Toshiba delays HD DVD players

UPDATE: Launch pushed back to April to coincide with software debut

By Jennifer Netherby and Susanne Ault -- Video Business, 3/24/2006

MARCH 24 | Toshiba is delaying its release of HD DVD players until studios put out movies in the format, pushing HD DVD’s launch back to mid-April and giving it a slim one-month lead before rival high-definition format Blu-ray launches.

Toshiba isn’t setting a firm release date, but will ship its players to retail in time for Warner Home Video’s April 18 release of movies on the format, said Jodi Sally, VP of marketing for Toshiba’s Digital Audio and Video Group.

“We’re synchronizing the launch date of players with the release of software to maximize exposure of the format,” Sally said.

Warner is the only studio so far to announce a street date for HD DVD releases.

Last week, the studio said technical issues would stall its launch of HD DVD movies from a planned March 28 release to April 18, when it will put out Million Dollar Baby, The Last Samurai and The Phantom of the Opera.

The last-minute HD DVD delays have disrupted some retailers’ merchandising plans and left many in the dark on when players will be available.

Tweeter pulled radio advertisements for the players planned for the final week of March and instead will advertise Sony’s flat-panel TVs, said Frank Roshinski, Tweeter VP, general merchandising manager for video.

The retailer has received about 50 pre-orders for Toshiba players across its 200 stores. The company plans to similarly offer software pre-orders but is waiting for solicitation information from Warner, as are some other retailers and distributors.

Ultimate Electronics has decided not to take pre-orders on HD DVD movies in the event that there are further delays. It has been taking pre-orders on HD DVD players but didn’t disclose figures.

“You have to be reasonably flexible,” Ultimate Electronics senior VP of merchandising Jim Pearse said. “There isn’t much we can do to change the situation. We just have to communicate with our stores and consumers.”

All 32 Ultimate stores will carry HD DVD players. They will be “conservatively stocked,” said Pearse, at fewer than 10 per outlet.

So far, no retailers appear to be taking pre-orders for Warner HD DVD titles. WalMart.com had been accepting pre-orders for many Warner HD DVD movies but stopped shortly before Warner announced its software delay March 16. By last week, the site had yet to re-list titles with new April street dates.

BestBuy.com and Amazon.com also were not taking Warner title pre-orders. Both were accepting pre-orders on Toshiba hardware, but it was unclear when customers could expect to receive players.

BestBuy.com has an estimated shipping date of between March 27 and April 4 for the players. However, a spokesman with Best Buy said the chain has no indication that the players will be available next week and said the company was still trying to figure out the launch timing.

HD DVD’s delay comes as Toshiba reps are in the middle of a 40-city tour, showing off the new players to consumers at electronics retailers. Last week, reps at a show in the Los Angeles area said a delayed movie launch wouldn’t affect the player launch.

Samsung, the first electronics company to release Blu-ray players, said last week it is on track to introduce its players May 23 tied to Blu-ray movie releases from Sony Pictures Home Entertainment and Lionsgate.

Meanwhile, Sony’s Blu-ray player pre-orders have been given a high profile at retail since Sony unveiled its first player last week and announced a pre-launch campaign. BestBuy.com and CircuitCity.com have links to the Sony Blu-ray players front and center on their main home pages.

Tweeter’s Roshinski wondered if HD DVD is biting itself in the foot as it launches.

“My only concern is that [HD DVD] is diminishing whatever lead time they had over Blu-ray,” Roshinski said. “What kept us from picking one side or the other is that HD DVD was going to be so far in front. But I’m wondering what foothold [HD DVD] is going to have. There is just a 35-45 day lead time before Samsung Blu-ray players are expected.”