High-def formats reach 1 million units

Blu-ray gets to milestone quicker, but HD DVD player sales pick up speed

By Jennifer Netherby -- Video Business, 4/26/2007

APRIL 26 | In what is becoming an almost weekly game by high-definition DVD backers of proving their format’s dominance, the Blu-ray Disc Assn. was quick to announce this week that the format had surpassed 1 million disc sales since launching last June.

However, days later, HD DVD backers sent out a rival press release, noting that HD DVD sales had reached 998,000 units, a mere 2,000 shy of Blu-ray’s mark and evidence that both formats are still very much in the race.

Since the start of this year, momentum has been on Blu-ray’s side, helped by sales of Sony’s PlayStation 3. The majority of high-def disc sales, roughly 70%, have been on Blu-ray since January, according to the Blu-ray Disc Assn.

“It’s exactly what we’ve said all along would happen—the strong support for Blu-ray among movie studios and equipment manufacturers means that consumers have more choices when it comes to players and titles. And they’re choosing Blu-ray by an ever-increasing margin,” said Andy Parsons, chair of the Blu-ray Disc Assn.’s U.S. promotion committee and senior VP of new product development at Pioneer Electronics.

But HD DVD backers note that sales continue to grow on their format and have started to close the gap with Blu-ray.

Since Toshiba slashed the price of its bottom-line HD DVD player to $399 on April 1, sales have picked up, and Toshiba’s HD DVD players are outselling Blu-ray players four-to-one, said Ken Graffeo, Universal Studios Home Entertainment executive VP of HD strategic marketing.

“Price is important,” Graffeo said. “We’re seeing very healthy increases [on HD DVD movie sales]. That really correlates to player sales.”

HD DVD backers continue to tout high attach rates, with the average HD DVD owner buying 28 to 30 movies a year, not including owners of the Xbox 360 HD DVD add-on drive.