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 www.TheLookAndSoundOfPerfect.com.
SOURCE North American HD DVD Promotional Group, Inc.

Lauren Mayer, lmayer@webershandwick.com, or John O'Brien,
jobrien@webershandwick.com, both of Weber Shandwick, +1-425-452-5400, for
North American HD DVD Promotional Group, Inc.

L I N K (http://www.reuters.com/article/pressRelease/idUS35203+07-Jan-2008+PRN20080107)

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.

WTF??? :confused:

i woud love to see how they spun this...

and of course Bourne outsold Spiderman3 because they didn't count the Spidermans that were bundled with the 40GB PS3...

I would be willing to bet that attach rate doesn't include all of those Toshiba laptops either....

Is this the response to the WB decision???

This is getting sad....its like the Dolphins trying to convince to Patriots that they are competative.

Great press release. It might have actually had some meaning had Warner not announced BR exclusivity for later this year. I will be interested to hear their strategy for survival following Warner's announcement last week. So much of the movement in any market (stocks, commodities, the economy) is based not on reality, but perception. That is the one variable that the numbers touted in this press release will not be able to change: public perception that Blu-Ray is winning or has all but won the format war. Uncertainty about obsolescence will keep people's money in their wallets as far as HDDVD is concerned. It may not translate immediately to sales for BR, but it will definitely slow things down for the HDDVD producers and studios.

as said before... if it wasnt for the ps3, blu ray wouldnt be successful

and of course Bourne outsold Spiderman3 because they didn't count the Spidermans that were bundled with the 40GB PS3...
Where's the confusion - sold vs given away = a reasonable claim.

how could their sales grow twice as fast as blu-ray, when blu-ray outsold hd-dvd disks every single week?

as said before... if it wasnt for the ps3, blu ray wouldnt be successful

90% of the players wouldn't exist.

how could their sales grow twice as fast as blu-ray, when blu-ray outsold hd-dvd disks every single week?
Simple - you're basing it on ONE source of data. It may or may not be 100% of the actual sales............for one it doesn't include Wally's. It's a valid indicator.....but there are many ways to spin a PR.

It's the way the world works :D If Neilsen shows you in a positive light then it's gospel, if it doesn't then it erroneous.........same with every data source.

as said before... if it wasnt for the ps3, blu ray wouldnt be successful

The funny thing is I remember about a year and a half ago the HD camp saying the PS3's impact would be minimal and wouldn't rival the effect the PS2 had on DVD.

Up until this point, I have not cared who won, and I have not yet bought into any of the formats, but I think it is clear with the events of the last week, HD-DVD is virtually if not completely dead.

as said before... if it wasnt for the ps3, blu ray wouldnt be successful

That's a good thing then, isn't it?

as said before... if it wasnt for the ps3, blu ray wouldnt be successful

Well the PS3 is here and Blu-ray is successful so what's the point people continually posting this nonsense. That's like saying "If it wasn't for the Big-Mac, McDonalds wouldn't be successful." :rolleyes:

so basically gamers decided the format war?

who bought all the blu ray movies? 90% of them were gamers.

Well, what ever either camp says at this point, after the Warner/New Line decision, the format war just feels different. The WB/NL announcement was huge, and I believe the majority of consumers know this at some level.

I'm a BIG gamer(Xbox 360) and bought a ton of BD/HD DVD movies.

I never understood the "Gamers don't watch movies" claim.

so basically gamers decided the format war?

who bought all the blu ray movies? 90% of them were gamers.How popular were DVD movies before the PS2 came out?
Do you also hate the PS2?
Or maybe you'll just deny that the PS2 did anything for the DVD format.

Theres nothing wrong with using another market to help your own..
Heck if HD-DVD could sell millions of player by making them hybrid toaster ovens... then all the power to them.

so basically gamers decided the format war?

who bought all the blu ray movies? 90% of them were gamers.

This is another thing I don't understand, and it's always promulgated on AVS more than other places for some bizarre reason. There is this strange notion that film lovers and gamers are mutually exclusive, or that gamers just enjoy movies like Underworld or Ultraviolet. That is nonsense. Heaven forbid that I enjoy quality movies and videogames.

I never understood the "Gamers don't watch movies" claim.
It's not a "don't watch" it's a "don't buy". Attach rates are low for consoles, the PS3 is just under 1.........attach rates for SA players are higher. It's all relative - the beauty of numbers..........even a small % of a large number allows you to beat the competition.

http://www.avsforum.com/avs-vb/showthread.php?t=968914