:rolleyes: http://www.hollywoodreporter.com/hr/content_display/news/e3i16fe8d093beb449b512ca56f18fa9eb4

It wasn't as bad as many feared. That's the official verdict on 2007 as final figures show consumers spent $23.7 billion renting and buying home entertainment software, 2% less than the previous year.

Figures compiled by DEG: The Digital Entertainment Group on behalf of the studios show that consumers spent $16 billion on DVDs in 2007, down from $16.6 billion the previous year. Next-generation media sales, both Blu-ray Disc and HD DVD, added $300 million to the pie, while the rental business was flat at $7.5 billion.

"Consumer appetite for DVD is still very strong," DEG executive director Amy Jo Smith said, noting that DVD generated more cash in 2007 than music, video games or even boxoffice receipts. "There is a softening in marketplace, but it's not as dramatic as the headlines were letting on. And maintaining a $24 billion a year business -- that's huge."

Added David Bishop, worldwide president of Sony Pictures Home Entertainment: "Going into it (the fourth quarter), I thought we would be down around 5%, so it beat my expectations. The sheer number and strength of titles we had in the fourth quarter is what saved us."

Indeed, the fourth quarter saw virtually all the strong summer theatricals arrive on DVD, with studios no longer saving a choice title or two for January. December, in particular, was packed with hits, including "Pirates of the Caribbean: At World's End," "Harry Potter and the Order of the Phoenix," "The Bourne Ultimatum" and "The Simpsons Movie."


Studios shipped an estimated 1.6 billion software units to retail in 2007, 2% more than in 2006, according to figures compiled for DEG by Swicker & Associates. That brings the total number of units shipped since DVD's 1997 launch to nearly 9 billion discs. In the fourth quarter alone, 662 million DVDs shipped to retail.

Nielsen VideoScan numbers, released last week, show a 5% decline in DVD units that actually sold through to consumers in 2007. That decline is less than the drop in consumer spending reported by the DEG for several reasons, including the influx of high-priced boxed sets, mostly of complete TV series, which still count as a single unit; the growing tendency among studios to release two or more versions of a hot new theatrical release at the same time, one packed with extras and commanding a higher street price; and a decline in catalog product, which generally tends to sell for a lot less than new releases.

Still, studio executives see cause for concern, not just with the decline in spending, however slight, but also because of a 12% drop in the average conversion rate, or DVD sales in relation to boxoffice. The fact that the quarter's biggest titles were sequels could be a factor, studio presidents said.

"The size of the DVD business this year had a lot more to do with the size of the films being released in theaters," Lionsgate president Steve Beeks said. "Sequels drove boxoffice, and historically sequels don't convert as well to DVD."

The two top-selling DVDs, according to Home Media Magazine market research and the Redhill Group, were Paramount/DreamWorks' "Transformers" and Warner Home Video's "Happy Feet," with respective sales of 13.7 million and 13.5 million units.

At 13.2 million units, Walt Disney Studios' "Pirates of the Caribbean: At World's End" was the top-selling sequel and the No. 3 title overall. Warners' "300" finished fourth with estimated sales of 12.9 million units, followed at No. 5 by Disney's "Ratatouille," with 12 million units.

Paramount/DreamWorks' "Shrek the Third" finished sixth for the year with estimated sales of 12.2 million units, followed at No. 7 by Warners' "Phoenix" (10.1 million units), Warners' "The Departed" (No. 8, 8.9 million units), 20th Century Fox's "Night at the Museum" (No. 9, 8.7 million units) and Universal Studios' "The Bourne Ultimatum" (No. 10, 7.4 million units).

The DEG also says 33 million DVD players were sold to U.S. consumers in 2007, about the same as last year, with 12 million players selling in the fourth quarter. That puts the total number of DVD players in U.S. homes to 230 million, counting portable units and televisions with built-in DVD players.

The DEG pegs the U.S. household penetration rate at 90%, with 60% of households having more than one DVD player.

Counting game consoles, 4.5 million HD media players have been sold to consumers since the first players arrived in 2006. Toshiba shipped its first HD DVD player in April 2006, while the first dedicated Blu-ray players showed up in late June -- followed in November by PlayStation 3, with a built-in Blu-ray Disc drive.


Still along way to go! Also i think this kind of shows that warner got paid! those sales are abismal. Sony should of just stuck with games and left alone the media for movies. Betamax and VHS all over again. For Hidef to see those numbers it's going to take years. You cannot base what the consumers choice is off 300 million when you gained 16 billion on the other industry!

Thats really low.

I hope it goes up or HDM will be OWNED!

$300 million divided by $16 billion = 1.875%...

If true, that's even lower than what some insiders estimated.

I fixed the link FYI!

Like I have stated before....I am not sure either company wants to win that......HD optical discs are and IMO will predominately be niche. At best, you will have many different ways to get HD in some form or the other and in no way will optical media dominate this to the point that DVD does today.

The good news for the studios is DVD revenue is down only 2% instead of 4% predicted in november or the 10%+ feared in June.

The warning for them is that units were down 5% and they achieved higher revenue only through higher priced box sets. The free trinkets like figurines in the box are a gimmick --- there's limits to how long they can do this before the novelty wears off.

300M is still tiny. Anyone care to predict the number at end of 2008?

You cannot base what the consumers choice is off 300 million when you gained 16 billion on the other industry!I don't remember you complaining about the Paramount deal so why complain about any deal that Warner might have made? It just seems to me that if you didn't complain about Paramount you have little right to complain about Warner.

I don't remember you complaining about the Paramount deal so why complain about any deal that Warner might have made? It just seems to me that if you didn't complain about Paramount you have little right to complain about Warner.

No doubt about that. I think there is very little doubt that either of those deals had little to do with what the consumer wanted IMO... If anything Warner's made a little more sense b/c now it seems for HDM in general to win there needs to be only one format.

I wonder how much sales dvd made during its second year of existence. More than $300million?

If you were to count the money that has been thrown around here in rumors by both sides it would be closer to $100,000,000,000. :D

It'll be significantly higher in 2008, now that there's only one format.

It'll be significantly higher in 2008, now that there's only one format.
Until I can buy any HDM movie I want on Blu-ray, there are still 2 formats. Period.

300M / 23.6B (the number mentioned) = 1.3% (pretty pathetic)

I wonder how much sales dvd made during its second year of existence. More than $300million?


I'm not sure, but I hardly expect HD media sales to scale linearly with those of DVD.

That little 5" movie disc was sought after since the advent of the CD.

To most people, the difference between DVD and HD DVD/BD is not in the same league as the difference between VHS and DVD.. for several reasons.

So it looks like Warner got paid more than what the whole industry raked in.

300M is still tiny. Anyone care to predict the number at end of 2008?

2008- 12 months of the majority of consumers believing that there is only one significant format now?

less than $500 million, that's my guess.


I'm also curious as to how that $300 million broke down. I bought about 30 titles last year in BOGOs and the reciepts all rang them up as 50% off each one, rather than full price + one free.
So would Bd have 65% of that $300 million, or it would it be closer to 50/50?

I wounder if I can write off my HD-DVD player as well as my PS3, clearly Toshiba and Sony were operating as not for profit organizations in 07'.

HDM players = 12% of sold players according to those numbers.

33 million DVD players were sold to U.S. consumers in 2007
4.5 million HD media players have been sold to consumers

can someone do the math on this? That looks pretty good for a first year.

3 million of those hd players are ps3's so the point is moot!

I don't remember you complaining about the Paramount deal so why complain about any deal that Warner might have made? It just seems to me that if you didn't complain about Paramount you have little right to complain about Warner.

Sure i do the BD players are ps3's 95% if bd was to stop you would still have a game console.

It'll be significantly higher in 2008, now that there's only one format.

Yes, I'm sure that Blu-Ray will gain another million users to replace the loss of sold titles on HD DVD for Warner. Yep, I'm sure that will definitely happen at $300+ a player.

They should be kicking themselves in the ass from happiness if they do the same this year. That's why HARDWARE adoption is much more important and HD DVD was the only one of the right path.

HDM is razor/blades model with high hardware prices it will always stay niche.

The BDA just reported that they had $170M in disc sales for 2007.

They are estimating $1B for 2008.

I wounder if I can write off my HD-DVD player as well as my PS3, clearly Toshiba and Sony were operating as not for profit organizations in 07'.

That gave me a chuckle.

Actually if your Inc. you can try to use it as entertainment if your willing to get audited.

I wouldn't try. :D

The BDA just reported that they had $170M in disc sales for 2007.

They are estimating $1B for 2008.

And I keep estimating that I'll make $500k+ this year.. doesn't mean it will happen.. ;)

The BDA just reported that they had $170M in disc sales for 2007.



so between Sony, Paramount/Dreamworks (for 8 months) , Warner, Fox , MGM, and Disney-
7 studios get to split up that $170 million pie.

while on the other side 4 studios get to split the $130 million pie.

hmmmm.

so between Sony, Paramount/Dreamworks (for 8 months) , Warner, Fox , MGM, and Disney-
7 studios get to split up that $170 million pie.

while on the other side 4 studios get to split the $130 million pie.

hmmmm.

Yeah, they HD DVD side did better, but the amounts were so small it didn't matter. The sad fact is that even with all the bluster here and on other forums, BD hasn't even managed to finish off HD DVD, much less get started on DVD. End game? This batch of HDM fails. I just hope it fails quickly enough to get a shot at a real next gen format.

Sure i do the BD players are ps3's 95% if bd was to stop you would still have a game console.That is only true for PS3 owners and using that logic you would still have a DVD upconverter.

well if all these numbers are correct, then there was only a 40 million dollar difference between the two formats.

once more the bd supporters claims of dominance and stomping go up in smoke.

For someone who claims HD DVD isn't dead, it's pretty hypocritical to say HDM is dead. Not surprising, tho.

For someone who claims HD DVD isn't dead, it's pretty hypocritical to say HDM is dead. Not surprising, tho.

In a poll I ran a few months go . . . "Will HDM Be A Niche Format(s)" . . . .over 300 members voted and the results were 50/50 - it was a simple yes or no poll.

That should tell you what to expect in posts on this thread.

In a poll I ran a few months go . . . "Will HDM Be A Niche Format(s)" . . . .over 300 members voted and the results were 50/50 - it was a simple yes or no poll.

That should tell you what to expect in posts on this thread.

I've always believed that and the events of the last few days have not changed my opinion.

Jees.....bitter bitter tears in here...

For those who would like a comparison as far as hardware sales go with DVD's 1997 launch see here

http://www.dvdinformation.com/News/press/072605.html

If I'm reading that right it looks like around 300,000 DVD players were sold in 1997 the first full year of DVD. So if that figure of 4.5 million HD players being sold is correct it looks like HDM is off to a good start and can only get better with the war being over.

For those who would like a comparison as far as hardware sales go with DVD's 1997 launch see here

http://www.dvdinformation.com/News/press/072605.html

If I'm reading that right it looks like around 300,000 DVD players were sold in 1997 the first full year of DVD. So if that figure of 4.5 million HD players being sold is correct it looks like HDM is off to a good start and can only get better with the war being over.


Exactly. Even if that figure includes the PS3 the standalones by all accounts must be close to 2 million. And the press makes it appear that it isn't all right to have a growth market just like dvd or any new technology for that matter. HDTVs took time to take hold and it's still only 35% of the NA market but it's GROWING. The same is to be expected for HDM.

It'll be significantly higher in 2008, now that there's only one format.

It has to, otherwise even Blu-ray might not survive. HDM has no immediate importance for the studios, maybe for the future. The problem is that the future also incudes HD downloads etc. For now, that's us, customers, and I'm not talking about blu or red, who should be worried, because Blu-ray won a battle, not the war: SD DVD still reigns, and still wins that one. I want to watch more HD and I'll get a BD player probably very soon, I find it sad that HD DVD might disappear as I really like the format, but at the same time I really hope the blu camp will know how to appeal customers.

Here's an example: my wife doesn't care one bit if the movie we watch is in high def or not, she doesn't care what upscaling do to a SD DVD on a 1080p TV, she just want to watch movies. Color detail, number of pixels, Dolby TrueHD, etc, means very little to her. BUT, she does like what she sees. That said, I think in order to fully appreciate HDM, people need to understand better what it is ; and the difference over SD is too technical, and even worthless, for a large majority of people. While I have no problem of getting purple, or "full-blu" for instance:p, the most important thing is that HDM in general should prevail ; and that's still not clear to me.

For those who would like a comparison as far as hardware sales go with DVD's 1997 launch see here

http://www.dvdinformation.com/News/press/072605.html

If I'm reading that right it looks like around 300,000 DVD players were sold in 1997 the first full year of DVD. So if that figure of 4.5 million HD players being sold is correct it looks like HDM is off to a good start and can only get better with the war being over.


Don't get high hopes. DVD player sales are mostly selling into a replacement market. The installed base is at least 500m players worldwide.

4.5 million HD players is mostly game machines.

Don't get high hopes. DVD player sales are mostly selling into a replacement market. The installed base is at least 500m players worldwide.

4.5 million HD players is mostly game machines.

Sure it's a replacement market just as DVD replaced VHS. That's usually what new formats do. As for the 4.5 million players being mostly game machines .. where do you get that info from? and even if it's true what difference does it make a player is a player

gnj,

As for the 4.5 million players being mostly game machines .. where do you get that info from? and even if it's true what difference does it make a player is a player

read the article. It said the number included the PS3, which sold over 3 million units, so most of the HDM players are game consoles.

I"m sure millions of people/companies have been on the side line until a winner comes along...this number will increase now - guarantee it!

For those continue to bash BDA group, then continue your purchasing power on HD-DVD. No one is stopping you... Seriously...a lot of people don't care where you spend your money. No one is forcing you to buy high definition.

Smile!

I"m sure millions of people/companies have been on the side line until a winner comes along...this number will increase now - guarantee it!
I'd be willing to bet millions of consumers are sitting on the sidelines saying "who gives a damn.............pppppppffffftttt, HOW much for what may be a bit better?...........you are out of your freaking mind".

That's more the avg consumer at the moment.