Blu-ray and the case of the “preferred” physical disc

It seems not long ago Blu-ray won the HD disc battle and became the one and only high-def physical format for consuming movies.  But even as that happened, the “tech bubble crowd” (if you tweet about the fail-whale, you’re in it) wondered whether it really mattered: how would a physical medium hold up in light of digital downloads and instant streaming?  It looks like concerns about the viability of a physical medium are highly overblown by the tech bubble crowd.  Physical media is still preferred, according to NPD Group research.

As F.Y.E., Virgin Megastores, and other brick-and-mortar chains are shutting down, more people are buying DVDs than streaming and downloading content.  In fact, when asked about their home entertainment purchases over the past three months, 48% of respondents said they bought a DVD or Blu-ray Disc – according to the NPD survey.  If that doesn’t elicit a scratching-of-the-head response, get this: only 2% of respondents said they downloaded a movie or TV episode, and 2% said they digitally rented a movie or TV show.  These numbers and the fact that physical media is becoming more difficult to find (as evidenced by the closure of many brick-and-mortar stores), actually make sense: the retail space for physical media is consolidating, especially in the current economy.  But what about streaming content?

Sadly, it looks like sites such as Hulu.com and ABC.com, about which I expressed some dissatisfaction yesterday, didn’t make the cut into the NPD study.  And that’s a shame: the beauty of web-based distribution is not in downloading, but in streaming.  Downloading – if renting or buying – is the wrong way to do it.  All downloads I know of (iTunes, anyone) are encumbered by some form of DRM and actually need to work some “expiration magic” if the rented content is set to expire upon a particular time period or amount of playing.  Streaming, on the other hand, is the correct format for digital delivery of online video content: it’s quick (get in by going to hulu.com, get out by closing the browser window) and convenient (it isn’t locked to your iTunes collection on your desktop PC).  It can be streamed to a netbook, to a laptop, to a desktop, or to a set-top box (of course, if Boxee brought hulu back).  And looking into the future (if I may), streaming content will be widely available on mobile devices like the iPhone and the Palm Pre – when the former gets Adobe Flash support, that is.

Physical formats like Blu-ray are simply no longer necessary: having a physical disk is no longer a convenience, but a hassle.  You either have it with you or you don’t.  And if you don’t, your SOL.  Plus these things are subject to scratches, breaks, and other forms of damage.  Oh, and did I mention they need a $250+ investment in the form of a big, bulky, and power-hungry Blu-ray player?  And while Netfilx expects that “DVD mail shipments overall should grow over the next five to 10 years,” they are also in the streaming game with the Netflix Rolu player.  I wonder why that is (hint: because they know that the days of physical media are numbered).  As for me, I’ll stick to streaming.  I recommend you do as well.

Posted in ABC, Apple TV, Blu-ray, Entertainment, Hulu, Marketing, Netflix, iPhone, iTunes