Punching up next-gen promos

FROM VSDA: HD DVD backers vow to spend $150 million

By Susanne Ault -- Video Business, 7/11/2006

JULY 11 | LAS VEGAS—HD DVD backers unveiled an ambitious $150 million marketing plan, highlighted by a roving 18-wheeler home theater truck parked in the Venetial exhibit area, to help boost awareness of the high-definition format.

Hardware and software executives jointly trumpeted HD DVD during a Tuesday press event. To oversee the blitz, officials from Universal Studios Home Entertainment, Paramount Home Entertainment, Warner Home Video, Intel, Hewlett-Packard, Toshiba and Microsoft have formed the North American HD DVD Promotional Group.

Yoshi Uchiyama, group VP for Toshiba America Consumer Products’ digital A/V group, has been tapped the group’s chair.

The HD DVD campaign will cross print, TV, online, cable and outdoor channels and is expected to run over six months through February. All spots will be stamped with the tagline “The Look and Sound of Perfect.”

Plastered with HD DVD signage and filled with HD DVD products, the 18-wheeler truck will soon embark on a 10-city tour. Examples of billboards include 3D representations of giant flames and blood splatters, emphasizing special effects quality differences between HD DVD and standard definition.

HD DVD’s advertising partner is Goodby, Silverstein & Partners, best known for its “Got Milk?” campaign.

A new Web site, www.TheLookandSoundofPerfect.com, launched Tuesday and includes trailers of HD DVD movies.

Although extensive, the campaign may fall on somewhat deaf ears in the short term. Industry sources say that at this point, only about 20,000 HD DVD players have been sold. Toshiba is the only manufacturer to launch hardware for the format. However, sources believe that titles are selling impressively, considering the slim hardware penetration. Insiders say that certain individual HD DVDs, which collectively total 40 releases, have sold 20,000 units. Also, certain titles have sold as many as 5,000 copies in one week.

Universal executive VP of marketing Ken Graffeo laid out HD DVD research, conducted by Ipsos, to illustrate that the Promotional Group’s efforts will not be for naught. Given the scenario of equal studio support for both HD DVD and the competing Blu-ray Disc, respondents were more than seven times more likely to buy an HD DVD player vs. a Blu-ray player. A big difference between the two formats is price—current hardware models sell for about $500 and $1,000, respectively.

A merchandising task force has been formed within the Promotional Group to specifically address retail HD DVD presentations. Currently, there is no standard way retailers are displaying high-definition hardware and software. One Los Angeles-area Best Buy store has stocked Blu-ray titles in HD DVD designated endcaps (VB, 6-21).

“There is an element of confusion,” said Graffeo. “There is product that is hidden on shelves. But the 10-city tour will help raise visibility of the format.”

Blu-ray beat HD DVD to the punch with a formal advertising campaign in June, when its supporters bowed the first Blu-ray products (VB, 6-9). However, the April debut of HD DVD products at retail was well ahead of Blu-ray.

Tom Adams, head of Adams Media Research, believes the HD DVD campaign will help the format’s cause.

“One-hundred-and-fifty [million] bucks of marketing money goes a long way,” Adams said. “And they have first mover [in the market] advantage. Without [the campaign], it would have been a very slow year for HD DVD. This will improve sales.”

Warner will release some of its premiere titles on HD DVD in the current third quarter, including Batman Begins and Harry Potter and the Goblet of Fire, senior VP of marketing management Steve Nickerson told VB. Batman Begins had initially been expected earlier this spring.

But the HD DVD marketing onslaught is intended to ultimately support the all-important holiday shopping period when various hardware models and A-list titles should be available.

“We have said that the period between March and September is a preliminary” launch, Nickerson said. “It’s really about the fourth quarter. Despite anybody’s concerns of [whether] we are doing the right thing, we are doing what we think is the right way” to effectively rollout HD DVD.

Paul Sweeting contributed to this report

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