Blu-ray closing the format gap in Australia

[BBlue]

Blu-ray closing the format gap

Michael Bodey | November 22, 2007

THE winner of the Australian high-definition format war is expected to be declared after this year's fourth quarter.

The result is likely to be triggered by a recent increase in software releases and fall in hardware prices.

The recent $300 price cut to $699 for Sony's Playstation3 gaming console, which doubles as a Blu-ray disc player, and a shift in its marketing premise as an all-round entertainment centre will be key in distinguishing Blu-ray from the high-definition DVD format.

"Blu-ray really started to ramp up four or five weeks ago with the launch of the new Sony Bravia (HDTV), the repositioning of the PS3 and good (film) title mixes coming through, and we're getting to good penetration on HDTVs," said JB Hi-Fi's marketing manager Scott Browning.

In February, high-definition players retailed at $1600 and couldn't record. Now Toshiba's HDDVD player is available for $499 (after $100 cashback) and Blu-ray players are available for $600.

Mr Browning said the high-definition category was still being driven by the uptake of HDTV sets and the Seven and Ten networks' promotion of the HD format had been persuasive in driving sales.

The high definition sector "is rapidly growing to the extent that it's certainly surprised us," he added.

"We're very satisfied we made the move six to eight months ago in taking Blu-ray by the throat," Mr Browning said.

"It's the pointy end of a category, but when you're ahead of the curve, you tend to lead that category."

The collective weight of the Blu-ray consortium threatened to blow away the rival HDDVD technology.

Blu-ray is supported by hardware suppliers Sharp, Sony and Samsung and movie studios Disney, Fox, Lionsgate, MGM and Sony Pictures.

Paramount and Universal support Toshiba's HDDVD exclusively, while Warner Bros distributes discs in both formats. Toshiba is reported to have offered $US100 million ($113 million) to DreamWorks Animation and $US50 million to Paramount to move exclusively to HDDVD, figures that have not been denied.

It means the likely big Christmas sellers, Shrek the Third, Blades of Glory and Transformers, will boost the HDDVD format. Perhaps as a consequence, JB Hi-Fi has lately begun selling HDDVD titles and hardware.

Stephen Langsford, chief executive of online DVD rental store Quickflix, said nine months ago requests for HDDVD titles outstripped those for Blu-ray titles. "Where we stand today, the demand for Blu-ray is certainly edging ahead," he said.

"Whether that's because PS3 is getting cut through or not, I'm not sure, but I suspect so."

Quickflix's figures show more than 10 per cent of its membership are now requesting high definition titles.

"So it's quite a level of interest, regardless of it being HDDVD or Blu-ray," he said.

That contrasts with figures recently released by industry researcher GfK that showed 85 per cent of high-definition disc sales were Blu-ray titles. From January through to September this year, 81,219 Blu-ray movies were sold in Australia compared with 14,632 HD DVD movies.

http://www.australianit.news.com.au/...-15306,00.html