For nearly five years, consumer electronic heavyweights Sony and Toshiba have fought a back-and-forth battle over which next-generation DVD format would control the $24-billion home movie business. Although Sony's Blu-ray and Toshiba's HD DVD have essentially the same capabilities — lots of storage space, the potential for interactive elements and great-looking video — the battle has essentially split the market. As a consequence, consumers have been reluctant to gamble on one format or another.
However, the fight may be coming to an end.
Analysts have long said the deciding factor in the war won't be manufacturers — or even consumers — but Hollywood. Last week just as the annual International Consumer Electronics Show was about to begin, Warner Bros. Entertainment seemed to prove the theory by announcing an exclusive deal with Blu-ray, and tipping the balance. As the news sank in, experts barely stopped short of declaring Sony the winner.