Question 1: In the case study Blu-ray versus HD-DVD: A standards battle in high-definition video (Schilling, 2013,pp 65-66), what factors do you think influenced whether (1) consumers, (2) retailers, and (3) movie producers supported Blu-ray versus HD-DVD? Discuss and justify your answer using the theory behind the selection of dominant designs.

Intro; In the early 2000’s Toshiba and Sony, two tech giants went head to head to provide homes with the next generation of high definition video. Toshiba’s new technology was called HD-DVD and was compatible with the old technology, DVD. Sony released Blu-Ray which required a new playing system altogether. After both companies had secured major contracts in the entertainment industry there was one moment that helped Sony to become the dominant product. Time Warner, formerly in alliance with Toshiba, switched to Sony prompting other undecided companies, including Walmart and Netflix, to follow suite. After this the tech war was effectively over and Toshiba ceased production of HD-DVD’s and components. Although at the same time an alternative product for watching movies was growing; online streaming. This provided a similar experience, depending on how fast the internet was in the area, but at a cheaper cost of being digital media.

Consumers; in the fight for supremacy the early adopters of the technology are very influential because they will be more likely to have researched about which product was better based on technical factors, giving an indication to the followers which format is ‘better’. Another factor to help customers choose is the availability of complementary goods. Both companies secured contracts with major film makers, Toshiba initially secured Time Warner, as well as Paramount Pictures, Universal Pictures and Dreamworks Animation. HD-DVD was also an option on Microsoft’s Xbox 1. On the flip side Sony