Ask John: Why is the Industry Trying So Hard to Promote Blu-ray?

Question:
Why do Hollywood and certain domestic anime companies continue to assert the value of BD when it’s clearly an overpriced gimmick? With the advent of the Matrix on the format, DVD was instantly accepted two years after it officially made its debut. BD only makes money when the manufacturers slash the price every few months. Yes, certain titles do sell well enough for certain studios, but it’s clear that they should be selling a lot higher.

$15 more for a prettier version of the same 50 minute schoolgirl vampire movie I can get for half that price? If I want to pay $5 more for an exclusive 15-minute Oshii interview on Sky Crawlers I’ll also have to buy a new player to watch it. Bandai Visual thought Jin Roh was popular enough for me to pay $100 for it on BD, when I could get it for a quarter of that price on DVD. Manga thinks that version of Ghost in the Shell with the new dye-job is worth paying extra for, just to hear Oshii justify the pointless endeavor on the commentary track. So, if I have to be coerced or bribed into buying these titles, and companies are still discounting their Blu-rays at rates they wouldn’t for DVD, where exactly is the profit in this format? When are shareholders for these companies going to admit that, when it comes to BD, their execs have no clothes?


Answer:
I’m far from an expert on the technical attributes of Blu-ray technology. Perhaps I’m still a dinosaur because I don’t have a BD player, an HD television, nor any Blu-ray discs. (Actually, I do own the five-disc Blade Runner BD, but that’s an exception.) I would be hesitant to reply to this question, but I suspect that it’s one which many anime fans wonder. So while I may not be able to provide a conclusive answer, I can provide an opinion that will hopefully encourage another examination of the situation.

From one perspective, the Blu-ray format is performing well in America and even better in Japan because BD sales are increasing while DVD sales are decreasing. However, BD sales still account for a small fraction of all home video sales. They’re not anticipated to overtake DVD in for foreseeable future. And BD adoption is not increasing rapidly or widely enough to provide a future financial foundation for the film industry. America’s anime distribution industry, which has traditionally championed home video technology advances, has been noticeably slow to transition to Blu-ray. And the domestic distributors that have moved into BD releases have merely dipped their toes. The question posed to me isn’t about the difficulty or necessity of transitioning to Blu-ray, so I’m not going to discuss that. This is a question about why Hollywood and, to a smaller degree, the anime industry continue to promote BD as the format of the future when the consumer market isn’t convinced. Home entertainment distributors simply have no alternative. The consumer audience isn’t convinced of the need to upgrade to BD in part because the necessity is, in fact, exaggerated, and in part because the consumer, especially the anime consumer, sees the home entertainment market fundamentally differently from the commercial distribution industry. The home video industry is obligated to approach home video distribution as a fair and legal match while consumers don’t have to play by those same rules.

The jaded, selfish, and spiteful critics of the video distribution industry love to trot out the Darwinian “evolve or die” argument. They cite that legitimate distributors must earn consumer purchases by providing products that consumers want to purchase. It’s unreasonable to expect consumers to purchase inferior goods, or support dated or restrictive formats and distribution methods. All of this sounds like an absolutely sound argument, however, in reality it’s based on an apples to oranges comparison. In the present high definition era, I’ve lost count of the times I’ve read anime fans insist that they refuse to continue purchasing retail DVDs because the maximum resolution supported by the DVD format is 720×480 while fansubs are common in higher resolutions including 960×720, 1024×576, and 1280×720. Likewise, when digital fansubs in full high definition 1920×1080 resolution are available for free, purchasing them on BD is a less appealing prospect. Legitimate film distributors must respect legal copyrights, distribution agreements, and the technological limitations imposed by legitimate market conditions and economic and technological practicality. Consumers don’t acknowledge those same limitations. The consumer insistence that the industry evolve and keep up with consumer demand is an unreasonable and impossible demand because it only works in a fair playing field. But consumers expect the legitimate distributors who play fair to compete against the unfair competition of video piracy and unlicensed distribution.

Consumers want the best. Blu-ray is presently the best that the law and practical market conditions allow. But Blu-ray, the movie industry’s best, isn’t good enough for consumers that have become accustomed to better, faster, and cheaper that also happens to be illegal. There’s no question that a large portion of American consumers literally don’t see an advantage in Blu-ray. Countless consumers don’t care about supplemental features or interactivity. Countless consumers literally can’t distinguish a significant difference between the clarity of standard definition and high definition video. And, in fact, many current BD releases are simply standard definition video artificially upscaled to HD resolutions. As other observers before me have noted, the transition from VHS to DVD offered not only improved audio & video quality, but also increased convenience and value. DVDs are smaller and more convenient to collect, store, and access than video cassettes. Even the transition from laserdisc to DVD, which was a smaller gap in audio & video quality, still represented a major leap forward in practical convenience. The transition from DVD to BD doesn’t offer added practical benefit; it’s a transition from one compact digital disc to another compact digital disc. So apart from videophiles, the upgrade to Blu-ray doesn’t seem especially necessary to average consumers. But what else can the home video industry do?

Hollywood, and even America’s anime industry, are making the greatest concessions they can to appease consumers. Blu-ray is still heavily promoted as the future format of choice because the evolve-or-die mentality makes the only alternative extinction. Consumers can easily suggest that the home video industry simply react faster and evolve to meet consumer demand more promptly, but the movie industry will never be able to move as quickly as consumers demand because consumers have become accustomed to measuring efficiency by the speed of video piracy, which doesn’t have to deal with the time-consuming and expensive obstacles that legitimate home video retail does. Japan’s Blu-ray market is largely being supported by otaku who are obsessive collectors; otaku who purchase Blu-ray discs as a means of expressing their devotion and appreciation for anime. America’s otaku community has seemingly almost entirely forgotten the concept of expressing gratitude through practical DVD & BD purchases. The American market has developed an entirely selfish attitude that expects the entertainment industry to entertain with instantaneous responsiveness for practically no compensation. With that fact in mind, Hollywood’s insistence on promoting the Blu-ray format is absolutely reasonable and appropriate, and it’s actually the lukewarm consumer response that’s somewhat unreasonable. Film distributors have no profitable alternative to encouraging Blu-ray adoption while consumers – particularly anime fans – are increasingly turning to illegal options and legal digital distribution that doesn’t generate much profit.

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