How Blu-ray Can Replace the DVD
The process will require some serious investment from the studios.
By Swanni
Washington, D.C. (February 29, 2008) -- Sony, the leading supporter of Blu-ray, has said the new high-def disc will replace the standard-def DVD in the next several years.
Is that possible? After all, standard-def DVD players are in nearly every American home and many people have built up impressive collections of DVD film libraries.
However, now that Toshiba has pulled the plug on HD DVD, it's my view that Blu-ray has an opportunity to become the leading home video format.
So, how can Blu-ray replace the DVD? Here are five steps:
1. Lower Player Prices to Under $200
Blu-ray players now start at $399, which is $300 more than many standard-def DVD players. That's way too high. By the 2008 holiday season, Blu-ray players have to be under $200, preferably around $149. That might require the Blu-ray manufacturers to shave some profits, but it's necessary to attract the masses.
2. Release Some Movies In Blu-ray Only
At some point, the studios will have to start releasing some titles only in Blu-ray. This will encourage people to buy Blu-ray players to see their favorite new releases. Sony, which has its own studio, would be the logical one to begin, perhaps releasing a few movies this holiday season in Blu-only. Then, in 2009, a few other studios could join in.
We're not talking about a bunch of titles going Blu-only in the next year; perhaps 5-10 at the most. But the studios need to start sending a message to consumers that they will eventually need to upgrade to the new format.
3. Target the HD DVD Owners
In a commentary posted here yesterday, I stressed how important it is that Sony reach out to the nearly one million people who have HD DVD players by offering discounts on Blu-ray players. With Toshiba exiting the HD DVD business, this audience is up for grabs. It could become disillusioned with the high-def disc and fall back to standard-def DVDs (and maybe digital downloads.) Or it could decide to embrace Blu and start buying new players and discs. If they choose the latter, it would lead to more positive word of mouth about the high-def disc, which would help attract more customers.
4. Bundle Blu-ray Players With HDTVs
Sony and Sharp have already done this with some sets, but there needs to be an accelerated bundling program from the manufactures and retailers. Every time someone shops for a high-def set, he/she should be encouraged (and given an incentive) to buy a Blu-ray player. This is the ideal time to persuade high-def enthusiasts to switch to Blu-ray.
5. Promote the 'Best' Picture
Blu-ray companies have heavily promoted the format's exceptional picture quality. However, they need to start saying that the picture is better than anything else on the market -- better than cable, satellite, telcos, you name it. (And it is) It's not enough to just say it has a great picture; consumers need to hear that it's the best picture. People are more likely to buy a product if it's regarded as the best available.
The transition from DVD to Blu won't be easy and it will require even more financial sacrifice from Blu supporters such as Sony which are still reeling from money spent in the format war against HD DVD. But I believe that they will be willing to make that investment, having come all this way after the HD DVD battle.
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Sony & Toshiba Should Aid HD DVD Owners
HD DVD's exit will leave a bad taste in the mouths of millions.
By Swanni
Washington, D.C. (February 28, 2008) -- Toshiba has a moral responsibility to provide either a discount or refund for the nearly one million people who now own HD DVD players (standalone and XBox players.)
Toshiba, the leading company behind the HD DVD format, announced last week that it would exit the high-def disc business by the end of March, ceding victory to rival Blu-ray.
The decision means that current HD DVD players will soon be nearly obsolete; yes, they will still 'upconvert' standard-def DVDs, but the studios will stop releasing titles in the HD DVD format in the coming weeks.
Asked at a press conference last week about the current HD DVD audience, Toshiba officials basically shrugged their shoulders and said buyers knew what they were getting into -- a high-def format war that would likely produce a loser.
However, that is unacceptable. HD DVD owners committed their hard earned dollars on a brand new technology, giving Toshiba an opportunity to succeed in the war. But Toshiba seems too broken up with its own misfortune to consider the plight of their customers.
At the least, Toshiba should offer HD DVD owners discounts on related Toshiba products, such as high-def sets.
Likewise, Sony, the company behind Blu-ray, has a responsibility here as well because its participation prolonged the format war, leading to more people buying HD DVD players.
In my view, Sony should offer HD DVD owners a discount on Blu-ray players. This would not only be the right thing to do -- but it would keep a sizable number of high-def disc enthusiasts happy.
It would also send a signal to consumers that investing in a unproven technology is a shared risk, that people will not be left holding the bag.
If Toshiba and Sony fail to act, consumers may think twice -- or three times -- the next time they consider buying a new electronics product.
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Liberty Media Gets DIRECTV: The HDTV Impact
The federal government finally approves the takeover.
By Swanni
Washington, D.C. (February 28, 2008) -- The FCC and U.S. Justice Department this week finally approved Liberty Media's takeover of satcaster DIRECTV.
The approval comes 14 months after Liberty first announced that it struck a deal with former DIRECTV parent News Corp. to take control of the nation's largest satellite TV service.
"This transaction is strategically important, financially attractive and will provide new focus to Liberty Media," Liberty CEO Greg Maffei said in a statement.
Nice words, but what do they mean? And, what impact will the new ownership have on the High-Definition TV industry?
Here are a few likely scenarios:
1. More Original Content
With DIRECTV unable to offer voice and Internet service -- unlike cable and the telcos -- you'll see the satcaster place even more emphasis on its video service, specifically high-def.
Cable and telcos may have the Triple Play, but DIRECTV's current lineup of 90 national HD channels is without equal at this time. And with a new satellite launching this year, it will be able to expand that lineup (national and locally) even more dramatically. High-def now is the company's strongest weapon in its fight for new customers (and to maintain old ones.)
However, instead of just adding more high-def channels in the coming year (although that will happen, too), I think you'll see DIRECTV offer more original HD programming -- shows that are not available on any other TV provider's lineup.
The satcaster is already experimenting with producing original content, such as Project My World, which airs on its channel 101. But I think you'll see more original high-def sports and entertainment programming as a way to attract new subscribers.
2. Merger Talks
John Malone, Liberty Media's chairman, is arguably the industry's leading wheeler-dealer. With DIRECTV now officially under control, look for Liberty to explore merger and partnership talks with several companies, most notably AT&T and rival satcaster Dish Network.
I predicted earlier that DIRECTV will merge this year with Dish and I still think that's a serious possibility. But Liberty might find a partner that no one is even thinking about at this point.
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Who's the Hottest Female In HDTV?
TVPredictions.com sets out to discover which female star stands the test of crystal-clear HD.
By Swanni
Washington, D.C. (February 27, 2008) -- Next month, 64 basketball teams will be chosen to participate in 'March Madness' -- the NCAA college basketball elimination tournament.
But here at TVPredictions.com, we are tipping off our own elimination tournament -- to determine the hottest female star in high-def.
We are calling this tournament...
'HDTV Hottie Hysteria!'
Yes, for the next 31 days, we will post a reader poll here pitting one celebrity babe against another. Then, based on your votes, each winner will move to the next round until only one woman is left standing.
We believe that any woman who's voted hottest in high-def is a hottie indeed. With the high-def picture so clear -- so life-like -- that you can see every facial imperfection, only a truly beautiful woman can possibly win our title as the number one "HDTV Hottie!"
So, let's meet the 32 women who will compete for the crown, as they are seeded by ranking in our four high-def categories.
Plasma Division
1. Angelina Jolie
2. Jennifer Love Hewitt
3. Paris Hilton
4. Jennifer Lopez
5. Jessica Simpson
6. Vanessa Williams
7. Katherine Heigl
8. Keira Knightley
LCD Division
1. Scarlett Johansson
2. Lindsay Lohan
3. Catherine Zeta-Jones
4. Jennifer Garner
5. Natalie Portman
6. Ali Larter
7. Maria Sharapova
8. Roselyn Sanchez
Rear Projection Division
1. Nicole Kidman
2. Jessica Biel
3. Charlize Theron
4. Evangeline Lily
5. Gisele Bundchen
6. Alyssa Milano
7. Cameron Diaz
8. Hayden Panettiere
Front Projection Division
1. Jessica Alba
2. Eva Longoria
3. Heidi Klum
4. Penelope Cruz
5. Anne Hathaway
6. Halle Berry
7. Beyonce Knowles
8. Christina Aguilera
As number one seeds, Jolie, Kidman, Alba and Johansson are the favorites, but like March Madness, we expect a few upsets.
So come back to TVPredictions.com every day for a new match-up!
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Dish Network: 100 Local HD Markets In 2008
The satcaster also plans 100 national HD channels.
By Swanni
Washington, D.C. (February 27, 2008) -- Dish Network said yesterday that it plans to offer 100 national HD channels and local HD service in 100 markets by year's end.
The satcaster said it will launch new satellites this year that will enable it to expand its high-def capacity.
Dish Network CEO Charlie Ergen made the remarks in an analyst call following the release of the company's fourth quarter report.
“I think we expect to be competitive with 100 (HD) channels that anybody else might have and 100 local markets that anybody else might have,” Ergen told the analysts.
Dish Network now has roughly 70 national HD channels and local channels in HD in about 35 markets. Rival DIRECTV now offers 90 HD nationals and local high-def service in almost 80 markets.
In the company's fourth quarter report, Dish acknowledged that satellite launch delays have slowed its subscriber growth. The company needs new satellites to expand its high-def lineup, particularly local service.
Dish yesterday said it fourth quarter net new subscribers were down about 75 percent from the previous year's fourth quarter.
Ergen said the company's first satellite launch will be next month. Once that satellite is operational, Dish will be able to offer local HD service in 10 more markets.
At least two more satellites are scheduled this year, he said.
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DreamWorks Stuck In HD DVD Limbo
The studio says it must abide by its agreement with Toshiba.
By Swanni
Washington, D.C. (February 27, 2008) -- DreamWorks Animation says it plans to release movies in the HD DVD format although Toshiba will soon exit the business.
That's according to an article by Reuters.
Studio officials note that they signed an exclusive deal with HD DVD last August and it seems unclear they can break it without Toshiba's permission.
Toshiba, the main backer of the format, announced last week that it's pulling the plug at the end of March, ceding victory to rival Blu-ray.
"We have a partnership with Toshiba and have an obligation to see this through," DreamWorks CEO Jeffrey Katzenberg told Reuters. "As you know, we have been well-compensated for our support. It really is in their court at this point to really declare what the next step will be."
Paramount signed a similar exclusive deal with HD DVD last August, but apparently was able to break it after Toshiba's announcement. The studio said last week that it will begin soon to release titles on Blu-ray.
DreamWorks told Reuters that it's not certain how to proceed on future titles, including next month's scheduled release of Bee Movie.
"We said (to Toshiba), we have a release coming up on 'Bee Movie.' What would you like us to do?," Katzenberg said.
Analysts told Reuters that they expect the situation to be cleared up by the holiday season.
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Dish Network Blames Sub Drop On HDTV
The satcaster says competition for high-def viewers has risen.
By Swanni
Washington, D.C. (February 26, 2008) -- Dish Network today reported lower-than-expected subscription growth in the fourth quarter and the satcaster cited High-Definition TV as a major reason.
In its fourth quarter report, released today, Dish said it added 85,000 net subscribers, far below what Wall Street analysts had projected.
Lehman Brothers had estimated that the satellite TV service would bring in roughly 167,000 subscribers in the fourth quarter, according to Reuters. And Dish added 350,000 new subscribers during the 2006 fourth quarter.
Dish officials said the housing slowdown was one reason for the sub decrease, but added that the expansion of high-def services from DIRECTV and other TV providers has made it more difficult to attract new customers.
DIRECTV expanded its high-def lineup from nine to 90 channels in the fourth quarter. Dish now has around 70 HD channels, but further expansion has been slowed by delays in new satellite launches.
"Satellite launch delays at DISH Network have slowed its growth of local HD markets, which in turn has delayed its own aggressive retention marketing efforts," the company said in a SEC filing, Reuters reported.
Dish said last month that it plans to launch four new satellites this year to increase its high-def capacity.
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Lawsuit Charges DIRECTV With Receiver Rip-Off
Class action lawsuit says consumers are not told they must return their 'paid-for' set-tops upon cancellation.
By Swanni
Washington, D.C. (February 24, 2008) -- A law firm has filed a class action lawsuit against DIRECTV charging the satcaster with failing to tell customers they must eventually return their receivers -- even if they paid hundreds of dollars for them at retail.
The lawsuit, which was filed in federal court in Los Angeles by the Chicago-based Wexler Toriseva Wallace LLP, also includes CE retailer Best Buy.
The law firm says the companies have not "adequately disclosed" that a customer can not keep his DIRECTV receiver even after paying for it. At BestBuy.com, the satcaster's receivers now range in price from $69 to $199, but DIRECTV has charged more for them in recent years.
DIRECTV considers the set-top purchase a "lease," for which it can also charge additional monthly lease fees.
Like the lease agreement for an automobile, the DIRECTV lease requires the customer to return the receiver when the agreement expires, which is when the customer cancels service.
"The lawsuit was filed on behalf of consumers nationwide, further alleging that consumers instead believe that they own the receivers they purchase from DIRECTV or its retailers, like Best Buy and Circuit City. Only later, according to the suit, do they discover that they must pay lease fees, and return their receivers if they cancel their DIRECTV subscription," Wexler Toriseva Wallace LLP said in a statement.
The lawsuit includes both High-Definition and standard-def receivers.
DIRECTV's web site states that "receivers are at all times property of DIRECTV and must be returned upon cancellation of service or additional fees may apply." However, at the web site and in retail agreements, the return policy is not prominently featured.
DIRECTV spokesman Robert Mercer said Friday that "DIRECTV disputes (the) allegations regarding its lease program and intends to vigorously defend the lawsuit. We do not believe his claims have merit."
Mercer would not comment specifically on DIRECTV's lease agreement.
Mark J. Tamblyn, a partner in Wexler Toriseva Wallace's Sacramento office, said "consumers should be fully advised that their purchases of DIRECTV receivers come with strings. They should not have to discover after paying hundreds of dollars for a receiver that their purchase is more like a rental, requiring continuous payments."
The lawsuit seeks recovery of all lease fees paid, and a judgment declaring that DIRECTV lease is invalid.
The case, filed in Los Angeles, is Case No. CV08-00906 ABC (PJWx).
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Why Blu-ray Won
The final outcome was almost never in doubt.
By Swanni
Washington, D.C. (February 22, 2008) -- Toshiba this week announced that it was exiting the HD DVD business, ending nearly two years of retail war with its high-def disc rival, Blu-ray.
Although the last two years brought many twists and turns, one could argue that the ultimate end was rarely in doubt. Despite an admirable effort from its supporters, such as Toshiba, Universal Studios and Microsoft, HD DVD was a long shot from the get-go.
In fact, you could argue that Blu-ray's victory was almost pre-determined, that it couldn't lose even if it tried.
Why?
When the two formats launched in the spring of 2006, four major Hollywood studios had decided to back Blu-ray exclusively while only one (Universal) backed HD DVD. (The others said they would release films in both formats.)
The Blu-ray studio contingent was led by Sony, which also happened to be the format's parent. Sony's involvement with Blu-ray gave the company tremendous leverage with its fellow studios, helping considerably in garnering their endorsements.
The studio support gave Blu-ray the equivalent of a home field advantage because it meant that eventually more titles would be available in the format. It also meant that with four studios supporting it, Blu-ray would get more marketing dollars and media attention.
Paramount's decision to switch from neutral to HD DVD last August only delayed the inevitable because Blu-ray still had a 4-2 lead among the major studios. Warner's announcement in January that it would drop its neutrality and switch to Blu-ray made it 5-2 -- and that was game, set and match.
Certainly, other factors contributed to Blu-ray's victory, particularly Sony's risky (but successful) decision to put a Blu-ray player inside every Play Station 3. With millions of PS3s in homes, there's no wonder why Blu-ray defeated HD DVD every week in disc sales.
But the studios decided who would win this war -- at the beginning when four endorsed Blu-ray and again in January 2008 when Warner switched to Blu.
So while Blu-ray backers now like to proclaim that consumers made the decision at retail by buying more Blu-ray discs, the real decision was made two years ago in high rise office buildings in Los Angeles.
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News Analysis
Blu-ray Will Defeat Digital Downloads
But some analysts are predicting that consumers will soon switch from hard discs to Net-based services.
By Swanni
Washington, D.C. (February 20, 2008) -- Now that Blu-ray has finally conquered HD DVD in the high-def disc format battle, its supporters apparently have little time to celebrate.
Many leading industry analysts and other pundits are already predicting that digital downloads will soon wipe out Blu-ray and other hard media.
"The format battle often drew yawns from analysts and consumers. Many believe the new disc format will be leapfrogged quickly by Internet-based movie downloads, just as music discs have been increasingly replaced by digital files," The New York Times wrote today.
Companies such as Apple, Microsoft, TiVo, NetFlix and Vudu have (or plan to) launched set-tops enabling consumers to download movies directly to their TVs over high-speed Internet connections.
The new services have been the subject of considerable media buzz. Several technology-based publications have questioned why people would buy or rent a high-def disc when they can download it at home.
Well, as often is the case, the tech media is wrong, basing its assumption on how other tekkies think rather than what the average American thinks.
It will be years -- yes, years -- before downloads replace hard discs (be it Blu-ray or standard-def DVDs) and here's why:
Despite what many technology officials believe, America is not a tech-savvy nation. The old joke in the 1990s about the flashing "12:00" on the living room VCR was funny because people knew it to be true.
Sure, a large percentage of people use Blackberries, iPods and other gadgets. But it took awhile for those products to reach a sizable audience. Americans like to sneak up on new tech products, allowing early adopters to work out the kinks. The strategy is a good one; 3-5 years after a new product is launched, manufacturers have usually made it simpler to use, not to mention much less expensive.
Additionally, many Americans are fearful of embracing any new technology, particularly if its purpose is not intuitively clear. I call this the "next door neighbor" group; they won't try a new product unless they see the next door neighbor use it -- and rave about it.
So here comes digital downloads.
For starters, in most cases, downloading movies onto the TV requires the consumer to buy a brand new set-top. That's a deal killer for many Americans who are suffering from set-top fatigue. They are tired of stacking box after box next to their televisions -- not to mention paying for them.
The "set-top fatigue" problem has also contributed to the slow growth of the high-def disc players, although the format war was a bigger contributor.
(The Blu-ray player, however, has a better chance of overcoming set-top fatigue than a download set-top because it's so similar to the standard-def DVD player, which scores of millions already own and feel comfortable with. Still, I predict that Blu-ray sales won't really take off until people start to replace their standard-def DVD players with Blu-ray players, rather than buying one as a companion box.)
Second, digital downloads require installing a high-speed Internet connection and/or adapter equipment to the TV. Broadband use in America is increasing rapidly, but studies have shown that most people are still using high-speed lines at home for the basics such as Internet browsing.
There isn't a lot of appetite yet for using Broadband for more exotic services -- particularly digital download features that offer movies that can already be retrieved from most cable On Demand menus with just a few clicks of the remote.
And third, have you see the picture from a digital download? The standard-def download is not up to the quality of a standard-def DVD. And the "high-def" download is not even really HD; it's closer to what you would see from a DVD "upconverter" player. (To make matters worse, it usually takes hours to download a high-def movie.)
So, digital downloads require:
Buying a new set-top, installing new equipment for the Net connection -- and when watching a high-def movie -- waiting hours for the download to complete.
And what do you get for your trouble?
A sub-par picture.
Meanwhile, the Blu-ray player requires:
Buying a new set-top -- and that's it.
And what do you get for that effort?
A crystal-clear, eye-popping real HD picture. And you won't have to wait for hours to watch it.
So, the Blu-ray industry is a long way from becoming a living room standard. But the real obstacle in its path is the standard-def DVD player, not digital downloads.
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Toshiba Drops HD DVD: 10 Winners & Losers
Which companies will benefit from Toshiba's decision?
By Swanni
Washington, D.C. (February 19, 2008) -- Toshiba's announcement today that it will exit the HD DVD business was largely expected ever since Warner Bros decided last month to endorse Blu-ray, its high-def disc rival.
However, the company's decision is likely to have a long-lasting impact on several companies -- and the high-def industry as a whole.
So, here is our look at the 'Winners & Losers' of HD DVD's departure -- the companies that will benefit most and least from Toshiba's announcement.
Winner
Sony
The electronics giant finally wins a format war -- two decades after its Betamax videotape format was wiped out by VHS. (Sony was the leading backer of the Blu-ray format.) Now Sony, which makes Blu-ray players and produces movies released on Blu-ray, stands to gain billions in manufacturing, disc and licensing revenue. The company may also see a boost in Play Station 3 sales; the game console has a Blu-ray player inside.
Loser
Toshiba
The company invested hundreds of millions in HD DVD (if not more) and came up empty. There's no pretty way to say it -- Toshiba is the biggest loser here. To make matters worse, Toshiba says it won't even manufacturer Blu-ray players; apparently it will ignore the high-def disc industry, at least for now.
Loser
HD DVD Owners
If there's a bigger loser than Toshiba, it's the near one million people who bought HD DVD players, some at prices into the hundreds of dollars. The studios will soon stop releasing films on HD DVD, making the boxes mere DVD 'upconverter' players (or door stops.)
Winner
Warner Bros.
When the history of the Blu-ray/HD DVD war is written, Warner will get principal credit for delivering the victory to Blu-ray. The studio's decision last month to endorse Blu-ray tipped the scales on its behalf.
Loser
Microsoft
Some might argue that Microsoft merely wanted to prolong the high-def format war so it could promote digital downloads. But the company spent considerable money to keep HD DVD going and some analysts are saying that its XBox 360 could suffer because it supports HD DVD and not Blu-ray. HD DVD's loss is also another defeat for Microsoft in the TV category (Web TV, Interactive TV, Ultimate TV, etc.)
Winner
Paramount
Toshiba (and Microsoft?) reportedly paid Paramount $150 million last August to endorse HD DVD. Now, the studio can keep the money (we presume) and start releasing films on Blu.
Winners
High-Def Owners
With one format, both Blu-ray player and disc prices are likely to fall. (Blu-ray supporters won't have to invest money on defeating HD DVD; it can concentrate on capturing new customers.) And consumers can now buy a Blu-ray player without fear of picking the wrong format.
Winner
Retailers
Likewise, CE retailers can expect more consumer interest in Blu-ray, which should lead to greater sales.
Loser
Universal
The studio was an outspoken supporter of HD DVD, but now will have to get on the Blu bandwagon. The defeat is more of a public relations setback than a monetary one, but both hurt.
Loser
The Standard DVD
While the standard-def DVD reigns supreme now, the format war's end will allow the studios to start transitioning to Blu-ray. It will be awhile before new movie releases are only available in Blu-ray, but it may be sooner than you think. Don't be surprised if some new releases get Blu-only designations as early as 2009.
Winner
HDTV Manufacturers
If Blu-ray sales increase, it should spark even greater interest in high-def sets.
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It's Over: Toshiba Drops HD DVD
The company says it will close the business by the end of the next month
By Swanni
Washington, D.C. (February 19, 2008) -- Toshiba today made it official by announcing that it's abandoning the HD DVD business.
The announcement came following weeks of rumors that Toshiba, the leading backer of the high-def disc format, would throw in the towel.
The HD DVD format, which launched in the spring of 2006, lagged behind its rival Blu-ray in both player and disc sales for the last few months. And in recent weeks, Warner Bros. and several retailers opted to support Blu-ray exclusively in the high-def format war.
Toshiba's decision now clears a path for Blu-ray supporters, led by Sony, to persuade consumers to adopt the new high-def disc. Research has shown that people were reluctant to buy either format because of the war.
Toshiba said it hoped to end the HD DVD business by the end of next month. However, it would continue to provide service for existing products.
"This was a very difficult decision to make ... but when we thought about the trouble we would cause to consumers and our partners, we decided it was not right for us to keep going with such a small presence," Toshiba Chief Executive Atsutoshi Nishida said today, as reported by Reuters.
The wire service writes that Toshiba believes that company profits will increase once the HD DVD business is closed.
The company said it had "absolutely no plans" to make Blu-ray players.
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Survey: HD DVD Exit Could Spark Blu-ray Sales Surge
Online poll by TVPredictions.com suggests many consumers have been waiting for the format war to end.
By Swanni
Washington, D.C. (February 17, 2008) -- Blu-ray player sales could see a sharp spike if rival format HD DVD drops out of the race as expected.
An online poll conducted this weekend by TVPredictions.com found that 43 percent of respondents would buy a Blu-ray player if Toshiba pulls the plug on HD DVD.
News reports this weekend have said Toshiba is planning to stop production on new HD DVD players and cede defeat to Blu-ray in the format battle.
The TVPredictions.com poll, which attracted 2,499 participants, found that only 20 percent said they would not buy a Blu-ray player if HD DVD drops out.
Thirty-six percent of respondents said they already had a Blu-ray player.
While the poll is not scientific, it offers a likely snapshot of the high-def audience at this time. TVPredictions.com, which gets approximately 20,000 visitors each business day, focuses exclusively on high-def issues and thus attracts a strong HD readership.
To date, both Blu-ray and HD DVD players have generated few sales compared to standard-def DVD players. However, Blu-ray supporters have said the new format will start to challenge the SD DVD after the format war is settled.
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Wal-Mart to Sell Blu-ray Only
The retailer says HD DVD will be phased out.
By Swanni
Washington, D.C. (February 15, 2008) -- Wal-Mart today became the latest retailer to back Blu-ray exclusively in the high-def format war against HD DVD.
The discount retailer said by June that it would sell only Blu-ray discs and players in its 4,000 stores. Until then, it would begin phasing out HD DVD products.
Earlier this week, Best Buy said it would recommend that its customers buy Blu-ray, although it would continue to sell some HD DVD products. And NetFlix said it would only carry Blu-ray by year's end.
Combined with last month's endorsement of Blu-ray by Warner Bros., this week's moves make it increasingly difficult for HD DVD to stay in business.
"We've listened to our customers, who are showing a clear preference toward Blu-ray products and movies with their purchases," Gary Severson, Wal-Mart's senior vice president said.
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Comcast: 50-60 HD Channels By Year's End
The cable operator says it's the "leading provider" of high-def.
By Swanni
Washington, D.C. (February 14, 2008) -- Comcast today said a "typical" local Comcast system will carry between 50 and 60 HDTV channels by year's end.
Comcast now offers less than 30 HD channels in most markets. But the cable operator said new technologies and analog channel reclamation projects (removing analog channels from the lineup) will free up more space for high-def.
Comcast's top executives made the HD channel disclosure today in an investors call with Wall Street analysts following the release of its fourth quarter report.
During the discussion, Comcast President Steve Burke said the cable operator is "the leading provider of high-def programming in the world."
DIRECTV has stated that it's the nation's top high-def T service, having expanded its high-def lineup from nine to about 90 channels late last year.
But Burke said the cable op's HD On Demand lineup now more than makes up for the channel shortage.
"We have expanded our high-def offerings and we'll continue to do so in 2008," he said. "We believe that customers really care about choice; HD choices and not necessarily channels. People watch choices, not linear channels. So, we have been adding On Demand options as well as channels."
Burke, however, said a typical Comcast system will have 50 to 60 HD channels by year's end.
"In parallel, we have increased high-def On Demand choices from 130 to nearly 300 today, and we expect to offer over 1000 High-Def choices On Demand by the end of this year," he said.
Comcast CEO Brian Roberts added that "we are committed to delivering truly superior High-Definition television and unmatched interactive TV."
Comcast also said 42 percent of its digital cable customers subscribed to High-Definition or Digital Video Recording services at the end of 2007.
That's an increase of roughly 16 percent from the end of 2006 when 36 percent of digital cable customers took HD and/or DVR service. The 42 percent of the digital cable base represents about six million customers.
Unlike some cable and satellite providers, Comcast does not break down how many subscribers have High-Definition TV and how many have Digital Video Recorders. They include both in the same category.
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DIRECTV: Two More HDTV Satellites Planned?
The satcaster reveals that it might launch yet another satellite after a scheduled March 2008 launch.
By Swanni
Washington, D.C. (February 14, 2008) -- DIRECTV last year launched a new satellite for High-Definition programming and it's scheduled to launch another one next month.
However, the satcaster revealed yesterday that a third satellite could be in the works to expand high-def capacity even further.
Chase Carey, DIRECTV's CEO, told Wall Street analysts in an investors call on the company's fourth quarter results that it's now spending money on developing the third satellite, called D12. (Next month's satellite is D11.)
"We do have D11 and D12 spending (in the company's capital expenditures)," he said. "We haven’t really made a final decision on the D12 launch plans so we don’t have those finalized yet."
DIRECTV's interest in expanding high-def capacity even further would be understandable with the satcaster disclosing yesterday that its new HD lineup helped reduce churn and attract new subscribers in the fourth quarter.
The satcaster increased its HD lineup from nine to roughly 90 channels in last year's fourth quarter. However, the company would like to increase capacity for future HD channel launches and more local high-def.
The D12 could also be used for variety of other bandwidth-heavy services.
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HD DVD: Time's Up
The format's ride is over. It's time to get off.
By Swanni
Washington, D.C. (February 13, 2008) -- HD DVD has become the Mike Huckabee of technology.
Like the GOP presidential candidate, the high-def disc format is a plucky challenger that has charmed and entertained many by offering something different.
But also like Mike, HD DVD now faces impossible odds, prompting calls for its retreat from the battleground
I won't comment on whether Huckabee should drop out, but it's definitely time for HD DVD to listen to the chorus and call it a day.
At this point, I can envision no scenario in which HD DVD can emerge victorious over its high-def disc rival Blu-ray.
The latter format now has the backing of five major studios compared to HD DVD's two; NetFlix, Best Buy and Blockbuster have endorsed (or semi-endorsed) Blu-ray; and Blu-ray player and disc sales are far outpacing HD DVD.
Huckabee, an ordained minister, says he majored in miracles, not math. But in the cold world of retail, there are no miracles -- only math. And there's no way for the numbers to add up for HD DVD.
(And there's no way that a major studio or two will now abandon Blu-ray and endorse HD DVD exclusively.)
So, Toshiba, HD DVD's leading supporter, should immediately begin peace talks with Sony, the biggest Blu-ray backer. (If it hasn't done so already).
I believe there's room for a compromise here. In returning for exiting the scene now, Toshiba might be able to get a small slice of future Blu-ray profits, at least by manufacturing its own Blu-ray players.
But if Toshiba waits much longer, the Blu-ray backers will have less reason to make a deal. The sales numbers -- and retail and studio endorsements -- will be so overwhelming that HD DVD will have no leverage.
Toshiba, make the deal -- now. And put HD DVD to sleep for good.
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HD DVD: NetFlix Decision 'Unfortunate'
The format's promotional group issues a brief response.
By Swanni
Washington, D.C. (February 13, 2008) -- The HD DVD high-def disc format was hit by a double barrel of trouble on Monday when NetFlix and Best Buy sided with its rival Blu-ray.
The HD DVD Promotional Group issued a brief statement yesterday calling the NetFlix decision "unfortunate" -- and trying to soften the Best Buy announcement by saying the retailer would continue to carry some HD DVD products.
Here's the statement:
"We have long held the belief that HD DVD is the best format for consumers based on quality and value, and with more than 1 million HD DVD players on the market, it's unfortunate to see Netflix make the decision to only stock Blu-ray titles going forward. While the Best Buy announcement says they will recommend Blu-ray, at least they will continue to carry HD DVD and offer consumers a choice at retail."
NetFlix, the by-mail DVD rental service, said it would start phasing out HD DVDs, dropping the format entirely by year's end.
Best Buy, the nation's leading CE retailer, said it would recommend that its customers buy Blu-ray, but it would continue to stock some HD DVD players and discs.
In recent weeks, sales of Blu-ray players and discs have far outpaced HD DVD and Warner Bros. announced last month that it would stop releasing movies in HD DVD this May.
The Warner decision, which gives Blu-ray a 5-2 major studio advantage over HD DVD, has prompted predictions that HD DVD will lose the high-def disc format war.
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Is DIRECTV's HD Capacity Maxed Out?
The satcaster may need a new satellite to expand its high-def lineup further.
By Swanni
Washington, D.C. (February 12, 2008) -- DIRECTV left High-Definition viewers breathless last fall when it expanded its HD lineup from nine channels to roughly 90 over a three month period.
However, since late December, the satcaster has not added a high-def channel, other than an in-house channel, called The 101.
How come? Are there no HDTV channels left to add?
No. The satcaster's satellite capacity may simply be maxed out, or getting close to it.
DIRECTV had planned last year to launch two satellites (the D10 and D11) for high-def and other services. Combined, the two satellites would give it the capacity for 150 national HD channels and more than 1,500 local high-def channels.
But DIRECTV was forced to delay the launch of the D11 when Sea Launch, the company it uses for rocket launches, suffered a setback when one of its satellites exploded at liftoff.
At the time (late January 2007), DIRECTV said the first satellite, D10, would still provide the capacity to deliver 100 national HD channels by year's end, which was the company's stated goal.
Although it failed to reach the 100 mark, it came close with roughly 90 HD channels at the end of the year.
But now, DIRECTV apparently has little room for more and, consequently, high-def fans will likely have to wait until the D11 satellite is operational before they can expect another significant increase in HD channels.
Additionally, subscribers still looking for local HD service from DIRECTV may not see it until the second satellite is ready.
The D11 is scheduled for launch next month, which means it could be operational sometime in late May or earlier.
Until then, you may see a smattering of new HD channels from DIRECTV, but nothing like the explosion of the fall of 2007.
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Best Buy to 'Focus' On Blu-ray
The retailer says it will feature Blu-ray products, but will still carry some HD DVD items.
By Swanni
Washington, D.C. (February 11, 2008) -- Best Buy late today gave Blu-ray a semi-endorsement over HD DVD in the high-def format war.
The retailer said that it will recommend that its customers choose Blu-ray over HD DVD, according to an article by Reuters.
But Best Buy added that although it would prominently feature Blu-ray discs and players in stores, it would still carry some HD DVD items.
"Because we believe that Blu-ray is fast emerging as that single format, we have decided to focus on Blu-ray products," Best Buy COO Brian Dunn said in a statement.
The Best Buy news follows an earlier announcement today from NetFlix that it would back Blu-ray exclusively by year's end. The twin announcements could put more pressure on Toshiba, the leading supporter of the HD DVD format, to drop out.
Best Buy said it would place more emphasis on Blu-ray at retail starting in March.
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NetFlix to Back Blu-ray
The by-mail DVD rental service says the industry has picked a winner.
By Swanni
Washington, D.C. (February 11, 2008) -- NetFlix today drove another nail in HD DVD's coffin by announcing it will support Blu-ray exclusively in the high-def disc format war.
The by-mail DVD rental service, which has more than six million subscribers, has offered movies in both HD DVD and Blu-ray. However, the company today said the industry has "picked a winner" in Blu-ray.
NetFlix noted that the majority of the major Hollywood studios have decided to support Blu-ray exclusively, with Warner Bros. last month the most recent one to do so.
"As of (NetFlix) will purchase only Blu-ray discs and will phase out by roughly year's end the alternative high-def format, HD DVD, developed by Toshiba," the company said in a release.
NetFlix officials said the format war has slowed consumer acceptance of the new high-def disc.
"The prolonged period of competition between two formats has prevented clear communication to the consumer regarding the richness of the high-def experience versus standard definition," said Ted Sarandos, chief content officer for Netflix. "We're now at the point where the industry can pursue the migration to a single format, bring clarity to the consumer and accelerate the adoption of high-def. Going forward, we expect that all of the studios will publish in the Blu-ray format and that the price points of high-def DVD players will come down significantly. These factors could well lead to another decade of disc-based movie watching as the consumer's preferred means."
NetFlix said the majority of its high-def disc users have opted to rent Blu-ray over HD DVD. The company says it now stocks more than 400 Blu-ray titles.
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Study: Digital TV Switch May Rob Millions of Signals
Market research firm says the government is underestimating the problem.
By Swanni
Washington, D.C. (February 11, 2008) -- A new study by market research firm Centris says roughly six million people with Digital TV receivers may still be unable to watch TV next year.
The nation is scheduled to switch to all-digital signals on February 17, 2009. But Centris says that gaps in broadcast coverage areas could mean that 5.9 million homes would receive fewer channels than they do now.
Additionally, even viewers who buy Digital TV converters could also experience signal disruption -- and may be forced to get off-air antennas even if they subscribe to a cable or satellite service.
The group adds that the federal government is downplaying the difficulties in making the switch from analog to digital.
On February 17, 2009, all local broadcasters must switch their analog signals to digital which means viewers will need a Digital TV, a digital converter box or a pay TV subscription to watch television.
The feds are offering two $40 coupons for consumers to buy the converter boxes, which are expected to range in price from $40 to $70. The boxes will enable an analog TV to display the new digital signals.
Although federal officials have said the converter boxes should ensure no signal disruption, Centris said its study found that digital signals will not travel as far as believed, particularly in areas populated by trees and mountains.
The company estimates that as many as 10 percent of homes in St. Louis could lose digital reception due to area hills, with the Philadelphia area losing five percent.
"For the people with rabbit-ear antennas, I would say at least 50 percent won't get the channels they were getting," the study said, according to the Boston Globe.
The Centris study adds more fuel to the argument that the Digital TV transition will leave millions without TV next year. Some lawmakers have also expressed fear that seniors and low-income residents will not hear about the transition and therefore fail to get new Digital TVs or digital converter boxes.
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DIRECTV Adds Local HD to 4 Markets
The satcaster now has local high-def in 76 cities.
By Swanni
Washington, D.C. (February 8, 2008) -- DIRECTV has added local High-Definition TV channels to four new markets.
With the addition, the satcaster says local HD is now available in 76 cities, representing nearly 76 percent of U.S. TV households.
DIRECTV is expected to launch a new satellite this spring that will expand its capacity for local HD.
The new markets now receiving local HD channels are:
Paducah, Kentucky
The following broadcast networks are now available in HD: KFVS/CBS, WPSD/NBC, KBSI/FOX and WSIL/ABC.
Wichita, Kansas
The following broadcast networks are now available in HD: KAKE/ABC, KWCH/CBS and KSAS/FOX. DIRECTV says it's still working to add the remaining broadcast channels, such as NBC.
Louisville, Kentucky
The following broadcast networks are now available in HD: WHAS/ABC, WLKY/CBS, WDRB/FOX and WAVE/NBC.
Cedar Rapids-Waterloo, Iowa
The following broadcast networks are now available in HD: KGAN/CBS, KFXA/FOX and KWWL/NBC. DIRECTV says it's still working to add the remaining networks.
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NetFlix Could Raise High-Def DVD Prices
The by-mail rental service says a format resolution could increase demand.
By Swanni
Washington, D.C. (February 7, 2008) -- NetFlix could raise rental prices on High-Definition DVDs if there's an end to the format war between Blu-ray and HD DVD.
That's according to an article by Video Business.
NetFlix currently allows subscribers to include Blu-ray and HD DVD discs in its regular monthly rental plan; the inclusion of the high-def discs does not require an extra fee.
However, Barry McCarthy, NetFlix's chief financial officer, says an end to the Blu-ray/HD DVD format war could increase demand for the discs, causing the company to raise prices. Some analysts have said Blu-ray will emerge as the single format before year's end.
“If a winner emerges and we experience some margin compression if a large number of subscribers rent in high-def, we’ll weight the options of increasing prices,” McCarthy said, according to Video Business.
The publication reports that McCarthy made his comments at the Thomas Weisel Partners Technology, Telecom & Internet Conference in San Francisco this week.
The high-def disc industry is already an issue with NetFlix with the company telling TVPredictions.com last month that it's having trouble meeting demand. Consequently, NetFlix subscribers have had to wait weeks for some new Blu-ray and HD DVD releases.
NetFlix says it hopes the high-def disc shortage will end shortly.
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Time Warner: 53 HD Channels Signed Up
The cable op offers a bold forecast for future high-def launches.
By Swanni
Washington, D.C. (February 7, 2008) -- If you're a Time Warner Cable subscriber, you can expect more High-Definition in the near future. Lots more.
That's according to Time Warner's top executives who commented yesterday on the company's HD plans during an investors call with Wall Street analysts.
COO Landel Hobbs told the analysts that the cable service now has carriage agreements with 53 high-def channels -- and deals with an additional 20 channels "pending."
Hobbs said some Time Warner systems, such as Albany and San Antonio, are now offering more than 40 HD channels. But more HD channels are expected to be added throughout the company's footprint.
The cable operator is rolling out a new technology called Switched Digital Video (SDV) that will enable it to expand its high-def capacity.
"Switching works and it will allow us to launch relative HD content as it comes available and as we conclude deals with our programmers," Hobbs said, adding that SDV will be installed in every division that "needs it" by year's end.
Hobbs did not specify which high-def channels will be added in the future. But he said the cable operator is prepared to do battle with other providers, such as DIRECTV, which have recently increased their HD lineups.
"HD has become a key component for some of our competitors marketing but we are not prepared to give ground in the HD battle," he said. "We plan to deliver all of the best HD programming choices -- the ones our customers actually want, not some arbitrary number of channels without regard for quality or whether they actually exist for that matter."
The company also revealed that it will offer up to 200 high-def movies via On Demand by year's end; it now has 50 HD movies through On Demand.
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