Well, jdaniel - your theory sounds quite clever, but there's one small problem with it:
The companies that are the driving force behind SACD and DVD-A (Sony/Philips/Warner/EMI/Universal/BMG etc.) are all still firmly entrenched in what you call "1980's pre-internet thinking."
It shows in their distribution model, it shows in their profit/loss model, and it clearly shows in their total inability to understand how the Internet has changed music and music distribution.
So here you are accusing the consumers of antiquated thinking, but it's the companies making hi-rez possible that are engaged in the antiquated thinking; they still think that mass market = life, not the consumers.
Contrary to some others here who are waiting for a "clear winner" in the hi-rez format war, I don't think either will "win." It's entirely likely that both will be abandoned by the majors. EMI has already said that it sees little movement in SACDs and none in DVD-As.
Ultimately, the Niche Market as you describe it will prevail - there is a demand for hi-rez digital, and it will be filled by someone. It may not be the companies everyone here wants it to be though.
The companies that are the driving force behind SACD and DVD-A (Sony/Philips/Warner/EMI/Universal/BMG etc.) are all still firmly entrenched in what you call "1980's pre-internet thinking."
It shows in their distribution model, it shows in their profit/loss model, and it clearly shows in their total inability to understand how the Internet has changed music and music distribution.
So here you are accusing the consumers of antiquated thinking, but it's the companies making hi-rez possible that are engaged in the antiquated thinking; they still think that mass market = life, not the consumers.
Contrary to some others here who are waiting for a "clear winner" in the hi-rez format war, I don't think either will "win." It's entirely likely that both will be abandoned by the majors. EMI has already said that it sees little movement in SACDs and none in DVD-As.
Ultimately, the Niche Market as you describe it will prevail - there is a demand for hi-rez digital, and it will be filled by someone. It may not be the companies everyone here wants it to be though.