But is it really? Toshiba announced that they would cease production of HD-DVD players and recorders immediately, so Blu-ray is the champion of the next generation high definition standard. Scott Anthony, in this article, raises a good point about how Sony may have won a losing battle. “It’s entirely possible that the high-end DVD market could be relegated to niche status as companies like Apple, Comcast, Netflix, Cisco, Motorola and many others race to improve the ability to download movies over the Internet” (¶ 10). Was Sony really fighting its last battle against Matsushita all over again, only to find out in the next few years, that while they are the only hi-def DVD format out there, their market share of the entire movie industry is smaller than Apple?

Disruptive technologies have a way of wreaking havoc on the corporate landscape. We’re not there yet, but fiber to the house and other improvements in increasing the bandwidth of Internet to homes is going to make going out to the video store something you tell your grandkids about while laughing. In my area, Hollywood is already admitting defeat and closing stores in less profitable areas. Netflix was the first entrant in the video rental market with a disruptive technology, and Blockbuster jumped on the bandwagon and have done a good job of leveraging their existing distribution infrastructure well by offering to accept mailed movies at the store and giving you a free movie. This keeps them in the game against Netflix.

Only time will tell, but did Sony really win, or did Toshiba win by reducing the amount of future losses it would have incurred?

— Anthony, S. (2008, February 19). Sony: Winning the DVD Battle But Losing the Innovation War? Harvard Business. http://discussionleader.hbsp.com/anthony/2008/02/sony_winning_the_wrong_war.html.