$23 million Blu-ray software & $8.5 million HD DVD sold outside the U.S.

[Tekman]

Posted by Marcy Magiera on August 14, 2007
Warner Home Video last week issued what’s likely to be the first in a string of fourth-quarter press releases from across the major studios touting high-def sales records. In Warner’s case, it claimed its 300made the biggest high-def debut to date, selling more than 250,000 units combined on HD DVD and Blu-ray Disc. There was no breakdown of sales on the individual formats, in keeping with Warner’s approach to high-def, despite some reports that sales were 65% Blu-ray.

Warner’s doing the best job among the major studios of capturing what money there is to be made in high-def currently, as evidenced by its 30% market share—which is a good 10 percentage points higher than Warner’s market-leading share of DVD sales and due completely to its support of both formats.

Critics chide the studio for prolonging the format war, but there are clearly benefits to the impasse. Hardware price declines are a positive consequence of two formats battling for dominance. As prices decline and player prices approach the “magic” $200 mark (Toshiba’s third-generation of HD DVD players, due this fall, will carry three models under $500) household penetration can only pick up speed.



This line of reasoning is also put forth by Craig Kornblau, chief HD DVD supporter in his role as head of sole HD DVD exclusive studio Universal Studios Home Entertainment. In an interview on, of all places, the Blu-ray studios’ promotional Hollywood in Hi-Def Web site (hollywoodinhidef.com). Kornblau says that without the format war, even after more than a year in the market, the lowest-priced players would still be priced out of reach of most consumers. He says Universal chose HD DVD because of its affordability and interactivity, and the studio is sticking for now.


There’s a lot of evidence that makes it easy—as the Blu-ray supporters have been doing for months—to declare the war all but done, with Blu-ray as the winner: Blu-ray is outselling HD DVD software; Blu-ray players are on the move to collectively outsell HD DVD players (see story, page 6); and most blockbuster titles in Q4 will be available on Blu-ray.


But while Blu-ray may be pulling ahead, it’s by nowhere enough to kill HD DVD, which with a third or so of the market, is far from on the ropes.


Watch the Q4 news to see how many of the new records set are by Blu-ray titles alone, and how many come from Warner or Paramount, which support both formats.


All that said, internationally Blu-ray enjoys a wider margin of close to 3:1 over HD DVD. In its report of first-half home entertainment sales internationally, research concern Media Control GfK International shows consumers outside the U.S. bought about 650,000 units of Blu-ray software, valued at more than $23 million, with HD DVD selling just around 240,000 units valued at about $8.5 million in the first half

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