Thursday, April 17, 2008

SSO: deference to the market

http://www.uhlawblog.com/admin/trackback/47744

The market sometimes is not shielded from influences of major players in SSOs. In some markets for high-tech products, SSOs(major players) and the markets are closely related in the initial stage of product development.
In case of next-generation DVD format, Blue lay and HD-DVD formed SSOs and 'created' the market for the next-generation DVD player. (I doubt that there were some initiative from general public to buy new, expensive DVD player.)'Deference to the market' seemed to be impossible in DVD case, because two different products were not bought by a large number of customers. High price seemed to be a reason why new DVD players were not so popular.
SSOs and their major players might argue that they TRIED to defer to the market by releasing new products. In fact, they controlled the market choice. DVD format battle seemed to be ended when Warner Bros, a big player as well as an influential client, stood by Blue-Ray side.
Also, they might argue that battles between SSOs and their compromise would be more efficient than the deference to the market. (After the battle is over, almost all manufacturers and content providers invest and develop one surviving format.)

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