High definition TVs, HDTV Service, DVD-Recorders, DVRs, Digital Music, iPod... these are some of the hottest consumer technology products and services available today. Not only are these products & services hot they are not cheap. Consumer electronics companies are being forced to really compete for every dollar these days... and services like Netflix, TiVo, and Rhapsody (Real's online music subscription business) will run someone around $43 dollars a month or $516 dollars per year. It now looks like consumers are ready to dive into what will be another expensive habit... DVD recording. According to a new report DVD-recorder sales are set to soar. Might as well throw in another $5 - $10 per month for blank DVDs.
I wonder how consumers will respond when they upgrade to HDTV and realize that all these other products and services don't work with HDTV. Out with the old TiVo, the DVD burner won't burn at HDTV quality, currently there is no HD-DVD player so you will have to suffer at 480p resolution, etc. The entire "entertainment stack" will need to be replaced and upgraded, which will give CE companies a few golden years to reap the benefits. I only hope that the average consumer doesn't go out and blow all their cash on products and services that will be obsolete before they know it.
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