Yes, you'd need an upscaling player to play in HD, but it'd still work in normal DVD players. The studio's could stop making normal DVD's and most customers wouldn't have any idea aside from a single firmware update.
So your theory is that they're going to stop producing regular DVDs and move onto this new, more expensive to make DVD?
Yes, you can. I've gotten several firmware updates from Toshiba for my HD-DVD players, I just popped the disc in, it updated the firmware, and I went back about my business.
This is different. We're talking about reading data off the disc at all. If it needs a firmware update to read the disc, then it needs a firmware update to read the firmware update that's on the disc. Hence the problem is... reading the disc, which not all DVD players can do.
Firmware updates are incredibly small, they could easily pack all of them onto a single disc and maybe take up 1% of the space. Plus, a lot of the firmware will be the same, since all DVD players use the exact same decoding algorithm(and since these new discs use the same encoding as normal DVD's, that wouldn't even have to be touched). So now, they'd only have to change the maybe 20% of the firmware that'd be unique to each manufacturer, so you're looking at an even smaller amount of data to change. You'd only have to fit what, 10 brands worth of updates to hit 99% of the DVD players out there? 10x a very small file is only a small file, still nothing to be concerned with.
It's not a question of space, it's a question of being able to read the file.
They could fit it all onto one disc, or they could just package two discs with it. That would be more confusing for the dumber customers, but I'm sure the literate ones could figure it out.
It would have to be on a separate, 5 gig disc. Otherwise players couldn't read the actual disc to get the firmware update. Now... with every movie you sell, you need to toss in a second disc for the firmware update.
There wouldn't be any cut off for people who only want SD movies, since it'd still work just fine.
Data doesn't work that way. It doesn't matter what video codec you use. Every DVD player has to be able to actually READ the data off of the disc. If it's a question of outputting the video/audio, yes, you are correct. However the problem is that these DVD players weren't built to read off of these discs.
Even cutting their profits in half(and I'm over exaggerating about that loss), they'd still be making far more money off of this new format than with blu-rays.
If studios were producing their content exclusive to blu-ray and skipping DVD releases, you might have a point, but last I checked even Sony still prints DVDs. Blu-rays may not be as profitable as DVDs but they aren't being sold instead of DVDs last I checked, rather in addition to.
On top of all this, in exchange for added sales of a few who might buy these DVD 2.0s as opposed to upgrading to Blu-ray, you're tossing out everyone with an un-upgradable DVD player, or a DVD player where the firmware isn't going to be updated to run these discs. Every one of these companies will have to make all their own firmware updates for every single DVD player model if they can even be upgraded, are they going to do this? Outside of companies actually invested in DVD 2.0, who would even want to? They sell hardware, not services. They'd probably prefer you go ahead and buy their new 2.0 capable model.
It's a clusterfuck of epic proportions. I'm sure Microsoft would love it though so they can save the day with digital downloads.