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Re: What exactly constitutes "success" for a hi-rez format? (long)

We all understand that no two markets are exactly the same, but there is something to be said for seeking underlying principles. Otherwise, we must throw up our hands and say there is nothing to be learned by the study of business in general.

However, it is valid to point out that dining does not rely on networks of buyers and sellers who share in a format, but audio does. It is possible that record labels will line up behind just one format if that one has enough installed base. Right now, dozens of classical music labels seem to have lined up behind SACD, and classical music listeners have done the same. So the network effects are very favorable. Besides, with virtually all DVD-A players also playing SACD, and vice versa, the network effects are less important than they were, say for DVD versus DIVX (where only the latter was backward compatible with the former.)

One final thought. Would anyone consider laserdisc to be a failure, just because it had only 2% household penetration? Those 2% enjoyed superior video quality (from thousands of titles) for nearly 20 years. When DVD finally arrived, it offered even better quality, at a lower price. I doubt any laser disc owners felt badly about this.


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