Is this finally the end of the DVD? Ever since streaming became the preferred means of accessing video (well, it will be, once it reaches critical mass), people have been predicting the end of DVD sales and with it the decline of Netflix
Cry me a stream
Yet the fears never materialized. Even as Netflix added streaming video to its repertoire (heresy!), DVD rentals still rose. Coinstar
But Netflix is planning for the next stage by bifurcating its revenue streams, with separate plans for DVDs and streaming. Once the DVD is gone, viewers won't complain about paying for streaming -- though the kvetching is fairly loud now.
Now we're seeing the end game, though. I'm referring, of course, to the bombshell that Dolby Labs
For all the complaints tossed Microsoft's way over the bloat in its OS, carving out the bit that improves the audio experience for users hardly seems smart.
Crazy like a fox?
Or maybe it is. The DVD player on PCs is no longer a heavily used component. Even mundane system updates are achieved through downloads rather than by sliding a disc into the tray. Moreover, media itself is being encoded with Dolby's technology at the front end. Microsoft may look at the iPad's absence of a DVD player -- and the huge success (and profits) Apple has
Of course, maybe it's just a negotiating tactic, too. As the largest buyer of Dolby licenses, it's no small chunk of change it pays for the privilege for having Dolby codecs embedded in the OS. Putting those playback codecs elsewhere, such as in the computers themselves, can save itself some money -- unless it can negotiate lower licensing fees.
I'm pretty sure Dolby can survive this brave new world. But there's no guarantee that Dell
Can you hear me now?
An investment in Dolby at the moment might be a dicey proposition because of the many unknowns at play, but regardless of how the Windows 8 drama actually plays out, it looks like we've seen the first real sign that the DVD is on its last legs. That sound you hear is a dirge playing its demise.