[2.17] What effect will D-VHS have on DVD?

D-VHS (the D stands for data or digital), the digital successor to VHS tape, was first announced in 1995 but didn't appear outside of Japan until 1998. At the time D-VHS decks could only record pre-encoded bit streams such as from a digital satellite receiver. In 2001 the D-Theater format was released, which standardized MPEG compression and copy protection, paving the way for the release of pre-recorded movies on D-VHS tape in 2002. D-Theater became the first format for viable commercial distribution of movies in high-definition. Quality is excellent, with a resolution of 1280x720p (2.7 times NTSC DVD, 2.2 times PAL DVD) or 1920x1080i (roughly 4 times NTSC DVD, 3.5 times PAL DVD). However, consumers have shown a distinct preference for discs instead of tapes, so D-VHS will never become more than a niche product. Since HD-DVD began to arrive in 2003 (see 3.13), consumers other than early adopters and HD aficionados are choosing to wait for the next generation of DVD for pre-recorded movies and for home recording of HD programs.