Terre Haute plant has case of the Blus (IN)

[KRIEG1986]

From the Indy Star; Front page of the Business section.

A good read, if you're interested.

Terre Haute plant has case of the Blus

"The great digital video disc war - Blu-ray vs. High Definition DVD - took a major turn this week, one that may cause problems in Indiana.

On Monday giant movie studios Paramount Pictures and DreamWorks Animation announced they would stop using Blu-ray discs produced by Sony at its big Terre Haute plant. The momentum before that announcement favored Blu-ray discs, which have 40 percent more storage than HD-DVDs. And right now far more machines play Blu-ray discs, thanks to the Sony PlayStation 3.

What's at stake for Indiana? Sony's 1,200 employee Terre Haute plant just got an $81 million upgrade to make Blu-ray discs. If HD DVD prevails, many jobs are in jeopardy.

It wouldn't be the first time Sony lost a bet on technology. Remember Betamax, the smaller and clearer videotape that Sony killed when consumers chose the longer-playing VHS format?

Most studios produce DVD version of their movies in both formats. Blu-ray got a boost in June when Blockbuster said it would stock only those discs. In a test in 250 stores, the movie rental chain found consumers chose Blu-ray 70 percent of the time. When Paramount released "300" on DVD, the Blu-ray version outsold the HD version 2-to-1, said Richard Doherty, research director for The Envisioneering Group in Seaford, N.Y.

Paramount's decision to throw in with HD DVD slows Blu-ray's momentum and marks a big change from the last big format battle, Doherty said.

"This time it's been the Hollywood jet-set club that's playing chess, and consumers feel like they're pawns in the game," he said. "Consumers are confused because they don't know which format will survive."

Sony killed off Betamax when it became clear consumers preferred VHS. Paramount's decision to ignore Blu-ray's popularity means consumers hold little sway this time.

That's bad for Terre Haute."

Written by John Ketzenberger