Thursday 25 October 2018

Deserting island discs


It used to be that you knew you were getting older when policemen appeared to be getting younger. Now it is technology which might still seem new but has aged incredibly quickly. Over my career in tech PR I've seen technologies rise, arc and disappear in what seems like the blink of an eye: as part of the Philips PR machine in the '90s and Noughties, I was involved in launching several consumer electronics formats, including the DVD, the recordable CD, the recordable DVD, the Digital Compact Cassette, Digital VHS, CD-i and, latterly, Blu-ray Disc. Most, it has to be said, have either been superseded or didn’t survive infancy, even though their patents - lucrative in some cases - have been absorbed into the revenue streams of the companies who created them.

Today, Philips no longer invests in consumer electronics, preferring to be a healthtech concern, presumably because the margins on capital equipment like CT scanners for hospitals far outstrip the meagre profits to be made on a TV (for such a major purchase, you'd be amazed how little the manufacturer makes on it...), although brand licensing has ensured the Philips name has remained in the home entertainment space. The reality, however, is that, 11 years after Apple introduced the iPhone, the smartphone has largely replaced TVs, video players and hifi systems amongst young consumers. Look at Apple’s marketing of its latest iPhone, even making a virtue of bigger screens and better speakers purely to appeal to those who prefer to watch movies on something barely bigger than an old fashioned cheque book.



Given that streaming via platforms like Netflix, Amazon and iTunes, plus broadcasters’ on-demand and catch-up services, has become as commonplace today as terrestrial TV and Blockbuster video rentals were 30 years ago, it’s not surprising to, this week, see news from the John Lewis department store chain that it is drawing the curtain down on the DVD player, having seen a 40% drop in player sales over the last year. While this isn’t necessarily a vital-signs indication of the health of DVD itself, the revelation - contained in the 2018 John Lewis & Partners Retail Report - is a sign that one piece of technology beneath the living room television is in decline. What this doesn’t say is that sales of Blu-ray Disc players - the ultra-high definition disc format that was developed (by a consortium of technology companies including ‘usual suspects’ like Philips and Sony) largely to succeed DVD - are still relatively healthy, even if, like most ‘high-volume electronics’ devices, price erosion has brought down the cost of a Blu-ray player from around £1000 in 2002 to as low as £70 for a basic box today.

DVD does now date back to what is a lifetime in technology: when I started working for Philips at the beginning of 1995 there was already, in the finest traditions of the consumer electronics industry, a battle raging between competing technologies to be considered the 'standard' for a CD-sized disc that could store entire films in one go. In the blue corner was Philips and Sony with its Multimedia Compact Disc (MMCD) format. In the red corner, a collection of tech companies like Toshiba, Matsushita, Hitachi, JVC, Pioneer and Thomson who, along with their Hollywood buddy Time Warner (i.e. Warner Bros) were backing Super Density Disc (SD). While industry observers and trade media hacks lofted their eyes skywards at the prospect of another Betamax-v-VHS battle, a round of the sort of shuttle diplomacy normally applied to preventing actual wars brought peace to the world of digital video and, at a press conference at the IFA trade fair in Berlin in August 1995, declared their eternal love for each other. DVD was born.

The news that John Lewis is now, 23 years on, dropping DVD players from its shelves is no more than a reflection of its own stocking strategy, says Gill Hind of Enders Analysis, who points out that it's as much about the retailer's desire to keep its shelves full of the latest innovations which carry higher sticker prices and better margins. Beyond the headlines, the DVD itself, on the other hand, soldiers on, just.

"I think the bigger surprise is just how resilient the format continues to be," says leading home entertainment journalist Steve May. "Sales data from the British Association for Screen Entertainment, covering the first six months of 2018, reveals that DVD accounted for 64.7 per cent of video sales. Digital formats trailed at 22.4 per cent, with Blu-ray Disc following behind with 12.9 per cent. Streaming services "may be picking up subscribers at a rate of knots" says Steve, but those who want the best in picture and sound quality are sticking with the physical format of Blu-ray Disc. And the innovation cycle in Blu-ray goes on: “Blu-ray players replaced dedicated DVD players in terms of value some time ago," he adds, "just as the latest Ultra High Definition Blu-ray Disc players are now ousting regular Blu-ray decks.”

While the higher-end quality of Blu-ray remains popular with videophiles, DVD is hanging on, probably due to the combination of convenience, good picture quality (when we demonstrated DVD versus VHS it was the difference between a clean and dirty window) and, above all, dirt-cheap prices. No surprise, then, that one in two DVDs are sold as point-of-sale impulse buys at supermarkets, while 10% of DVDs get snapped up at supposedly 'non-traditional' retailers, such as garden centres and petrol stations, according to the British Association for Screen Entertainment. While streaming has clearly become the dominant vehicle for watching movies at home (accounting for more than four-fifths of the £2.7 billion UK video market last year) Steve May maintains that “there is plenty of life still in physical media”. For example, Christopher Nolan's Dunkirk sold 640,000 copies on DVD and Blu-ray combined, while last year’s most popular film release - Disney's Beauty And The Beast - sold 1.5 million copies across both 'physical' and 'digital' formats.

Standalone DVD players may be going out of fashion but “backwards compatibility” in the Blu-ray hardware standard has meant that Blu-ray players can still play all those hundreds of DVDs currently piling up in living room cupboards probably only a few feet from the TV. Which means that disc libraries will remain for some time yet. The question is, what these ageing, dust-gathering DVDs will look like. Many in my own library were bought at the time when they were first-generation transfers. Home video companies have been very canny in re-releasing titles as formats have been updated (I actually own four different copies of Heat and have lost track of the versions of The Godfather in my collection...). At the same time, TV sets themselves have evolved. A year after the DVD was born, Philips introduced the very first flat TV, a 42-inch gas plasma number costing 30,000 deutschemarks, roughly £13,000 in today's money. Now, you can buy a 43-inch LCD TV for less than £370. It's not an entirely accurate comparison, however. That first flat TV was, frankly, rubbish from a picture quality point of view, but that didn't stop Philips selling every single one they made, often to achingly-cool advertising agencies (and one particular radio DJ...) wanting to be the first to own a TV set you could hang on the wall like a painting.

Television and video formats have often leapfrogged each other, much like Trigger's broom in Only Fools And Horses (17 new heads and 14 new handles in 20 years...), but today there is a narrowing of technologies. With broadcasters and streaming services offering premium content like football and film channels with 4K quality and, at some point in the not-too distant future, 8K resolution, it's arguable that the optical disc that has lingered on since the CD (or, even earlier, LaserDisc) will be discarded to museums. I'll admit, as I spend an increasing amount of time on planes, having a library of downloaded movies on my iPad, with its Retina screen and Bluetooth headphones, is a convenient way of catching up with films and TV box sets. But nothing can beat the experience of watching at home on a big screen TV (70-inch is now the new normal, according to John Lewis, compared to only 36-inch in 2010), and with Blu-ray continuing to set the standard, the spirit of the DVD lives on through its successor. And you still have to get out of your seat to put it in the player, but then that was always part of the fun, wasn't it?

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