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Sales Report: Blu-ray the Majority Format for 3 of the Top 5 Movies Last Week

Fri Feb 10, 2012 at 12:00 PM ET
Tags: Blu-ray, 3D Blu-ray, Blu-ray Sales Figures (all tags)

57 percent of the sales of ‘Drive’ were Blu-ray, while ‘In Time’ and ‘The Thing’ boasted similar numbers.

Blu-ray sales tend to make up between 20 percent and 30 percent of total disc retail sales, but that doesn’t quite tell the whole story. On an individual basis, Blu-ray is bringing in some big numbers.

Last week, Blu-ray sales accounted for 57 percent of ‘Drive’ sales, the number one selling title. They did similar numbers for other flicks in the top five like ‘In Time’ (54 percent) , ‘Real Steel ‘(42 percent) and ‘The Thing’ (55 percent). Action movies clearly do well on the high definition format.

The one title in the top five sold that didn’t bring in much in the way of Blu-ray sales was ‘Treasure Buddies.’ It totaled at 18 percent Blu-ray sales. It’s not a big share, but considering the movie, that’s not too much of a surprise.

Source: Home Media Magazine

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Blu-ray Encryption Cracked Using $350 in Hardware

Tue Dec 06, 2011 at 02:00 PM ET
Tags: Blu-ray, HDCP (all tags)

The weak point in HDCP was much simpler to exploit than previously imagined.

One of the unwritten rules of copy protection and digital rights management is that if it exists, it can be defeated. Blu-ray copy protection however, has been one of the harder ones to crack. Even though the HDCP master key was leaked in 2010, hardware was an issue.

When that key was leaked, Intel said that it was just one component and that anyone wishing to break the encryption using the key would have to manufacture their own microchips to make it work. Researchers at Ruhr University proved Intel wrong.

They accomplished this task using a $350 hardware setup that goes in between two HDMI cables and alters the signal being sent undetected. "The fact that we were able to achieve this in the context of a PhD thesis and using materials costing just €200 is not a ringing endorsement of the security of the current HDCP system," says Dr. Ing Tim Güneysu, the project lead.

Source: Tom's Hardware

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Entertainment Spending Up Five Percent - Blu-ray Sales Soar

Tue Nov 01, 2011 at 02:00 PM ET
Tags: Blu-ray, Industry Trends, Sales Figures, High-Def Retailing (all tags)

DVD spending is down significantly, but Blu-ray helped pick up the industry as a whole - if that's not great news for the format, we don't know what is.

The Digital Entertainment Group's latest survey indicates that high definition packaged media is on the rise in a big way. And yes, when they say "high definition packaged media" they clearly mean Blu-ray. Unless there are still HD DVDs floating around out there, but we're just going to go ahead and make the assumption.

Blu-ray disc sales rose by 58 percent this year, with a 60 percent increase in catalog titles like 'Citizen Kane,' 'The Big Lebowski' and, of course, 'Star Wars.' That's great news, but giant sales numbers for titles like this doesn't necessarily mean that the format as a whole is on the rise. We need something more solid, and we got it.

Blu-ray player sales increased by 52 percent over last year. Certainly there are some upgrades in there, but the majority of that seems to be first-time Blu-ray owners, marking a huge shift in mainstream consumer adoption. The DEG puts the number of Blu-ray enabled homes at a whopping 33.5 million.

So how much did Blu-ray help the overall increase in entertainment spending? A lot. Blu-ray was up 58 percent, electronic sellthrough was up 13 percent and VOD increased by five percent. DVD sales are

way down again, rental revenue is down again and brick and mortar stores are hurting. Only one format is truly thriving, and that's Blu-ray.

Source: Home Media Magazine

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Disney Will Make All The Blu-ray Money It Can!

Fri Sep 23, 2011 at 12:00 PM ET
Tags: Disney, Blu-ray, Industry Trends (all tags)

The company sees a move to a digital marketplace as inevitable, according to the company's CFO.

There's a lot of nay saying when it comes to retail sales of media. CDs are disappearing from stores and PC games are all but gone thanks to digital distribution. The unsure footing of retail isn't going to stop Disney from continuing to rock out Blu-rays while there's a market.

Jay Rasulo, the CFO of Disney, says that the company is going to keep pushing out Blu-rays along with DVD and digital copies of the movie. Disney has one of the best conversion rates in the industry - that's the ratio of physical copies sold compared to box office performance - so they're not about to leave all that money behind.

Rasulo says that there's no question that the retail media market is disappearing, but says that there's no telling yet just how fast. "We are maximizing Blu-ray for whatever it is," he says, "But clearly, over time, this is a market that is moving over to digital."

Source: Home Media Magazine

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Data Points to a Strong Year for Blu-ray

Tue May 03, 2011 at 10:00 AM ET
Tags: Blu-ray Players, Blu-ray, Industry Trends, High-Def Retailing (all tags)

Things are looking good for Blu-ray this year, with both hardware and disc sales expected to rise.

If you've been to a Best Buy recently, you've probably noticed that Blu-ray has all but taken over for DVD in electronics stores across the country. Stores with a broader appeal - like Walmart or Target - still carry quite a few DVDs, but Blu-ray is on the rise again this year according to analysts.

The folks at IHS Screen Digest expect a 93 percent increase of Blu-ray hardware in households this year and FutureSource says that by the end of 2011 there will be nearly 50 million Blu-ray playback devices in homes across the country. Doubling the hardware would, of course, result in increased software sales.

FutureSource has a prediction there too, stating that software sales are projected to reach 120 million units, up from 85 million last year. Streaming and VOD services may be up, but Blu-ray and DVD sales still make up for 80 percent of the average entertainment budget.

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Harry Potter: The Quest - Play Games to Unlock Content Leading to Blu-ray Release

Wed Mar 09, 2011 at 12:00 PM ET
Tags: Harry Potter, Blu-ray (all tags)

As the community earns points, more features and videos are unlocked, culminating in the April 15th release of the Blu-ray.

If you're a fan of the 'Harry Potter' series, you'll want to check out 'Harry Potter: The Quest.' It's a website created by the folks over at Warner Brothers to add some fun to the experience of watching new videos and checking out new content.

Participation is simple - all you have to do is play games. As you play, you and everyone else in the community gains points that go towards unlocking a new reward. It's a group effort, and everyone gets the new piece of content at once.

If you play, you also stand a chance at winning prizes that range from DVDs and games to tickets to the Wizarding World of Harry Potter at Universal Orlando resort. You could even win a trip for two to the world premiere of 'Harry Potter and the Deathly Hallows - Part 2' in London this July.

Source: Harry Potter: The Quest

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Discs mentioned in this article: (Click for specs and reviews)
Harry Potter and the Deathly Hallows - Part 1 (3-Disc Combo Pack) (Blu-ray)

DVD Isn't Dead, Says Disney CEO

Wed Mar 09, 2011 at 10:00 AM ET
Tags: Disney, DVD, Blu-ray, Industry Trends, High-Def Retailing (all tags)

People are still buying discs, he says, but "they’re just not buying as many of them."

Disney CEO Bob Iger appeared on the 'Charlie Rose Show' on March 3rd to talk some business. We didn't watch it, but thankfully the folks at Home Media Magazine did.

Iger had plenty to say on the subject of DVDs. It seems, from the out of context quotes, that when he says DVD he means all physical media including Blu-ray. Iger says that people aren't buying as many discs, but contends that "the primary reason, I would argue, is that they have other things to do."

The CEO says that limiting content is going in the wrong direction. Just because something isn't available streaming, for instance, doesn't mean that people will go out and buy the Blu-ray or watch it on TV. "What we must do is make the product available to them under flexible or expanded circumstances."

Source:

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Premium VODs May Come With DVD/Blu-ray

Tue Feb 15, 2011 at 12:00 PM ET
Tags: VOD, Blu-ray, Premium VOD, Industry Trends (all tags)

Studios seem to be sticking with the idea of premium on-demand content, but they're hoping to sweeten the deal.

There's no question that a market exists for premium on-demand content. Paying $30 to see a movie that's still in the theaters - or just out of them - is a fair price point to some. For the majority of potential customers though, it's still just too high.

Steve Beeks of Lionsgate revealed an interesting idea to make premium VOD more appealing to customers on a conference call over the weekend. Instead of shelling out $30 for a one-night rental, you would also get a copy of the movie when it came out as well - either in digital or DVD form.

"Some of the cable operators have brought that up as a potential idea," says Beeks. "I don’t think we have settled on anything - we are actually anxious to see how the market develops."

The idea of premium VODs that include a copy of the film seem incredibly appealing, especially if a Blu-ray option was offered. $30-$40 for an early on-demand rental plus a copy of the Blu-ray when it comes out could be an offer too good to refuse.

Source: Home Media Magainze

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Anchor Bay President Bill Clark Talks 3D, Streaming, and Blu-ray

Tue Feb 15, 2011 at 10:00 AM ET
Tags: Anchor Bay, Blu-ray, 3D, Industry Trends (all tags)

Though he's very excited about the future of Blu-ray, he's taking a wait-and-see approach to 3D content.

The folks over at Home Media Magazine have a great mini-interview up in which they ask questions of Bill Clark, the president of Anchor Bay Entertainment. Many of his answers veer towards the expected, but he does reveal some interesting things about the strategy of the company moving forward.

When asked about his opinion on the Blu-ray format, Clark answers that he doesn't see it slowing down any time soon. "The format is clearly well down the path of mass adoption," he says. Clark also has some interesting thoughts on waiting to go with Blu-ray 3D.

"We’ll certainly utilize the format where it makes sense. Obviously, we will not be the first to market on BD 3D," says Clark, "but we will evaluate on a title-by-title basis and, where it makes sense, will release in this format."

Source: Home Media Magazine

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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.

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