BLU-RAY NEWS TAGGED "BLU-CON 2010"Receive Blu-ray News via RSS

Blu-ray Isn't Just for Movies? Blu-Con 2010 Ends by Highlighting Blu-ray Music

Wed Nov 10, 2010 at 03:45 PM ET
Tags: Michael S. Palmer, Industry Trends, Blu-Con 2010 (all tags)

by Michael S. Palmer

I feel like Captain Willard reaching the end of the river. It's been a long arduous journey into the heart of darkness exploring Blu-Con 2010. But as I did last week, we have all mercifully reached the final panel of discussion: "Blu-ray and Music: Storytelling Through Sound." Featured on this panel were two major label music executives, Adam Sosinsky (Sony) and Jim Belcher (Universal), as well as an independent who focuses on the niche audiophile market, Mark Walderp (AIX Records).

For a brief moment I thought this panel was going to focus on how sound is half the cinematic experience and how Blu-ray offers the best soundtracks available. I was half right. It was an odd panel. So much less enthusiastic than everything else in the day, it could've almost been called "Hey, Don't Forget About Us. Blu-rays Can Play Music Too!"

The major label executives seemed unsure about what to do with Blu-ray. Concert footage and CD bonus materials were presented, and to be sure, they looked and sounded great. But after years of failing profits, the major labels seemed afraid of innovation. Leaving them unable to make Blu-rays or concert films for only their top acts. And then, due to the complicated nature of production and soaring egos of successful artists, they're unable to coordinate the release of these concert Blu-rays until months after the artist is no longer on tour. Essentially, the music department of these studio-owned conglomerates wish they had the marketing and financing muscle of their movie-making siblings.

Conversely, the independent and entrepreneurial Mark Waldrep with his low overhead made six Blu-rays this summer over a few days and currently has released the second best selling 3D Blu-ray. Granted, there aren't many 3D Blu-rays out yet and audiophile music recordings are admittedly niche. Still, it was a striking comparison. An excited and bold independent using the latest technology to expand business. And the old giants sad Blu-ray isn't a magic bullet that'll restore the youth and mega-profits of days gone by.


Universal and Sony do have some fun Blu-rays coming out soon. Universal released 'The Police: Certifiable' and Sony gave us a sneak peak at an upcoming 3 CD, 3 Blu-ray Bruce Springsteen boxed set entitled 'The Promise: The Darkness On The Edge of Town Story'. For concert films, the Blu-ray experience is, in most cases, a better experience than actually going to the concert. The audio will be cleaner and less distorted by sheer decibel levels. And of course the HD video puts you all over the concert venue, from right up on stage to deep within the roaring crowd.

AIX releases seem to be a hybrid between a "concert" and a "traditional album recording". Meaning, they produce these events by putting musicians in one room together to perform classical, jazz, and folk selections (I'm sure there's much more to this; we had a limited sampling) in single takes. Mr. Waldrep said Blu-ray's 7.1 audio channels capabilities means that listeners will be getting a better experience than actually being in the room with the musicians. Further, because there's no crowd at these "live" recordings, it's not a concert film and, according to Mr. Walderp, therefore much more repeatable. It's simply an album, which happens to include video.

Blu-ray as "a spinning disc" is the best on the market, and perfect for audiophiles because it requires no tampering or processing to make it sound right. It's a full resolution recording where each instrument and vocalization sounds exactly as it does in the real world. And though AIX's releases include footage of the musicians' performances, music on Blu-ray doesn't necessarily need to be concert-esc. Any album could be mixed in multichannel sound with still images or some kind of B-roll displayed over it. Universal, for instance, has re-mastered and is re-releasing Tom Petty and the Heartbreakers' 'Damn the Torpedos'.

What do you think, dear readers? Do any of you own any concert films, or repeatedly watch concert films? Are you looking forward to lossless multichannel music releases? Or are CDs and MP3s still good enough? Hit up the forums and let us know.

And with our Blu-Con 2010 coverage coming to a close, I'll leave you with what ended the day at the Beverly Hilton. See you next year!


"Many of you haven't voted yet on this election day, but consumers have already voted with their wallets, and the winner is Blu-ray." – Craig Kornblau (President, Universal Home Entertainment)

A little corny? Yes, but I'm all for a world where everyone gets to enjoy Blu-ray as much a I do.

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


HDD's own Josh Zyber Brings the Rain to Blu-Con 2010 & BD-Live

Tue Nov 09, 2010 at 04:30 PM ET
Tags: Michael S. Palmer, Blu-Con 2010, Industry Trends, BD-Live (all tags)

by Michael S. Palmer

As High-Def Digest's Blu-Con 2010 coverage nears its conclusion -- only one more article, I promise -- it's time to turn to one of Blu-ray's most touted abilities, BD-Live and internet connectivity. This panel not only featured executives from Panasonic, D&M Holdings (as in Denon & Marantz), Sony, and Universal, but also HDD's own Josh Zyber as moderator.

Here's what Josh had to say about what it was like up on stage:

I got out most of the questions I wanted to ask. The tone of the conference as a whole was, “Rah rah! Blu-ray is the greatest thing ever!” It wasn’t my place or the purpose of the panel to upset that. And frankly, I do love Blu-ray, and find great potential in its interactive abilities – even if that potential hasn’t really been tapped yet. So, yeah, I tossed out some softball questions. But I also managed to get in some pointed questions about whether BD-Live is being used appropriately, and whether its direction needs to be re-thought.

From my ever so safe hiding-in-the-dark position, Josh did a commendable job. I personally know how nervous he was, but the hundreds of other people sitting around me waiting for him to be brilliant couldn't tell. He also managed to ask some real questions in a respectful manner. Sadly, the studio reps in this particular panel were less open to discussing problems or issues. Let's recap, shall we.


The studios seem genuinely excited about BD-Live and the ability to directly communicate with their customers. Universal touted 15 million streamed trailers via their BD-Live enabled trailer pre-roll as well as 300K Pocket Blu app downloads. Also, 'The Office: Season 6 owners can use BD-Live to watch Season 7 episodes the day after they broadcast. Sony touted MovieIQ and was surprised by the sheer number of trailers downloaded from their BD-Live portal.

In one of the panel's funnier moments, Josh asked why the studios develop competing technologies like Sony's MovieIQ vs. Fox's LiveLookup when it would be easier for the consumers to have one. The studio execs each joked that their technologies are available to every other studio…but not for free.


Studio reps Tracey Garvin (Sony) and Robert Read (Universal) went on to talk about how BD-Live benefits them as producers in terms of technical and timing issues. If special features don't make the Blu-ray authoring deadline, BD-Live connection allows them to add featurettes any time they want. Universal in particular loves that their trailer pre-roll (aka forced trailers) is always evolving. Unlike every other studio with forced trailers, anyone watching a five year old Universal Blu-ray will get ads for new movies, rather than five year old ads. Then there's Fox's 'Avatar' or Sony's 'The DaVinci Code' who added features like previews of the 'Extended Collectors Edition' or footage 'Angels & Demons' premier, respectfully.

Studios love BD-Live because they're always getting a chance to keep physical media, which has traditionally been locked and stagnant, active and updated. Unfortunately, there's no official timeline for how long these features will be hosted and/or supported. Josh pointed out that Digital Copy expires so quickly, and we all remember what it was like to have DVD-ROM content from ten years ago. How many of those sites are active today? In response to Josh's Digital Copy question, the studios said that their technology affiliates don't want to be on the hook forever, which makes sense I suppose (Digital Copy specifically, they said, is meant to drive sales. A limited time offer). Software companies like Microsoft and Apple don't support their operating systems forever, but at the same time, the timelines for Blu-ray support seem short.

Josh tried to bring up issues like 'Predators' not working properly thanks to BD-Live and the need for firmware updates. It was an awkward moment because they didn't seem to care or notice that Josh wasn't speaking for himself, but for all of his readers who may not have three different Blu-ray players as a back up for when one isn't working with a particular title. Granted, Fox, the studio behind 'Predators', wasn't on this panel, but there seemed to be no accountability or acknowledgment of general problems. The tech companies said they wait for customers to tell them when there are issues, in essence blaming the studios. And the studios claimed they do quality control during the authoring process. If so, those in charge of checking these titles need to do a more thorough job.


Jeff Cove (Panasonic) and Jeff Cowan (D&M) spoke about the needs for firmware updates and the practicalities behind internet connections. Amazon customers may be calling out for more built-in WiFi, but both D&M Holdings and Panasonic are wary of WiFi for everything, especially AV Receivers. A wired Ethernet connection is more stable and reliable; if a WiFi signal drops out mid-firmware update, the hardware could end up "bricked" (non operational) because part of the firmware process involves deleting the old firmware, or operating system.

The hardware companies and movie studios went on to say updating and upgrading are ubiquitous, citing Apple as a prime example. They don't want to be swayed by customer resistance. This seems smart; the world is always going to be evolving and progressing whether people want it or not, but it was an odd declarative especially for D&M who is (at least partly) resisting the inevitable change from wired to wireless internet. Jeff Cove was smart to say that the problem isn't the updating itself, but the need to do a better job making the process easier for the customer. Similarly, D&M hopes to build in automatic firmware updates because all of their Internet compatible devices automatically check in with the D&M server. These automatic updates wouldn't actually be performed without customer permission; the automatic portion would function more as a notice that updates are available.

Overall, the theme for this panel seemed to be Evolution. With every BD-Live release, the studios are learning which features work well, and which ones their consumers like or dislike. BD-Live may not be the most exciting advancement in the world, but it seems to fit in well with Blu-ray as a gateway experience (meaning, you start with a Blu-ray Disc or Blu-ray player, and then you're streaming additional or completely separate content from the web). There may be troubles within the fast pace of evolution, but the last thing any company actively wants to do is turn away customers. The hard part, for us right now, is that it often feels a bit like work or beta testing.

What do you think, dear readers? Do you like BD-Live? Have you even used it? What's your favorite application? And what would you like to see available in the realm of internet connectivity? Hit up the forums and let us know.

Next and last up, we'll be talking about Blu-ray and Music.

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


3D Here to Stay. Still Nothing to Watch...Yet.

Tue Nov 09, 2010 at 03:25 PM ET
Tags: 3D, Industry Trends, Michael S. Palmer, Blu-Con 2010 (all tags)

Our recap of Blu-con 2010 continues with an updated look at 3D Blu-ray.

by Michael S. Palmer

What a difference a year makes!

Or not.

Last November, I attended Blu-Con 2.0 and was excited to announce 3D's inclusion into Blu-ray's list of abilities. Admittedly, I may have been a teeny-tad bit over-enthusiastic (and used far too many exclamation points). But what the hell? We're all entitled to a geek out now and again in the presence of the Shiny and the New. Twelve months into the future, 2009 seems so long ago. A time before 'Avatar' and 3D became a phenomenon. For a few sweet months, 3D was a guaranteed box office boost, but added competition on too few screens and sloppy post-conversions slowed things down a bit.

While theatrical box office records were exploding, home cinema electronics manufacturers like Panasonic, LG, Samsung, Toshiba, and Sony introduced a fleet of new 3D capable hardware. Things started slow, but in a few short months 3D TV and 3D Blu-ray Player sales topped $55 Million even though there was only one 3D Blu-ray on the market and before there were any 3D television channels. Sony said 3D (through its 3D Players, AV Receivers, TVs, Home-Theatre-In-A-Boxes, and cameras) is their fastest growing department year over year. Granted, these statistics don't necessarily speak to swarms of people demanding 3D. But that's just a case of "when." 3D is coming whether you want it or not.

3D is a compatibility Trojan Horse.

Consider the fact that there are 30 3D-ready products actively for sale at this time. Or that nearly 39 million PlayStation 3s have been sold which just became 3D Blu-ray players in their latest firmware update. Granted, the PS3 may not be able to play 3D and lossless audio simultaneously, but it and the 3D products already out there represent millions of devices just waiting to be activated (as soon as the people of Troy go to bed. Muhahahaha!).

Now, I've heard all your complaints. 3D simply doesn't work for a small portion of the population, or it causes headaches. Further, most the High-Def Digest readers (myself included) have already invested far too much money in our 2D Blu-ray home theatres. It's insulting to be asked to buy another TV, another Blu-ray player, another AV Receiver…especially at a time when there's nothing to watch.


I hear you, friends, but here's a little bit of sober truth:

We don't have to upgrade. No one is forcing anyone to buy anything new. These are what my grandfather would call luxuries. Sure we'll be green with envy because we're high-definition enthusiasts, and if you actually care about 3D (no one's saying you must, mind you), you want it. It sucks to be left behind. To be the guy who purchased a new Mac G5 only to have the faster/Windows compatible Intel chips released within six months. To be the guy who bought a 2010 Mustang GT with its brand new modern-yet-classic body, only to have Ford bring back the 5.0 in 2011, dumping 25 percent more power under the hood for the same price.

But here's Part Deux of our Truth-i-thon:

80 percent of the country doesn't have a Blu-ray player yet and if/when they get their first one, it's probably going to be 3D ready. Early adopters may scream loudest, but we're the minority here. 3D players are available now, and while they're not dirt-cheap, they're not crazy-pricey either. Further, anyone who's in the market for a new flatscreen will notice 3D TVs aren't that much more expensive than their feature/spec-equal two dimensional sibling models. And they offer that ever so tantalizing sheen of "future proof."

3D is becoming ubiquitous, and the reps from Sony and Samsung on Blu-Con 2010's 3D panel are saying consumers love in-store demos. As I theorized last year, everyone finally sees the upgrade between DVD and 3D Blu-ray. Or how about this interesting notion: Jim Mainard, Head of Production Technology for DreamWorks, said Blu-ray hasn't typically been a great business for Dreamworks because animated family films need to be portable. Kids watch movies over and over and over again, but Blu-rays don't play in cars or on mobile devices where they are often needed. With 3D Blu-ray (all four Shreks are being prepped; the first three re-mastered for 3D), they see young kids returning to the television (portability needs are also solved by combo packs).

Despite my belief 3D will be around for a while, 3D still has some hefty hurtles to vault.

Amazon reported there's still a lot of confusion in the market place. People don’t know what gear they need to play 3D, and if they purchase new 3D gear, if it will ONLY play 3D product. The answer to these questions, dear readers looking to know, is that to watch 3D Blu-ray, you will need the following:

  1. (1) 3D-Blu-ray Player (it will also play traditional Blu-rays, DVDs, and CDs while most likely having an internet connection for streaming services like Netflix and Vudu).
  2. (1) 3D HDTV (Newer models are the best; pre-2010 3D technology, like rear projection Mitsubishis, needs an adaptor).
  3. (1 or more) pairs of 3D glasses (at this time, it's wise to match these to your TV's brand).
  4. (1-2) HDMI 1.4a compliant cable(s).

For a simple set up, that's it.

If you want lossless surround sound, no problem. You'll need to add either A) an HDMI 1.4a compliant AV Receiver with "3D Pass-through" or B) a 3D-Blu-ray player with 2 HDMI outputs (one for video, one for audio).

[For more detail, my High-Def Digest colleagues, Nate and Steve, are writing an official 3D gear guide, with their personal experiences and tips on what to purchase. Look for it within the next week or so. Additionally, I will be penning my annual Black Friday & Holiday Shopping Guide. All the gear recommended in my guide will also be 3D compliant.]

But wait just a damn minute, Palmer!

Yes?

What the hell am I supposed to watch? There's almost no 3D Blu-ray titles out now, there are like two 3D TV channels, and half the titles released are tied up in these damned exclusive bundles.

Ah yes, bundles.


It's interesting, actually, to hear the different strategies. Samsung and Dreamworks were both speakers on the Blu-con 2010 panel, and they of course have an exclusive partnership. They want to make sure anyone dipping a toe in 3D waters gets a perfect out-of-box experience. They want 3D to work perfectly, and they want it to look great.

Imagine, for example, a family purchase a 3D TV and then the first thing they do is mistakenly watch the terrible red & blue anaglyph 3D (not the official "3D Blu-ray" spec at all). They might never buy a real 3D Blu-ray, or they might return the player and television. A crazy example admittedly, but there are millions of people right now watching standard definition TV on an HDTV because they don't know they need a new cable box, or a Blu-ray player, or just that they need to tune to the right channel! Ladies and germs, the unwashed masses. Or perhaps in more respectable terms, they're just not techo-nerds like you and me.

I can understand studio and manufacturer motives in bundling, but agree more with Sony's Brian Siegel. Brian said Sony wants that great out-of-box experience too, but sees no reason for exclusivity because it's frustrating and customers really shouldn't be associating 3D with "free."

So bundles will remain for a while (as they do for most gaming consoles). Panasonic is about to start one with 'Avatar' and it'll probably help them sell a lot of TVs. Those of you who went with Samsung, Sony, or another brand, sadly you'll have to wait. The exclusivity terms will end. It's just a real shame these companies are making the early adopter suffer (after investing so much hard-earned coin) for the appalling grievance of wanting to give them cash money.

The real trouble with 3D is the content pipeline. All of James Cameron's rentable cameras are out all the time. Thousands of hours of television and feature films are being made and completed as we speak. And Discovery Channel is finally getting ready to launch a 3D channel (remember Discovery HD Theater? I used to watch that for hours when it was the only HD channel.), but that's still a ways out. At the end of the day, anyone pondering a 3D purchase should consider these two options this early in the game:

1) More titles are coming soon.


November 16 is unofficially becoming 3D Day. Warners is releasing six titles, including 'Cats & Dogs: The Revenge of Kitty Galore 3D', 'Clash of the Titans 3D', 'The Polar Express 3D', 'IMAX Deep Sea 3D', 'IMAX Under the Sea 3D', 'IMAX Space Station 3D'. Disney and Sony have joined in, as well, with 'A Christmas Carol 3D' and 'Open Season 3D', respectively. 'Avatar 3D' will be out on December 1 for Panasonic 3D TV buyers. And this is just the start. 36 titles will be available by year's end. Definitely not a lot, but it's a start, which means:

2) If there isn't a title you desperately need right-this-minute!, then why not take some time, save your money, and wait for prices to drop even further as they do year-after-year. There's no rush. And the technology itself will improve (they're working on cheaper, lighter, more stylish, and eye-friendly glasses, among other things). Hey, if you wait 8-10 years, you won't even need the glasses.

Of course, some of you may be reading this and in need of a replacement television or Blu-ray player. But if you have any interest in 3D and may want to watch 3D in the future, spend a relatively few extra bucks and get 3D gear.

3D is here to stay. There's just nothing to watch…yet.

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


James Cameron: No-Glasses 3-D 8-10 Years Out

Mon Nov 08, 2010 at 06:55 PM ET
Tags: James Cameron, Blu-Con 2010, Industry Trends (all tags)

by Michael S. Palmer

Though last year had our favorite Uncle Marty, Blu-Con 2010 featured filmmakers James Cameron and Jon Landau as keynote speakers (frankly, the whole day might as well have been called Cameron/Landau-Con 2010). Not only did these guys earn 20th Century Fox dumptrucks of cash, but they changed Hollywood's view on 3D forever (though sadly, not always for the better) and single handedly broke all previous Blu-ray sales records (one in five homes with a Blu-ray disc player owns a copy of 'Avatar'). In the least shocking announcement ever to be featured here on High-Def Digest... James Cameron loves Blu-ray. He loves its unparalleled picture and color qualities. And he loves how much information he and partner Jon Landau can squeeze onto the discs.

'Avatar' 3-Disc Extended Edition

20th Century Fox Home Entertainment President and subsequently Cameron's biggest fan, Mike Dunn, introduced the filmmakers with a short speech themed, "details matter." Of course 'Avatar' is all about detail in the Blu-ray resolution sense, but it's also a film with a completely fabricated language that took a USC professor three years to invent (the professor now gets fan mail written in Na'Vi). It's a film where a botanist slaved to create scientifically-based and accurate names for the fauna of a world that does not exist. It's a film that used revolutionary advancements in facial motion capture technology to capture the fully live performances from the actors involved.

All of these things are among the many subjects to soon be featured on the 3-Disc 'Avatar: Extended Collectors Edition'. If you own the original 'Avatar' Blu-ray release, use its BD-Live section to check out an extended peak at what's on the 3-Disc edition. Obviously sensitive to the double-dipping trend, Cameron and Landau reiterated that this 3-Disc edition will be the last 2D version of 'Avatar' ever (there will of course be a 3D version available in December, but it's exclusive to Panasonic for a limited time). This is it. I know many High-Def Digest readers are frustrated about bare bones vs. special editions, but to be fair, this 3-Disc edition was announced before the original release so we could choose to wait (or rent). The real reason for the delay is that extended edition(s) footage needed to be fully rendered by WETA which takes 50-100 hours per frame to render 'Avatar' (which of course we have to multiply times two for 3D) at a cost of $1Million per minute (for finished product). Mr. Landau also pointed out that because of seamless branching, they were able to put all three versions of the movie (theatrical, special edition re-release, and extended edition exclusive to this Blu-ray) on one disc, and did not lower the bit-rate from the original release.

On top of the 16 minutes of new footage (or 7 minutes if you've already seen the special edition) which includes a brand new 5 minute opening on a 'Blade Runner'-esc Earth, there will be 47 minutes worth of unfinished / low resolution deleted scenes, and viewers have the option of watching about 60 minutes of the film using a picture in picture mode where the actors on the motion-capture stage are next to their full-res digital counterparts. This is actually very engaging to watch, and proves that 'Avatar' isn't an animated film, but one with real actors embodying otherworldly characters. Here's an example (sorry about the blurry picture):


"You don't just want the motion, you want the emotion" – Jon Landau

Cameron and Landau also showed a clip entitled the "Sturmbeast Hunt." While I've seen this sequence before on the Special Edition re-release, I was more surprised how clear, and realistic everything looked on a (estimating here) 15-18 foot screen. For relative terms, the Blu-Con 2010 screens were akin a smaller theatrical screens, yet Blu-ray is essentially half the vertical resolution of a 2K projector. Definitely a score for the format (alas, I took a picture, but in the darkened room it came out too blurry to give anyone a proper example of the experience).

Also, I don't know if this is included in any of the special features, but apparently during the film's preproduction, Cameron took actors Sam Worthington and Zoe Saldana to Hawaii so they could get the sensory experience of a real rain forest. One day, Worthington was running around in makeup and a loin cloth while speaking Na'Vi when a man out walking his dog asked what they were all doing. Worthington said, "we're making a movie, mate. See that guy over there? That's James Cameron; he made 'Titanic'." To which the man with the dog replied, "Boy, he's really gone down hill."

3D


"I haven't seen anything that didn't benefit from 3D. I watched the Masters and I hate golf. Why would I watch it? But I watched The Masters in 3D. It was really cool!" – James Cameron.

No conversation with James Cameron is complete without his thoughts on 3D technology. He believes it's not a fad, but "we're only hitting the tip of the iceberg" (his words, not mine). The first 3D technology was good and we're already a few generations past that. We will need the glasses for 3d viewing for another 8-10 years. Apparently for displays to work without glasses, the displays will have to have much more resolution which is then split back down to master for the multiple viewing angles [If anyone actually knows how that might work, please drop us a line in the forums; I'm fascinated.].

Mr. Cameron said the key to 3D expansion is generating enough content. So it won't be movies. They take too long. 3D sports / video will be the biggest push. He likened the progression of 3D to the advancement of color film. Color films started in the 30s, but weren't a majority until the 60s because in make a network TV sale (this is before any other form of home entertainment, of course), filmmakers needed color movies for the latest craze, color television. Mr. Cameron surmises it'll work the same in the not-too-distant future. 3D will just be a standard.

On the topic of good vs. bad 3D, his advice to all filmmakers and studios is the A) shoot in 3D, or B) spend the time and money to do post-conversion right. For this films need an extra six month built into the post-production schedules. When studios typically factor in the cost of post-conversion, they're not taking into consideration the time itself, and with all things considered, it's much easier to shoot in 3D. It's more natural and makes the medium fun. Cameron's goal, he says, for all 3D is to give people a premium product worth premium ticket or technology upgrade expenses. And they can't do that with sloppy conversions.

Post-conversions, Cameron said, should be for classics like 'Jaws', 'E.T.', 'Close Encounters', (all Spielberg films, he admitted, but they're his favorites) and even 'Titanic' because there's no time machine available to go back and reshoot these films in 3D.


What do you think, dear Readers? Is Cameron right? Let us know in the forums and keep your eyes out for the next Blu-Con 2010 article where we'll be focusing more specifically on 3D Blu-ray outside the Cameron universe.

James Cameron and Producer Jon Landau talk about the AVATAR Special Edition at Blu-Con 2010 Part 1 from ColliderVideos on Vimeo.

James Cameron and Producer Jon Landau talk about the AVATAR Special Edition at Blu-Con 2010 Part 2 from ColliderVideos on Vimeo.

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


Amazon Talks Blu-ray's Ups and Downs

Mon Nov 08, 2010 at 05:00 PM ET
Tags: Michael S. Palmer, Blu-Con 2010, Amazon, High-Def Retailing, Industry Trends (all tags)

by Michael S. Palmer

As our Blu-Con 2010 coverage continues, it's important to not only examine how well the format is doing, but also the missteps, mistakes, and over-complexities that continue to hold Blu-ray back despite a 20 percent adoption rate in the U.S.

There's an old saying that the retail industry is the "last three feet" for any product being sold. Inventors, engineers, designers, and marketing teams can do one hell of a job inventing the Next Great Thing, but the face of these products becomes the floor employees or the telephone reps for local and online stores. And this is potentially terrifying for the consumer. We've all had bad customer service experiences when all we wanted was for That Thing to simply…work. Not really the highest expectations, yet sometimes this is an impossible request for one reason or another.

Gadgets, gizmos, and technologies often live or die based on the store (real or virtual) experience. Earlier adopters? Well, I can generally trouble shoot things myself or with a short Google search. But my mom still can't use a VCR (though partly because it's now disconnected in favor of my brother's PlayStation 3…which she also can't use, but I'm off topic), and if she and/or anyone who doesn't inherently love these Next Best Things have a bad sales or customer service experience, well there's more lost customers, perhaps forever.

Speaking as this year's retailer representative for Blu-Con 2010, Bill Carr, Vice President of Music and Video for Amazon, outlined what he and his fellow employees have been learning about Blu-ray on the front lines and in the last three feet. After taking us through what his customers love, he then outlined Amazon's strategy for ensuring maximized sales for Blu-ray discs and all related high-definition technologies.

The Good


Well, it's Blu-Con. Mr. Carr has to say how much people love Blu-ray. It's the whole point. He started with quotes from Amazon customers "Brother Bish" and "Video Guy." Video Guy was thrilled to update his 'Bourne Trilogy'. He said he's actually enjoying the movies more and can't quite understand why. Martin Scorsese discussed this phenomenon last year, but it comes down to detail and resolution providing the most cinema-like experience possible. Brother Bish purchased the original 'The Prisoner: Complete Series' and said this Blu-ray looked like it could have been filmed yesterday and is much better than the previous DVDs.

To retail executives like Mr. Carr, this means consumers are starting to see a qualitative difference between high definition and standard definition (remember when idiots used to say, "M'eh, DVD's good enough?"). The bottom line, when tracking purchasing activity, is that spending on home video surges by nearly 400 percent (though half of these purchases are still DVD) after an Amazon.com customer buys his or her first Blu-ray.

The Bad


But other Amazon customers have worried about investing in the format. Is Blu-ray too niche? Is it the next LaserDisc? Part of this can be tracked to companies like Best Buy who are reducing physical media floor space before Christmas this year. Of course, this is mainly about DVDs and CDs, but walking my local rearranged Best Buy now feels less like a place to buy movies than before the reduction. Coincidentally or perhaps not, Best Buy spoke at last year's Blu-con 2.0, but did not this year.

Another reason for consumer concern is, despite tracking almost as well as DVD's first five years in regards to hardware sales, there are only 3,000 Blu-ray titles available. After its first five years on the market, DVD had 20,000; today, there are 150,000. Many of the still-unreleased titles are fan favorites.


Pricing is another big factor. For every 10 percent that a Blu-ray disc is priced higher than its day-and-date DVD sibling, the Blu-ray's sales will drop by 4 percent. This means with a $10 premium price over the DVD, the Blu-ray will get 50 percent of the volume mix. With a $5 premium, the Blu-ray will take 75 percent of the mix. And with a 0 percent premium, the Blu-ray will take 95 percent.

Don't forget the hardware itself. Most Blu-ray-related technical service complaints, calls, and returns are due to firmware updates. Every month, Blu-rays debut with sparkling new features which immediately proceed to cripple (mostly older, and mostly temporarily) Blu-ray players across the country. And then there are interrupted firmware updates, whether caused by be a clueless owner or an outside issue, which can kill these expensive machines dead. DVD never had this problem. Sure some early-early discs wouldn't play on some machines, but most people used DVD players for a decade. Blu-ray started with maddeningly slow players that didn't have simple features like remembering where in the movie you were last watching. I personally purchased a PS3 as my second Blu-ray player and haven't looked back, but until recently, stand-alone players have been a headache.

Lastly, though most Blu-ray players are internet-ready, connection rates are quite low. The reasoning here, of course, is that most of these players have Ethernet jacks, but no built-in WiFi. Yes, professional installers will advise hard-wiring your Blu-ray player for internet streaming because the signal is stronger and less likely to drop (which is important for services like Netflix, which measures your bandwidth before delivering you a resolution), but that isn't an option for most people whose internet router is most likely in another room. Hell, I still haven't connected my DirecTV DVR (which gives access to OnDemand) for just that reason; my router's in another room, and I didn't want to pay $75 for the wireless adapter kit. All of this means Blu-ray players aren't being used to their maximum capability and user-experience. It's SO much easier to update via an Ethernet / WiFi connection than it is to either painfully wait for a manufacturer firmware disc or download and burn a CD/DVD off the web (which of course is easy for jerks like me, but I'll reference my mom again).

The Ugly Education


In order to combat consumer frustrations and confusion, Amazon has developed a three-part strategy to make Blu-ray more appealing to current customers and the nearly 80 percent who have yet to adopt the format: selection, value, and customer experience.

Selection: movies studios need to get off their asses and release more good movies. That's the only thing that will drive hardware sales (see 'Avatar'). If people can have their favorite, must-own movies, they will upgrade. Amazon is particularly lucky because they only have what's known a "virtual shelf space." Retailers like Walmart and Best Buy can only have so many movies in-store at any one time, but Amazon can feature any and all Blu-rays.

Value: Blu-ray disc players need to come with built-in WiFi to make internet streaming more available and firmware updates easier. Further, Blu-ray disc price gouging needs to go away. There's little reason to have a Blu-ray cost more in the consumer's eyes than a DVD, unless there is added / perceived value. Catalogue titles and new releases should be packed with special features. Blu-ray+DVD+Digital Copy releases must become the norm -- it's content any where any time, not format. For example, the 'Snow White' combo pack (the most successful combo pack so far) sold 55 percent more than the average stand-alone Blu-ray disc. Speaking of which, do you all know about Amazon's "Buy Now, Watch Now" Disc + OnDemand service? Basically, when you buy one of 10,000 titles on Blu-ray or DVD for no extra charge, you'll also get a downloadable copy so you don't have to wait for shipping. Amazon On Demand titles can be played on Macs, PCs, and on any of the 200 HDTVs, set top boxes, and Blu-ray players fearing the Amazon On Demand app.

Customer Service: not just about having polite people in store or on the phone to help when things go wrong. It's about education. Helping consumers know what they need before they buy so they're not surprised or not enjoying their equipment to its fullest. For example, Amazon.com customers are really excited about the advent of 3D HDTVS and 3D Blu-ray technology. They love the theatrical experience and have been wowed by in-store demos. But, they don't understand what it entails. New televisions? A new receiver? A new Blu-ray player? The answer is yes to all, of course, but it can be confusing even for technophiles on certain subjects (it took me forever to find out that my PS3 won't do 3D and lossless audio at the same time).

In order to help you, the consumer, with your next purchase, online retailers like Amazon and Crutchfield have initiated helpful education portals on their websites with helpful FAQs and how-to guides. On Amazon, there's High-Def Headquarters and 3D 101. For another opinion, check out Crutchfield 3D.

Bottom line

We love Blu-ray, but we need more titles, more value in these titles as well as the hardware itself, and the whole experience needs to be simple and easy. Is that really too much to ask? Perhaps. Blu-ray is sophisticated soft/hardware that exists in a world where technology grows so fast that it will continuously be updated. But look at Apple; the easiest, most intuitive products around, but still evolving. Firmware is never going away, but it's up to the engineers and retailers and movie studios to make it seem invisible.

Next up in our Blu-Con 2010 coverage, we'll hear to what James Cameron has to say about Blu-ray and 3D. Until then, dear readers, hit up the forum link below to tell us what you think would make Blu-ray discs, players, and the whole high-definition experience more enjoyable, user friendly, and would help you collect more films and television series.

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


High-Def Digest Attends Blu-Con 2010

Thu Nov 04, 2010 at 06:05 PM ET
Tags: Blu-ray, Industry Trends, High-Def Streaming, High-Def Retailing, Michael S. Palmer, Blu-Con 2010 (all tags)

by Michael S. Palmer


Blu-Con, in its third incarnation, is a day-long convention where creative content distribution and hardware companies evaluate, learn, and above all -- promote -- Blu-ray as a technology. Sponsored by the Blu-ray Disc Association (BDA) and the Digital Entertainment Group (DEG), the day involved a mix of panelists from the movie studio's home entertainment divisions, blockbuster filmmakers James Cameron and Jon Landau, and even a special appearance from High-Def Digest's own Josh Zyber. Look in the coming days for HDD's continued coverage of the many, many panels. 3D was the major headline, as evidenced by all the television demos and even the site of seeing Panasonics new consumer-level 3D camera, but it was also great to hear the studios promoting quality catalogue and classic releases.


For this first article, I think it's best to take a look at where Blu-ray is today as a format. Most of us reading and writing for High-Def Digest are enthusiasts. A range of "innovators" or "early adopters" on the Rogers model for adoption and diffusion of innovations. We are those who paid, in many cases through the roof, to beta test Blu-ray and/or HD-DVD because we love resolution, increased picture quality, and roaring surround sound. We bitch loudly, but sometimes secretly take pride in the technically know-how needed to update firmware or patch our WiFi networks. We're the guys and gals whose family and friends turn to when it's time for them to finally buy their newest toy.

The trouble, however, for any media innovation is that it needs to be monetized to survive. Laserdisc and BetaMax are only two formats which never went Mainstream, and every time we -- the excitable Must-Have-It's whose eyes glow when reading countless blogs and Black Friday guides -- jump headfirst into the Latest and Greatest, we risk diving into a draining pool.

But here's the great news from the other folks investing time and millions of dollars. Blu-ray is here to stay, and despite an imploded economy, it's one of the few growth areas in home entertainment distribution.

Let's talk math.


Home Entertainment Presidents from Universal, Fox, Sony, and Warners seemed genuinely confident with 2010. Like men who finally understand that media consumption and production aren't about linear transitions from one single format to the next single format. They're in the content business, and their jobs in this new century are to provide said content in any and all formats -- physical media, streaming, downloading, smart phones, social networking. And the good news? Consumer spending is at an all time high. Counting all media, there have been 3.6 billion "transactions" this year, up nearly 60 million from the recession-cramped 2009.

2010 is already the best year in Blu-ray's short history. 'Avatar' is the first true crossover disc, selling 8 million Blu-ray units in its first release -- many bought Blu-ray players just to see this movie. Though DVD is down 14 percent, Blu-ray is up 86 percent, which translates to a cool $1Billion in disc sales in the first 9 months (to be fair, this doesn't offset the loss in DVD sales yet). A promising figure by itself, lest we forget retailers do a majority of their business in the fourth quarter / holiday shopping season. Further, catalogue or library titles sales grew 60 percent -- this is particularly good for Blu-ray fans because it means the studios are seeing dollar signs and we reap the benefits by finally getting our favorites in the format. Sales of stand alone Blu-ray disc players are outpacing Sony's PlayStation 3 (stand alone player sales are important because those owners typically buy more movies than game console owners). What's staggering in this economy is that homes with one Blu-ray player have doubled since 2008 to 21 million.

This means Blu-ray officially has a 20 percent adoption rate in the US, and when that number hits 25 percent (perhaps this Christmas or early next year), Blu-ray will officially be Mainstream in the eyes of the number crunchers who decide such things.

[sorry I don't have the exact figures, International Readers, but know this: Europe Blu-ray disc sales are kicking ass, and Blu-ray Player sales in Japan are easily outpacing DVD players]

What all these statistics mean is that our family and friends are finally getting it. They see the value in the extra picture quality and they're still interested in "collecting" which puts a smile on the face of any home entertainment executive. The studios themselves seem better connected, and as a result, are doing a better job. Blu-ray releases brim with bonus materials and the flexibility of including a DVD and/or digital release. Yes, there are problems -- firmware, user experiences, networking and compatibility issues, the speed of evolution preventing 'future proofing' -- and these all need addressing. But the players themselves are faster now, easier to use for the average consumer, and are becoming gateway media machines. They're almost becoming DVD-easy and DVD-simple, which has long been a barrier.

The smartest thing the folks behind are doing are not trying to make Blu-ray only a "disc machine." Yes, physical media is the best quality available because even Blu-ray's data rate is ten times faster than a 4.6Mbps broadband internet connection (the average rate in most households). But, in five…ten…fifteen years, discs will likely go the way of the dodo, and for Blu-ray to become the last great physical media format, it has to be relevant in the era of streaming, and offer digital flexibility.

Rental Windows, Streaming, and Piracy


After lauding Blu-ray's achievements, the studio presidents opened up the conversation to discuss the 28-day rental windows, streaming and piracy. Apparently, the 28 days number came out of the legal agreement they made back in the days when RedBox was sueing everyone. These windows (and rental only versions of Blu-rays) will remain in place because they promote sales. The studios said they're seeing anywhere from a 7 percent to 15 percent sales increase (based on comparative titles who did not sell with a window). It seems we consumers have a choice: ownership / premium rental (such as VOD, see blow) with convenience and privilege, or subscription / $1-a-night Red Boxing for savings on a longer timeline. (Please take our poll regarding your own Blu-ray purchasing habits.)

The studios are also heavily invested in Video On Demand (VOD). They make good money, and will have more day-and-date releases. As for streaming, Netflix will remain a place for generally older titles (Starz being an exception because it's actually related to a Pay TV distribution window), but the studios are open to changing this relationship if favorable deal structures can be found.

In the future, we can expect more catalogue titles in the Blu-ray format thanks to companies like Sony seeing triple digit gains in their library release. And the DEG is hoping to perfect Digital Cloud, or Digital Locker, which means one purchase for content with the ability to stream or play the media on any device without the fear of losing it forever because it was only locally stored on a hard drive that decided to commit harikari.

Piracy is still a big deal for the studios and in countries where they aren't blocked by government interference (cough, China, cough), they have special teams that aim to combat pirates by releasing movies quick and for a competitive price. The studios also wish they could rebrand the act of stealing copyrighted content away from "piracy" which doesn't seem criminal. But here's the struggle: how do you change something culturally rooted when people in countries like Korea, Russia, and Spain doesn't see it as wrong (of course no one is implying that everyone in every piracy-heavy territory is a jerk…except you, Gary!) The studios would love to see laws here in the United States like those recently passed in France.

[author tangent:As someone who works and lives in Los Angeles, I can personally attest to piracy, or stealing, having real world effects on regular folks. Yeah, the nameless, conglomerate-owned studios are making record profits, but when the bottom line needs to be met for shareholders, who do you think suffers? It's the creative community: the stuntmen, the secretaries, the editors, the sound designers, the grips and electrics, the set dressers. No millionaires here. This also directly translates to more sequels, remakes, and less original, well-made content. So if any of our readers are avid bit-torrent users, though you probably don't care, you've literally put middle-class human beings out of work. Well done. By the way, pirate rogues, what do you do for a living? Perhaps you could let us know so we could undercut your business practices. Lovingly yours, Soap Box Palmer]

Okay, I'm back. Sorry. Where were we? Oh yes, Blu-ray in 2010. Okay, it's doing really well, expanding in hard times, and is about to be Mainstream. Of course, there are problems, namely user experience and number of available titles. I'll look to address some of those in a future panel which was lead by Amazon.com's Vice President of Music and Video, Bill Car. Please keep your eyes peeled and ready.


PS. I thought this was funny to see Toshiba go from format war enemy to sponsor. How far we've come in so little time.

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


» High-Def Digest home page