HD DVD set-top player sales rebound
Promotional price cuts back on
By Susanne Ault -- Video Business, 1/29/2008
JAN. 29 | UPDATED: Down but not out, HD DVD backers will promote the format during the Super Bowl and at the Sundance Film Festival as price cuts bolstered player sales in January.
HD DVD hardware totaled about 33% of all high-definition set-top unit sales for the week ended Jan. 19, according to NPD Group data, still far behind Blu-ray Disc’s 63%, but a significant bounce from the prior week when Blu-ray commanded 90% of high-def player purchases and HD DVD just 7%.
NPD analyst Ross Rubin said HD DVD’s sales jump likely had more to do with consumers’ sensitivity to pricing than any statement on the format war. Toshiba instituted $100 to $200 price cuts on its HD DVD players starting Jan. 13.
“We’ve seen a consistent trend of the market responding to changes in price and promotion by both camps,” Rubin said. “So you’ll see a significant shift [in sales one way or the other] in response to the end of a promotion or the beginning of a new promotion.”
NPD analyst Stephen Baker earlier said heavy Blu-ray promotions during early 2008 contributed to that format’s huge surge during Jan. 5 to Jan. 12.
Rubin noted that consumers continue to overwhelmingly choose upconverting standard-def DVD players over more expensive Blu-ray or HD DVD set-tops. Collectively, high-def set-tops, including dual-format models, encompass less than 10% of overall DVD player sales.
Toshiba is working to keep some momentum and is scheduled to run a 30-second Super Bowl ad spot hyping its HD DVD players.
Toshiba marketing VP Jodi Sally said the company’s HD DVD marketing will continue past the Super Bowl with “additional commitments to broadcast, print and radio through 2008.”
“We still feel this [format] represents a significant value to the consumer,” said Sally. “With a $149 price [for the entry-level HD-A3], you’ll get two free HD DVDs in the box, five movies by mail, and it supports all your standard DVDs, where they are upconverted to near high-def quality. There is no risk to the consumer.”
During the Sundance festival Jan. 17-27, Microsoft HD DVD evangelist Kevin Collins staged several format meet-and-greets for celebrities and filmmakers, including director Morgan Spurlock and actor Dennis Hopper. Collins was hoping to convince Spurlock and Hopper about the advantages of HD DVD Web-enabled interactivity capabilities, to push them to eventually release their Sundance films in the format. Spurlock premiered documentary Where in the World is Osama Bin Laden? at the festival, and Hopper stars in Sleepwalking, which screened there.
With Osama, “wouldn’t it be great to always be able to get the latest information on the U.S. Armed Forces that were stationed there?” asks Collins. “HD DVD has mandatory networking ability [where info can be constantly updated on disc]. Blood Diamond has been updated three or four times since the HD DVD came out.”
HD DVD backers believe the Web-enabled standard remains an advantage over Blu-ray, as such interactivity will remain optional with Blu-ray hardware. The first Web-enabled Blu-ray set-tops should launch in 2008.
Collins did come up against some people’s concerns about the viability of HD DVD given that Warner Bros. Entertainment will stop supporting the format this spring. But he said that, overall, people seem open to learning about the technology.
“Right now, as long as these three things stay in play: studios are still supporting titles, major retailers are still selling the product, and Toshiba is still coming out with players, we remain firm in supporting HD DVD,” said Collins, stopping short of an unconditional endorsement.
Sonic Solutions said this week that it will no longer sell its Scenarist authoring product for HD DVD in order to streamline operations to emphasize Blu-ray and digital distribution services.
