
Are we assisting to the birth of the real battle for the next generation of movies for our home theaters? With the announcement by Apple of the availability of movies from their itune library and the release this fall of the Zune from Microsoft, we have the right to believe so. Other big players, like Amazon, are already going after the movie downloading market which seems to be a very strong social trend. Blu-ray and HD DVD is not a social trend. It is something built from scratch by audio-video manufacturers. Those formats are also for big technology fans with a lot of money in their pockets.

Here are the top 5 reasons why we think movie downloading could be the big winner in this battle:
1. Budget
Consumer’s budget is very limited. Movie downloading is a lot cheaper and consumers are already used to it with music. To be able to watch your first Blu-ray or HD DVD movie, you must buy a high definition TV and spend $2000, a Blu-ray or HD DVD player ($500-$1000), and eventually a HDMI cable ($50). Only after that, you can buy your first Blu-ray or HD DVD movie at $20 or $35, if they are available.
On the other end, movie downloading is done directly on the computer for less than $15. And to be able to easily watch it on your standard or high definition TV, you will buy an itv from Apple or an equivalent for a few hundred dollars.
2. Consumer’s real interest is in user-friendliness and social acceptance
Consumers do not have a strong interest in high definition movies. In fact, most of us just can’t see the difference between DVD resolution and Blu-ray or HD DVD resolution. The ease of use of the downloading method combined with a strong social acceptance opens the path for movie downloading. Teenagers are in the driving seat and they said that music downloading is cool. They will probably say the same thing for movies. We must not forget that movie downloading has been there for a long time. We are just getting a legal option and a better quality.