because the possibilities
at the end were so promising. Data services were the way to go. AND
THEY WERE RIGHT.
After 5 years, almost all cellphones today come with Java capabilties,
and data usage and revenues from data use has soared. Average Revenue
Per Unit (ARPU), which measures the average monthly revenue generated
for each customer has SOARED.
I believe in the long run, home entertainment systems will go through
the same cycle.
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