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Report: Blu-ray Disc Sales Impacting DVD

Fri Mar 28, 2008 at 03:00 PM ET
Tags: Disc Sales, Industry Trends, Industry Forecasts (all tags)

Thanks to the demise of HD DVD and increased Blu-ray retail momentum, next-gen disc sales are starting to carve out a bigger slice of the home video pie, a new report suggests.

According to an analysis of Nielsen VideoScan First Alert numbers conducted by Home Media Magazine, Disney's Blu-ray chart-topper 'No Country for Old Men' drew 9.8 percent of its total unit sales from Blu-ray during its first five days in stores.

Faring even better was Fox's 'Hitman,' which saw 12.6 percent of total customers taking home the Blu-ray version during its first five days.

By comparison, high-def percentages during the height of the format war rarely topped 2 to 3 percent of a title's total disc sales. (Even 2007's biggest high-def seller, the HD DVD-only release of 'Transformers,' generated little more than 4 percent of its total unit sales from the next-gen version.)

Adams Media Research analyst Tom Adams cited a newfound sense of confidence among consumers as the main reason for Blu-ray's recent siege on DVD market share, as many of those previously waiting out the format war may now be willing to dip their toes in the Blu waters.

"Before, there was a tendency to play it safe and stick with the standard DVD," Adams said. "But now there's no longer anything to worry about."

Adams also expects to see Blu-ray disc sales continue to boom throughout the rest of calendar year, fueled by increasing penetration of Blu-ray hardware and sales of Sony's Blu-ray-driven PlayStation 3.

See what people are saying about this story in our forums area, or check out other recent discussions.

Related links:
Blu-ray Software Sales Spike [Home Media Magazine]
Discs mentioned in this article: (Click for specs and reviews)
No Country for Old Men (Blu-ray)
Hitman (Blu-ray)
Transformers (2007) (HD DVD)
Earlier on High-Def Digest:
Disc Sales: 'No Country' Pushes Blu-ray Past 9M Mark (Mar 27, 2008)

Genius to Go Blu in Late 2008; Weinstein to Follow?

Thu Mar 20, 2008 at 01:00 PM ET
Tags: Industry Forecasts, Weinstein Co. (all tags)

After sitting out the format war for nearly a year, the CEO of Genius Products says the company is preparing to release its first Blu-ray titles beginning later this year.

In a recent conference call with investors, Genius CEO Trevor Drinkwater stopped short of issuing any specific titles or release dates, but confirmed that the company will begin supporting the Blu-ray format by the end of 2008.

As the home video distributor for the Weinstein Company, Genius had been among the HD DVD camp's most high-profile initial partners. The company released nearly a dozen titles over the first six months of 2006 (including 'Clerks II,' 'Black Christmas' and 'Scary Movie 4'), before abruptly ending their support without any further explanation.

In light of Drinkwater's statements, could Genius/Weinstein finally be ready to release such highly-anticipated hits as '1408,' 'Grindhouse' and the 'Scary Movie' franchise to Blu-ray? High-Def Digest contacted each for comment, but representatives from both companies were unprepared to offer comments on their future high-def plans.

Nevertheless, Genius' plans for a late-2008 Blu-ray launch certainly remain a positive omen for Blu-ray fans. In addition to the Weinstein Co., Genius currently distributes titles on home video for such other prominent indie labels as Tartan Films, ESPN, Sesame Workshop, Here!, World Wrestling Entertainment, and IFC Films.

As always, we'll keep you posted on all future developments in the Genius/Weinstein Co. story as they come to us.

See what people are saying about this story in our forums area, or check out other recent discussions.

Related links:
Missed Guidance Sends Genius Stock Tumbling [Home Media Magazine]
Discs mentioned in this article: (Click for specs and reviews)
Clerks II (HD DVD)
Black Christmas (2006) (HD DVD)
Scary Movie 4 (HD DVD)
Earlier on High-Def Digest:
HD DVD Backer Weinstein Goes MIA; Speculation Mounts (Oct 25, 2007)

Gartner: Blu-ray to Win Format War

Tue Jan 29, 2008 at 03:00 PM ET
Tags: Industry Forecasts (all tags)

Calling Warner's decision to back Blu-ray exclusively "fatal" for the HD DVD format, leading tech research firm Gartner, Inc. is predicting an end to the format war by late 2008.

The comments from Gartner analyst Hiroyuki Shimizu first hit the web Monday in the Gartner Semiconductor DQ Monday Report, a newsletter sent out to clients and journalists.

In the report, Shimizu says that recent HD DVD player price cuts by Toshiba may extend the war through the end of the year, but that ultimately stronger studio support for Blu-ray will win the day.

"Warner's shift from producing in both formats to Blu-ray alone has left HD DVD with just Paramount and Universal as its major Hollywood supporters, both of which account for only 30% of all HD movies," wrote Shimizu.

"Gartner believes that Toshiba's price-cutting may prolong HD DVD's life a little, but the limited line-up of film titles will inflict fatal damage on the format. Gartner expects that, by the end of 2008, Blu-ray will be the winning format in the consumer market, and the war will be over."

See what people are saying about this story in our forums area, or check out other recent discussions.

Related links:
Semiconductor DQ Monday Report, Issue 3 [Gartner]
Earlier on High-Def Digest:
Toshiba Slashes HD DVD Player Prices; Shifts Marketing Focus

BDA: 10 Million Blu-ray Players In 2008

Tue Jan 08, 2008 at 01:50 PM ET
Tags: CES 2008, Industry Forecasts (all tags)

The Blu-ray camp says that by this time next year, the format's installed base could be nearly three times its current size.

That was the headline out of last night's Blu-ray Disc Association press conference at CES.

Still riding high on Warner's announcement last Friday that it would exclusively back Blu-ray, format backers told a packed room of tech reporters that roughly 3.5 million Blu-ray players have now been sold through to consumers, including three million PlayStation 3 consoles and 500,000 standalone Blu-ray players.

The group says things are looking even more rosy for 2008, with research showing that by year's end the format's installed base will have swelled to ten million, with software sales topping the one billion dollar mark.

"It should be a year of very strong, explosive growth," said Danny Kaye, executive vice president of research for 20th Century Fox, who stated that the Blu-ray Disc business should start to see dramatic gains sometime in the middle of this year.

Though format backers stopped short of declaring immediate victory over rival format HD DVD, they said their marketing message would now shift away from the format war and instead focus on convincing mainstream consumers to make the leap to high-def disc.

See what people are saying about this story in our forums area, or check out other recent discussions.

Related links:
Blu-ray software could hit $1 bil in '08 [Hollywood Reporter]

Sony CEO Downplays Format War; Sees "Stalemate"

Fri Nov 09, 2007 at 01:07 PM ET
Tags: Sony, Industry Forecasts (all tags)

An apparently candid assessment of the high-def format war from Sony CEO Howard Stringer shot across the web Friday morning.

Following months of posturing from execs on both sides of the format battle, Stringer's remarks were surprisingly frank, with the CEO describing a current "stalemate" between the Sony-backed Blu-ray format and its rival HD DVD, even pondering a possible loss.

"We were trying to win on the merits, which we were doing for a while, until Paramount changed sides," Stringer said during an appearance at the 92nd Street Y cultural center in Manhattan.

According to published reports, the exec went on to describe a win for either side as mostly a matter of prestige, saying that if HD DVD ultimately won out, it wouldn't have much effect on Sony other than having to change the harddrive for its PlayStation.

"It doesn't mean as much as all that," Stringer is quoted as saying.

The CEO went on to indicate that there was an opportunity of uniting the two camps under one format before he became CEO, and that "I wish I could go back in time, because I heard it was all about saving face."

See what people are saying about this story in our forums area, or check out other recent discussions.

Related links:
Stringer: Content drives digitization [Hollywood Reporter]
Sony CEO Sees 'Stalemate' in Disc Fight [Associated Press]

Blu-ray Disc Sales Lead HD DVD by Nearly 2:1 YTD; Q4 Crucial For HD DVD

Wed Oct 24, 2007 at 01:35 PM ET
Tags: Disc Sales, Industry Forecasts (all tags)

Blu-ray disc sales exceeded those of HD DVD by a wide margin for the third quarter in a row, setting the stage for a crucial Q4 sales showdown.

According to recently released numbers from Home Media Research, sales of Blu-ray discs totaled 2.6 million units from January 1 through Sept 30, versus 1.4 million HD DVD discs sold over the same period. That's a 1.85:1 sales lead for Blu-ray for the first nine months of this year.

A month into the fourth quarter, however, there are some encouraging signs for HD DVD, with analysts predicting a much tighter disc sales race for the crucial holiday shopping season.

First off, there's last week's record-breaking HD DVD-exclusive release of 'Transformers' (which reportedly sold 190,000 units in its first seven days), followed by several upcoming high-profile releases exclusive to the HD DVD format, including 'Shrek the Third' and the newly remastered 'Star Trek: The Original Series - Season One' (an HD DVD/DVD combo disc release that will not be made available as a standalone standard-def DVD).

Of course, the Blu-ray camp has its own high-profile exclusive releases scheduled, sales of which which could very well exceed those of the above-listed HD DVD titles. Among the highly anticipated titles headed to Blu-ray this quarter are 'Spider-Man 3,' 'Pirates of the Caribbean: At World's End' and 'The Simpsons Movie.'

Add hardware to the equation, and it becomes an even muddier picture. With prices dropping for next-gen players on both side of the aisle, there's no telling how many new early adopters will be entering the fray over the next two months, or what effect their hardware purchases will have on overall disc sales.

As always, stay with us for continuing coverage.

See what people are saying about this story in our forums area, or check out other recent discussions.

Related links:
Blu-ray outsells HD-DVD in U.S. for first 9 months [Reuters]
Discs mentioned in this article: (Click for specs and reviews)
Transformers (2007) (HD DVD)
Shrek the Third (HD DVD)
Star Trek: The Original Series - Season One (HD DVD)
Spider-Man 3 (Blu-ray)
Pirates of the Caribbean: At World's End (Blu-ray)
The Simpsons Movie (Blu-ray)
Earlier on High-Def Digest:
'Transformers' HD DVD Smashes First-Week Sales Records

Forrester: Format War is Blu-ray's to Lose

Tue Sep 25, 2007 at 11:05 AM ET
Tags: Industry Forecasts (all tags)

In its third annual report on the state of the next-gen format war, Forrester Research reiterated its long-held belief that Blu-ray will ultimately prevail over HD DVD, though more guardedly than in years past.

The market research firm has issued two previous reports on the high-format war, both predicting that Blu-ray would emerge victorious in its fight with HD DVD for next-gen supremacy.

This year, on the heels of Paramount's announcement that it would support HD DVD exclusively, Forrester now says that although Blu-ray remains in a better position than its rival, the format's backers will need to change strategy or risk losing their edge.

Specifically, Forrester analyst J.P. Gownder says that if Blu-ray fails to offer a viable hardware model at the $250 price point by Christmas 2007 and doesn't employ more aggressive promotional tactics to counter HD DVD's recent momentum, it could open itself to a possible upset defeat at the hands of HD DVD.

Gownder goes on to say that Blu-ray's failure to land a knock-out blow over the past year means that the format war will continue for at least 18 more months.

Established in 1983, independent research firm Forrester analyzes technology change and its impact on business, consumers, and society.

Related links:
The Next-Gen DVD Format War: Still Bloody [Forrester Research]

Report Predicts Blu-ray, HD DVD to Co-Exist

Mon Sep 17, 2007 at 02:11 PM ET
Tags: Industry Forecasts (all tags)

A new report examining the evolution of the high-def market predicts both next-gen disc formats are here to stay, and that most studios are likely to end up supporting both formats.

Released today by UK-based media analysts Screen Digest, the report includes detailed forecasts of consumer sales and revenues in the US and Europe for both new video formats through 2011, with each predicted to establish a viable installed base.

The report goes on to calculate that format-exclusive studios could be missing out on significant revenues, potentially eschewing over $270 million in consumer spending over 2008 alone. With so much at stake, Screen Digest expects several single-format studios to reassess their positions in 2008.

Although Paramount's recent decision to exclusively support HD DVD would seem to undermine the report's prediction, Screen Digest says that the move effectively secured HD DVD's immediate future, and cleared the way for the other studios that currently support one platform only to move to an agnostic position without being perceived as the studio solely responsible for prolonging a format war, or for killing off one of the formats.

"Christmas 2007 is going to be critical for the hi-def video business," said Richard Cooper, Screen Digest Video Analyst. "Both formats will be seeking to secure consumer buy-in to their proposition during the critical holiday season but with so much at stake on both sides we think it is highly unlikely that one format will emerge as the 'winner.'

"Once it becomes clear that both formats are gaining customer acceptance, studios that have chosen to support one format over the other will realize that they are missing out on potential sales and will have to decide how long they can afford to place principle over profit."

"We believe that eventually most will decide to offer their titles on both HD DVD and Blu-ray in order to maximize their returns."

See what people are saying about this story in our forums area, or check out other recent discussions.

Related links:
Screen Digest High-Def Market Report [Press Release]

Exclusive: Spielberg "Big Supporter" of Blu-ray, But Future High-Def Releases Uncertain

Tue Aug 21, 2007 at 11:46 AM ET
Tags: Industry Forecasts, Steven Spielberg (all tags)

Confirming mounting speculation, we've got exclusive word this morning that Steven Spielberg is indeed "a big supporter" of Blu-ray, and that the one-sentence "Spielberg carve out" in yesterday's Paramount/DreamWorks HD DVD announcement was designed to allow the legendary director to release future titles on Blu-ray.

With many of his early blockbusters distributed by Universal Pictures ('E.T.,' 'Jurassic Park' and 'Jaws,' among them), it was once assumed that the combination of Steven Spielberg's classic titles and Universal's exclusive HD DVD support would be one of format's biggest weapons against rival Blu-ray, but a series of developments have led many to speculate that perhaps Spielberg himself has other ideas.

The first hint of trouble for HD DVD came back in February when the HD DVD promo group issued a public apology to Spielberg after listing several of his titles in a "Coming Soon" list that was apparently never approved by the director.

Then, just last month came news that the very first Spielberg high-def title -- a 30th anniversary edition of 'Close Encounters of the Third Kind' -- would be released on Blu-ray, not HD DVD. (That release is due November 13, day and date with the standard-def DVD edition.)

Finally, yesterday's stunner of a Paramount/DreamWorks HD DVD exclusivity press release included a conspicuous one line carve-out, stating that Spielberg's DreamWorks films would be exempt from the terms of the HD DVD exclusivity arrangement, opening the door to the possible future release of more recent Spielberg blockbusters on Blu-ray.

So what's the deal? We put that question to the source for all things Spielberg -- his longtime spokesman and DreamWorks marketing exec Marvin Levy. Speaking exclusively with High-Def Digest, Levy confirmed Spielberg's active support of Blu-ray with the selection of 'Close Encounters' for his next-gen debut.

"It was important to Steven that if any of his films were to be released [first] on high-definition, that it would be a classic," said Levy. "Steven is big supporter of Blu-ray, and chose 'Close Encounters' to be the first of his films on either format."

Spielberg approved the new high-def transfer made for the film, and among the Blu-ray's supplements is a new introduction recorded by the director specifically for the release, as well as a storyboard comparison.

Levy further clarified the Paramount/DreamWorks press release, saying that "...his movies, like 'Saving Private Ryan' and 'War of the Worlds,' are not included in that deal. They are not exclusive to HD DVD, nor [are they] planned for that format at this time.'"

Levy went on emphasize that beyond 'Close Encounters,' Spielberg has no other films in the high-def pipeline on either format. "At this moment, there are no plans for something further [on either format]. Anything in the future will be decided on a title-by-title basis. There certainly won't be more titles in 2007."

See what people are saying about this story in our forums area, or check out other recent discussions.

Discs mentioned in this article: (Click for specs and reviews)
Close Encounters of the Third Kind: 30th Anniversary Edition (Blu-ray)
Earlier on High-Def Digest:
Spielberg to Hit High-Def With 'Close Encounters' (Jul 26, 2007)
HD DVD Promotions Group to Spielberg Fans: Whoops! (Feb 05, 2007)

Fox Set to Renew Blu-ray Commitment, Announce Future Release Plans

Mon Aug 20, 2007 at 03:39 PM ET
Tags: Disc Announcements, Industry Forecasts, Fox, MGM (all tags)

After months of silence, Fox Home Entertainment is planning to issue an announcement later today renewing its support for the Blu-ray format, and outlining the studio's upcoming release plans.

The move comes after this morning's shocking revelation that Paramount and DreamWorks have switched allegiances exclusively to rival HD DVD, news which has left those on all sides of the format war blind-sided.

We've just received official confirmation from Fox today that in response to Paramount's announcement, they are currently fast-tracking a press release reiterating their exclusive support for Blu-ray, as well as providing long-awaited details on their future release plans.

Though Fox (who also distributes MGM titles) was one of the early and most vocal major studio backers of Blu-ray, the studio has largely stepped out of the high-def sweepstakes for the past several months. Neither Fox nor MGM has released nor announced a single Blu-ray title on the format since 'Hoosiers' in early March. They also cancelled a huge slate of planned winter high-def releases, including such hits as 'Mr. & Mrs. Smith,' 'From Hell' and 'Me, Myself & Irene,' which have yet to be rescheduled.

We'll certainly keep you posted as soon as Fox's press release is unveiled in the coming hours. Watch this space!

See what people are saying about this story in our forums area, or check out other recent discussions.

Earlier on High-Def Digest:
Breaking: More Info in on Paramount's Move to HD DVD (Aug 20, 2007)


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