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Both formats will ultimately lose.

While the two format fight to be the standard for high def the price of hard drive space and bandwidth will continue to fall. Each format will become a niche with not much appeal to the general market place because of confusion by the general consumer. Ultimately Apple will use it's AppleTV to provide a service that will do to the two formats what Apple did to the market for mp3 players.

Hardware is a commodity which is what the two format war is all about. They are fighting for market share over a commodity hardware.

Service providers such as Apple and maybe Netflix, with a combination of hardware, software, online service and ease of use, will rule tomorrow.

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