There's a great book called the Innovator's Dilemma that talks about why new technologies cause great companies to fail. The principle reason of failure is that businesses define their business incorrectly.
For example, car companies, airplane manufacturers and shipyards are not actually in the “car”, “airplane” or “ship building” businesses, but instead, they are in the transportation business. To be sure, they are in different types of transportation, but none the less, most people would never buy a car if they could simply use teleporters (or any other better means of moving themselves from point A to point B).
Likewise, I'm not interested in buying BlueRay or HD-DVDs. In fact, I don't even like buying DVDs because they take up space, I have to manage them and I have to run to my equipment area every time I want to change a DVD. All I care about is being able to enjoy a movie on my 55” plasma. I don't care about the techonology that will deliver it to me.
Today, Apple announced a product (currently dubbed iTV) that would allow me to watch a movie from my PC on my TV. Couple that with iTune's new ability to sell movies and bam, I have what I need for movies. Now before you tell me that Windows Media Center has been able to do this along with the media center extension, I'll tell you that Window Media Center has been a major failure, because they viewed the problem incorrectly (not to mention, it provided no means of me purchasing movies on my PC). The new Apple iTV device is a $300 device that sits in my equipment room and I never have to see it or touch it. Even better, I never have to buy another DVD, change out DVDs or buy a DVD case. So lets see, will my next device be a BlueRay DVD player, an HD-DVD player or an iTV? I think you already know my answer.
The great part about the Apple solution is that when high-definition movies become more common-place, all Apple needs to do is increase the resolution of their movies. No more new devices!