HD DVD Rallies Consumer Audience in 2007 Driving Nearly One Million Dedicated Player

[diabolo]

HD DVD Rallies Consumer Audience in 2007 Driving Nearly One Million Dedicated Player Sales in North America

HD DVD software sales increase during key holiday season, consistent with
higher player ownership

LAS VEGAS, Jan. 7 /PRNewswire/ -- At the 2008 Consumer Electronics Show
in Las Vegas, the companies of the HD DVD Promotional Group recapped a
breakthrough year for the high definition format, reaching nearly one
million dedicated HD DVD players sold in North America and delivering on
the promise of affordability, quality and a consistent experience on every
machine. With a leading install base of dedicated players, there are now
more than 400 titles available in the US and more than 1,000 titles
available worldwide. During the key five week holiday selling period, HD
DVD software sales grew at nearly twice the rate of Blu-ray, which was
consistent with increased player growth.

"Our focus from day one has been to deliver the highest quality
hardware and the best, most immersive home entertainment experiences for
consumers at affordable prices," said Jodi Sally, vice president of
marketing, Toshiba's Digital A/V Group. "With nearly one million dedicated
players in the market in North America, and a leading position in the PC
market worldwide, we're seeing software growth follow suit."

As the industry looks for a format that can break into the mainstream
consumer market, HD DVD continues to be the affordable, high quality
leader, setting the bar for a positive consumer experience. Through a
combination of quality and price, HD DVD meets the essential requirements
for any format to successfully reach the mass market.

Strong Hardware and Title Growth

In 2007, HD DVD reached a broader group of consumers than ever before,
showing strong movie title sales and high attach rates stemming from the
major influx of dedicated HD DVD players on the market. Based on Nielsen
data, when comparing first week consumer sales, "The Bourne Ultimatum" on
HD DVD outsold "Spiderman 3" on Blu-ray. Among all high definition formats,
HD DVD still maintains the highest attach rates -- more than twice the rate
of Blu-ray.

"The HD DVD camp has always stuck to a simple set of principles," said
Ken Graffeo, executive vice president of HD strategic marketing for
Universal Studios Home Entertainment, and co-president of the HD DVD
Promotional Group. "Give consumers who buy into HD DVD what they paid for.
In fact, give them more than they expected. Show them that quality and
value go hand in hand with HD DVD. Show them what advanced interactivity
really means and how it can enrich your favorite movies that you watch over
and over."

To this point, Toshiba's HD DVD players received several Editor's
Choice and Product of the Year awards from respected media outlets,
including Sound & Vision, Electronic House, E-Gear, and Ultimate AV.

On the PC front, the HD DVD Promotional Group announced that by the end
of 2007, HD DVD-enabled PCs represented more than 80% of all high
definition-capable PCs. The HD DVD companies expect notebook PCs in
particular to be the variable that helps keep quality high, but prices low,
by driving down manufacturing costs for drives across all HD DVD players.

Global Studio Support

A critical milestone for HD DVD in helping to drive strong sales across
the board was the strong support from Hollywood studios and global content
providers. In 2007, HD DVD went from being supported by 41 studios and
distributors worldwide to 65.

Groundbreaking Interactive Features

Using Microsoft's HDi technology, HD DVD led the way in 2007 with
never-before-seen interactive experiences that have changed how consumers
interact with their favorite movies. HD DVD was the first to offer true
picture in picture director's commentary in 2007 with Warner's "300". This
feature was not included in the Blu-ray version, and showcases a key HD DVD
feature that caters directly to the fan community. Universal's "Heroes" and
Paramount's "Transformers" also included picture in picture features than
enhance the experience for fans.

HD DVD was also the first to deliver web-connected content, offering
bonus material on titles such as "The Bourne Ultimatum," "Heroes: Season
1," and "Transformers" -- all offering downloadable content that's
continually updated so fans of the movie can return for new features. The
interactive elements are all designed to promote an enhanced "second look"
environment and to rally the fan communities around key titles. In
addition, Universal launched U-Shop, an extension of the U-Control feature,
letting you buy items related to a movie directly through the guaranteed
internet connection on every HD DVD player. Universal's "Evan Almighty" was
the first title to showcase this, illustrating what can be done when every
player on the market can access these features.

As the official successor to DVD, HD DVD has added to the heritage of
the most successful consumer electronics format ever, bringing the highest
quality HD experiences to consumers at the most affordable prices. The HD
DVD Booth at CES 2008 is located in South Hall 1 (booth #21266).

About HD DVD

HD DVD is the next generation, post-DVD standard for high capacity,
high definition optical discs, approved by the DVD Forum. The DVD Forum
develops and defines DVD formats. Its more than 200 strong membership
brings together leaders in movies and entertainment, computing, consumer
electronics and software. HD DVD is fast becoming the primary visual medium
for the age of high-definition TV. The North American HD DVD Promotional
Group, Inc. is an organization established to promote the HD DVD format and
educate consumers in North America. For more information and a complete
listing of HD DVD launch titles please visit
http://www.TheLookAndSoundOfPerfect.com.

.................

[bowl-o-rama]

and blu-ray has just as many standalones according to Toshiba themselves.

[Super_ME]

And this means HD DVD is going to around awhile, no white flag yet, or in the foreseeable future.

[littlealex]

Well HDM is finished then.

[Grubert]

reaching nearly one million dedicated HD DVD players sold in North America

Ahem...

Ozaka said North American sales of HD DVD players, including movie drives in Microsoft's Xbox 360, totaled 1 million in the last year

http://news.yahoo.com/s/nm/20080107/...ba_bluray_dc_2

Oh and BTW, Toshiba's latest (reduced) 1-million target was:
- For the US (not North America)
- For Toshiba-brand players (not Microsoft)

[Mr Magoo]

Originally Posted by Super_ME

And this means HD DVD is going to around awhile, no white flag yet, or in the foreseeable future.

That dedicated player definition must include the Xbox "dedicated" standalone. I have not heard they were anywhere near 1 million HD SAL's.

I think it it a little early to say Toshiba is going to stay in this fight long term. The Warner bombshell just got announced on Friday. Doubtful Tokyo would have gotten its board of directors together to decide to drop the format over the weekend. Also, If they drop the format, short term at least, they will announce a big loss as they write off inventory and R&D costs. This will take Toshiba a little while to sort out at the highest levels of management.

IMO dropping HD immediately would be the smart move and this is the true lesson of the Betamax war 30 years ago. Anyone with an ounce of common sense now knows that BD has won. Toshiba would be wise to bite the bullet and convert to BD as soon as possible and try to make some money in the winning format. Instead, especially considering the Asian culture of "saving face", they may soldier on with HD like Sony did with Betamax for 5 more years. If so, not only will they lose more money trying to prop up a dying format but they will hurt their brand in the TV and PC business as their other products will be linked to a HD media format that is not viable.

Dropping HD would also be the best move for the general public. If Toshiba shut down now, with only about 1 million players in existence they could probably offer say a $100 trade in allowance for a Toshiba BD machine or Tosh dual format player and help ease the pain for their customers. By sticking with HD there will be hundreds of thousands of J6P's who aren't aware of what is going on who will still buy HD over the next few months and really get burned and eventually pissed at Toshiba and possibly the retailer who put them into the failed format without warning them.

[gemini75]

1 million HD DVD vs 4 million blu ray players in homes. Hmmm Doesn't seem much of a breakthrough for a format that launched before Blu. Not winning sales for a single week but showing increased sales at Christmas is no major revelation.

[WeaselSniff]

I love the part in the press release about HD DVD being "the official successor to DVD."

bitter bitter bitter.

[Jimbo976]

No mention of the WB news in that press release I see. hmm.

[Blueguy]

software sales for the format that grew at nearly twice the rate of Blu-ray during the five week holiday selling period.

Wonder how they came up with that?

and a leading position in the PC market worldwide

Again, wonder where they get that idea.

[Kotatsu Neko]

Originally Posted by Super_ME

And this means HD DVD is going to around awhile, no white flag yet, or in the foreseeable future.

Toshiba may wish that to be true, but you can see here and on other forums how the HD DVD faithful are now abandoning the format en masse.

It hasn't got long left to live.

[Liqwid]

Originally Posted by WeaselSniff

I love the part in the press release about HD DVD being "the official successor to DVD."

bitter bitter bitter.

Actually, it is true. The DVD Forum, which consists of all of the movie companies and CEs all agreed on it, except, maybe, Sony and some others.

[hi-def-fanboy]

Toshiba has probably offerred Disney or Fox a biliion dollars to change....

[mztik]

I'm sure Toshiba will drag HD DVD until the end, which seems to be sooner than expected.

[nexpos]

When do we (or do we at all) find out about the current RED studios' intentions for 2008?