Washington, D.C.
(February 25, 2007)
-- Blu-ray HDTV DVDs outsold rival HD-DVD by a two to
one margin in January, according to Nielsen's home video
unit.
And Blu-ray players are now in roughly one million homes (including PlayStation 3 units), far more than the number of HD-DVD units, according to industry reports.
With the latest numbers, you can understand why Sony, which backs the Blu-ray format, is declaring victory in the biggest video format war since Beta vs. VHS.
“The message that we’re going to put out to the consumer now is, now it is safe to make a choice,” says Sony Pictures Home Entertainment President David Bishop. “No more fence-sitting is needed.”
And Blu-ray players are now in roughly one million homes (including PlayStation 3 units), far more than the number of HD-DVD units, according to industry reports.
With the latest numbers, you can understand why Sony, which backs the Blu-ray format, is declaring victory in the biggest video format war since Beta vs. VHS.
“The message that we’re going to put out to the consumer now is, now it is safe to make a choice,” says Sony Pictures Home Entertainment President David Bishop. “No more fence-sitting is needed.”
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But Video Business reports that Toshiba, which is behind the HD-DVD format, is not ready to concede and is planning a number of initiatives to level the playing field.
For starters, Circuit City, which has rarely carried Toshiba products in its electronics stores, has begun offering Toshiba's second-generation HD-DVD players. (The retailer has sold Blu-ray players since they were launched last spring.) In addition, Toshiba has partnered with Circuit City to hold showcases for the HD-DVD format at selected stores.
“Circuit City has become a very strong partner,” Jodi Sally, vice president of marketing for Toshiba America Consumer Products Digital A/V group, told the publication. “We’ve already done over 200 demos at Circuit City, which we started at the end of January. It was always our intention to expand our retail distribution.”
Sally told Video Business that sales of Toshiba's second generation players have already passed sales of the company's first HD-DVD series which was introduced last spring. However, she refused to provide sales numbers.
Also likely on the horizon: A $100 price cut on the second-generation HD-DVD players, which now start at $499. At $399, Toshiba's unit would cost up to $600 less than some Blu-ray players.
“You’ll see the lower pricing in 30 to 60 days,” one industry source told Video Business. "For Toshiba to hit the sell-through numbers that it wants, I expect to see a base level of $299 this fall.”
HD-DVD supporters hope the lower prices -- and improved industry partnerships -- will keep the battle going.
“It’s not like the consumer has spoken,” Best Buy spokesman Brian Lucas told Video Business. “The numbers are still really small, and it’s still early in the game.”
Click TVPredictions.com to see today's Swanni Sez.
© TVPredictions.com
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But Video Business reports that Toshiba, which is behind the HD-DVD format, is not ready to concede and is planning a number of initiatives to level the playing field.
For starters, Circuit City, which has rarely carried Toshiba products in its electronics stores, has begun offering Toshiba's second-generation HD-DVD players. (The retailer has sold Blu-ray players since they were launched last spring.) In addition, Toshiba has partnered with Circuit City to hold showcases for the HD-DVD format at selected stores.
“Circuit City has become a very strong partner,” Jodi Sally, vice president of marketing for Toshiba America Consumer Products Digital A/V group, told the publication. “We’ve already done over 200 demos at Circuit City, which we started at the end of January. It was always our intention to expand our retail distribution.”
Sally told Video Business that sales of Toshiba's second generation players have already passed sales of the company's first HD-DVD series which was introduced last spring. However, she refused to provide sales numbers.
Also likely on the horizon: A $100 price cut on the second-generation HD-DVD players, which now start at $499. At $399, Toshiba's unit would cost up to $600 less than some Blu-ray players.
“You’ll see the lower pricing in 30 to 60 days,” one industry source told Video Business. "For Toshiba to hit the sell-through numbers that it wants, I expect to see a base level of $299 this fall.”
HD-DVD supporters hope the lower prices -- and improved industry partnerships -- will keep the battle going.
“It’s not like the consumer has spoken,” Best Buy spokesman Brian Lucas told Video Business. “The numbers are still really small, and it’s still early in the game.”
Click TVPredictions.com to see today's Swanni Sez.
© TVPredictions.com
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Phillip Swann is president and publisher of
TVPredictions.com. He has been quoted in dozens of
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Fox News, Inside Edition, The New York Times, The
Washington Post, The Chicago Tribune, The Financial
Times, The Associated Press and The Hollywood
Reporter. He can be reached at
swann@tvpredictions.com
or at 703-505-3064.
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