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Sony, the company that pioneered the VCR and later propelled DVD into the forefront of home entertainment, has seen lackluster results for its BluRay high definition discs and players. Though Sony hit everything out of the ballpark with its newest disc format, timing proved to be poor.

HD DVD and BluRay

At first there were two. Sony and Toshiba battled in the high definition disc market with Sony backing its own BluRay and Toshiba forcing HD DVD. Sony seemingly won the first round with ease, bundling the new disc format with its popular Sony PS3 game system which put the BluRay player in homes that likely wouldn’t have purchased a standalone player. By grabbing so much marketshare early, Sony was able to grab more of the market.

Why BluRay is a tough sell

Sony’s DVD is the main reason BluRay can’t quite compete. Though BluRay players have plummeted from $500 to less than $100 in just a few years, consumers aren’t yet willing to trade in their DVD players for BluRay. Currently, 92 million households own a DVD player, and nearly 70% have more than one DVD player. Think portables, laptops and even cars which can all play DVDs. Only a few laptops and other “peripheral” players can play BluRay. Just over 11% of households have both BluRay and DVD, however few are standalone and most are through the ownership of a single Playstation 3 device.

Recession Bites

Though HDTV sales remain strong, and could certainly be made better with the addition of a high definition movie player, consumers are broke. Many shoppers are questioning whether better sound and video are worth the extra 50-75% that BluRay discs cost. Clearly, they’re not willing to spend, and it could send BluRay into obscurity.

Streaming Video

Unfortunately for Sony, the next generation in home video is developing while BluRay stagnates. Many households that own HDTVs are also connected through digital cable and services like Netflix which allow for the instant streaming of popular movies straight to the TV and in high definition without driving to a rental store or buying the movie outright. Bandwith costs are also getting less expensive as technology thrives, allowing for lower priced “rentals” and instant streaming.

BluRay is Dead

Like VCRs, cassette tapes, and 8-tracks, the BluRay player will soon be the next storage product to expire. Live streaming is taking over physical media, and the current recession prohibits companies like Sony to even think about getting their research costs back. Goodbye discs, hello bits and bytes.

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