Samsung said Monday that it doesn?t have immediate plans to massively inject fresh capital into its five-year Blu-ray business.
"Since 2005, we have been releasing Blu-ray products but we are not considering sharpening the business for the time being despite its success in the format war," a Samsung spokesperson said in an interview with Korean Times, adding that his company is still performing extensive market researches for further strategies.
"With the format war ending earlier than expected, Blu-ray manufacturers are unlikely to increase their investment in parts suppliers due to fears over lower profits," another Samsung official said, citing a smaller market size.
Samsung "rival" LG Electronics has been also active in the Blu-ray business. The company showcased its first Blu-ray players at CES in Las Vegas in 2004. However, the company's first HD player was a Blu-ray/HD DVD hybrid, after the a cross-license contract with Toshiba in 2006.
But today LG seems to keep a wait-and-see attitude toward the Blu-ray sector as our company isn?t quite sure about the prospects.
"Globally, the potential market for Blu-ray discs is very lucrative. Consumers will spend $1.1 billion on HD discs this year compared with some $300 million last year. However, the business is still in its infancy due to high prices and the rapid penetration of the high-speed Internet," an LG official said on Monday.
Both South Korean tech giants are based in a country that is considered to be a test-bed for the success of high tech gadgets, while it also one of the world?s most Internet-savvy countries with some 40 million of the population ― 46 million ― having access to the Internet.
Some critics say the wider penetration of IPTVs may hamper the future of the Blu-ray business as IPTVs enable television viewers to watch high-definition programs and use high-speed Internet, while Blu-ray products charge extra for HD-level access.
However, with the current situation in the broadband internet connections, it is going to be a long time before downloading a 30GB movie is competitive with a physical disc. Try sending someone a 12GB presentation some time..