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Tuesday, January 06, 2009

Workflow For Internet Enabled Blu-ray Discs Launched: Will BD Live Be Adopted?

Bluray-Logo This morning, Akamai, Ascent Media and Sofatronic announced the creating of a new integrated digital workflow and distribution solution for the production, hosting and delivery of BD Live functionality for Blu-ray Discs.

The companies say the new service provides a more efficient and cost effective way for movie studios and content creators to harness the full power of BD Live’s Internet-enabled features, such as bonus content, online community, and interactive and e-commerce applications.

While it's a smart idea for all three vendors to partner on the new service and lay the groundwork for the future, I wonder just how many of the over 1,200 Blu-ray movies offered today have BD Live functionality? And more importantly, how many studios moving forward are going to support the extra costs involved with providing additional content via the Internet? Ideally, this is where Akamai, Ascent Media and Sofatronic's solution would come in, reducing the cost and complexity of making this content available.

But outside of fixing the workflow issue, there are two other problems that need to be resolved, the biggest of which is convincing consumers to purchase Blu-ray players. At the end of Q3 2008, the Blu-ray Disc Association said that "more than 6.5 million Blu-ray capable players, including PS3, have been sold in the U.S. and more than 15 million units have been sold worldwide." But what the Blu-ray Disc Association doesn't say is how many of those units are broadband enabled? Depending on which research report you want to believe, it is estimated that between 20-30 million Blu-ray units are expected to be sold in 2009, with the percentage of those capable of connecting to the Internet unknown. That being said, nearly every analyst report in the beginning of 2008 predicted 30 million units would be sold for 2008, and those estimates were high by at least 10 million. The bottom line is that broadband capable Blu-ray players need to get adopted first and movie studios need to make a commitment to BD Live functionality.

In addition to the adoption problem, the other issue is whether consumers get any real benefit getting extra content from a BD Live enabled service as opposed to just including that extra content on the disc itself. Three months ago when the Iron Man disc came out, whoever was serving up the BD Live content had servers that could not handle the load, which prevented many customers from getting the extra content. And as pointed out in an article on CNET, the fact that most BD-Live features could easily be fit on a Blu-ray Disc, instead of having to download them from the Internet, makes you wonder if the BD Live feature is really worth it. It might just be too new for consumers to see what will be possible with BD Live, or it may just be an industry using a technology because it exists, even if the demand does not. For now, it sounds too early to know either way.

Over the coming weeks I will be getting hands-on with an Internet enabled Blu-ray player and taking a look at the BD Live functionality and the Netflix streaming service. I'll be posting a review of both shortly.

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Comments

Blu-ray is already obsolete. Physical disc delivery of content is obsolete. The winning solution will be internet distribution via set-top/gaming console in the near term (watching Netflix films via Xbox, Roku, Boxee, etc.) and in the long term, those services will be built into the television itself (LG playback of Netflix is an example of that already starting to happen).

Netflix likely spends less on the delivery of the content (even in HD) than on shipping a disc back and forth (and managing physical inventory, shipping facilities, etc.). Netflix (and by extension the content producers, studios) also isn't restricted by the need to decide on a video quality before producing a physical good and requiring that the viewer have a compatible player to watch the disc.

Physical delivery of media is history. It's already happened with audio in a big way and this year it will happen with video.

I cant see physical media disappearing certainly not by this year.

There is a big diffrence between movies and audio the biggest one being the size of the download.

From what i have seen of download services the quality is not as good due to compression its always going to have the problem of quality verses file size.

Over here in the uk most of the isp have a limit to how much you can download a month some of these limits being less that what the average movie would normally way in at. also broadband still isnt really fast enough again in the uk most households are on copper wire which just cant handle the high speeds.
And from what i gather the us is no better.

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Dan Rayburn: 917-523-4562 - danrayburn.com - e-mail
EVP, StreamingMedia.com, Principal Analyst, Frost & Sullivan


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