Cheap Chinese HD DVD Players May Be on the Way

[joeorc]

Cheap Chinese HD DVD Players May Be on the Way
Author: THOMAS K. ARNOLD
tarnold@questex.com
Posted: June 28, 2007
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Chinese consumer electronics companies are one step closer to producing inexpensive HD DVD players. Format backers hope the move will ultimately lead to victory in their uphill fight with rival next-generation format Blu-ray Disc, but Blu-ray supporters decry the announcement as insignificant.

The steering committee of the DVD Forum has approved the final draft of a memorandum of understanding with the leading Chinese developer of optical discs, paving the way for the creation of a Chinese HD DVD format.

The deal, with China’s Optical Memory National Engineering Research Center, marks the first time China is participating in a standardization process for content within a global entity, the DVD Forum, which also gives its stamp of approval to standard DVD.

While a Chinese HD DVD format would have some differences from the global HD DVD format, backers maintain similarities in manufacturing would make it easy for Chinese consumer electronics companies to then also produce HD DVD players for a worldwide market, including the United States.

And that could tip the scale in favor of HD DVD, according to Ken Graffeo, executive VP of high-definition strategic marketing for Universal Studios Home Entertainment and co-president of the North American and European HD DVD Promotional Group.

He notes it was cheap Chinese DVD players retailing for less than $100 that really spurred the DVD to mass adoption, and he’s hoping the same thing will happen with HD DVD. Currently, the lowest HD DVD player, from Toshiba, can be purchased for $299, after a $100 mail-in rebate, while the cheapest Blu-ray Disc player, from Sony, sells for $499.

“Hardware drives software,” Graffeo said. “Why do you think they give away the razor? It’s because they want you to buy the blade.”

Graffeo notes that when Toshiba in May began offering its $100 rebate on HD DVD players, sales soared 70%.

“We sold 70,000 units in seven weeks, from a base of 100,000 units,” Graffeo said.

The Blu-ray Disc set-top count is unclear, but Sony’s PlayStation 3 comes with a built-in Blu-ray Disc drive. About 1.4 million PS3s have been sold to U.S. consumers since the pricey next-generation game machine’s retail debut last November.

However, dedicated high-def disc players, Graffeo said, tend to have “the highest attach rate,” and thus drive software sales. And if economies of scale — HD DVD is based on existing DVD technology, so players are cheaper, and easier, to produce — leads to a flood of low-priced Chinese HD DVD machines, consumer response could be so overwhelming that the studios that don’t support the format would have no choice but to switch. At this point, Universal is the only studio to exclusively support HD DVD. Paramount Home Entertainment and Warner Home Video support both HD DVD and Blu-ray, while 20th Century Fox Home Entertainment, Buena Vista Home Entertainment, Sony Pictures Home Entertainment and Lionsgate are exclusively in the Blu-ray Disc camp.

“Everybody will admit this, that the consumer will ultimately decide [which format wins],” Graffeo said. “Wherever the consumer goes, the studios will follow.”

Blu-ray Disc Association spokesman Andy Parsons dismissed the importance of the announcement. “The memo is for a Chinese HD DVD format only, so it’s a bit of a stretch to suggest that this will translate into cheap HD DVD players being exported into the United States.”

A high-ranking studio executive on the Blu-ray side who asked not to be named agreed. “And, further, why would companies that happen to be based in China look at the format war any differently than any other company outside China?,” he added. “They are business people, and watching the rest of the market very closely. If HD DVD is losing steam in the United States, Europe and Japan, what would interest them in exporting players that have less market potential than Blu-ray? The whole thing smacks of desperation.”

http://www.homemediamagazine.com/new...ticle_ID=10816

what's funny is in (7) weeks HD DVD SOLD 70,000
THE PLAYSTATION 3 JUST BY NPD #'S MIND YOU THIS DOES NOT INLUDE OTHER REGIONS SELL 80,000 IN A SINGLE MONTH...hmmm

[RichiPuppy]

He also didn't mention that disney is exclusive to blu ray, are they not important?

[Rup_Muk]

Originally Posted by RichiPuppy

He also didn't mention that disney is exclusive to blu ray, are they not important?

I caught that omission as well!

[ProvenFlipper]

Originally Posted by joeorc

At this point, Universal is the only studio to exclusively support HD DVD. Paramount Home Entertainment and Warner Home Video support both HD DVD and Blu-ray, while 20th Century Fox Home Entertainment, Buena Vista Home Entertainment, Sony Pictures Home Entertainment and Lionsgate are exclusively in the Blu-ray Disc camp.

Originally Posted by RichiPuppy

He also didn't mention that disney is exclusive to blu ray, are they not important?

Buena Vista is Disney.

[phranctoast]

the good thing for blu ray is that this will force prices down as well. look what the toshiba promotion did with giving its movies away when you purchase a hddvd player. now blu ray is doing it as well, as to not be out done. Im an early adopter so that last point doesnt really apply to me, but it may to some.

[Josh]

Originally Posted by joeorc

The steering committee of the DVD Forum has approved the final draft of a memorandum of understanding with the leading Chinese developer of optical discs, paving the way for the creation of a Chinese HD DVD format.

LOL.

If it took them nine months to agree to start developing a standard, how long do you think it will take them to actually develop the standard?

[haushausman]

Dale Jr. will deliver the final blow!!!!!!!!!!!!!!!!!!!!!!

Dale for the WIN!


But seriously, at this point is absolutely impossible for Blu-ray to lose... it's just a matter of how long HD-DVD will survive and continue to annoy us.

[Blu-Ray Buckeye]

“Why do you think they give away the razor? It’s because they want you to buy the blade.”

What is this universe he lives in where they are giving away free razors? Actually, go buy a razor today... they aren't cheap considering what they are. What a horrid analogy.

[Blu-Ray Buckeye]

Originally Posted by ProvenFlipper

Buena Vista is Disney.

Well BV is a division of Disney, so he should say Disney. Clearly he said it that way to minize it. Which has better name recognition, BV or Disney?

[joeorc]

Originally Posted by Josh

LOL.

If it took them nine months to agree to start developing a standard, how long do you think it will take them to actually develop the standard?

“Hardware drives software,” Graffeo said. “Why do you think they give away the razor? It’s because they want you to buy the blade.”

http://www.homemediamagazine.com/new...ticle_ID=10816

what's funny is in (7) weeks HD DVD SOLD 70,000 HD DVD players
THE PLAYSTATION 3 JUST BY NPD #'S MIND YOU THIS DOES NOT INCLUDE OTHER REGIONS SELL 80,000 playstation 3 systems IN A SINGLE MONTH...hmmm

so haveing a 2:1 lead in sales month to month in HD movie disc sales
and when you have 100% HD DISC game sales month to month that are also blu-ray disc's being sold. I GUESS the BDA cannot count the playstation 3 for driveing blu-ray disc's sold....

[HDTV1080P]

Here is a new article on the cheap Chinese HD DVD players may be on the way.
http://www.homemediamagazine.com/index.cfm?sec_id=2&newsid=10816

Even if the HD-DVD camp is able to sale several millions of players under $100 I still believe the studios will decide which format is going to win.

I disagree with the following quote

“Everybody will admit this, that the consumer will ultimately decide [which format wins],” Graffeo said. “Wherever the consumer goes, the studios will follow.””

I disagree, the way I see it is where every the studios go, the consumer will follow.

The major Hollywood studios that release movies are the ones that decide which format is going to win. When studios stopped releasing movies in the VHS format this lead to consumers that were still where using VHS machines to purchase a DVD player in order to watch Hollywood movies. So even if the HD-DVD camp sold 20 million HD-DVD players if Sony Pictures, Disney, and 20th Century Fox wanted to they could one day decide to stop releasing movies in the unprotected DVD format and only release movies in the BLU-RAY format once BLU-RAY players are under $200. Then the DVD and HD-DVD format would be dead in a few years if Disney, Sony Pictures, and 20th Century Fox only released movies in the secure BLU-RAY format using BD+.
In the end it’s the major studios that choose which format is going to win. Even if 20 million HD-DVD players are sold the studios can always say no to HD-DVD.

If the studios killed off the DVD format then both DVD and HD-DVD players would be useless for new movies.

[buckshot]

did I miss something? I thought funai was supposed to be making low cost bd players for us. if we have low cost chinese players and they have them too. isn't that a draw?

[GaS]

Pure delusion.

[ps3andlovinit]

Originally Posted by joeorc

“Hardware drives software,” Graffeo said.

Too funny.

Hey Ken it is working like that... for Blu-ray - it's called the PS3. Maybe you missed that part..check the numbers before and after Nov 17 2006.

[GasCat]

Originally Posted by haushausman

Dale Jr. will deliver the final blow!!!!!!!!!!!!!!!!!!!!!!

Dale for the WIN!

When his fans start showing up I hope they will see a place that welcomes them.

[GaS]

That looks to be a chinese specific hd-dvd format. They say similar to global standard, but not the same.

[WickyWoo]

The Chinese format is red-laser, 720p, and will require multiple discs(DVD-9s) (like SVCD did). It will not do PiP or most of the other bells and whistles BR and HD do.

It's going to bomb, and bomb hard, just like all the other China-exclusive formats have. When the Chinese steal something, they only steal the best, and they're not interested in legit product that they have to wait for and be censored for $5, when they can get a bootleg for $1 that looks better whenever they start pressing BR boots.

[gandley]

Originally Posted by GaS

That looks to be a chinese specific hd-dvd format. They say similar to global standard, but not the same.

it is, so they have to produce players for there own market and then players for the rest of the world. No wonder we have not seen these players yet.

[darinp2]

Originally Posted by joeorc

Cheap Chinese HD DVD Players May Be on the Way
Author: THOMAS K. ARNOLD
tarnold@questex.com
Posted: June 28, 2007

Currently, the lowest HD DVD player, from Toshiba, can be purchased for $299, after a $100 mail-in rebate, while the cheapest Blu-ray Disc player, from Sony, sells for $499.

That part isn't accurate as of today. There was no $100 mail-in rebate (it was an instant rebate) and it ended around June 16th. They may add it again, but as of now in stores the lowest price I know of is $349 for the A2 and $479 for the BDP-S300 (Video Only). On Amazon the HD-A2 is $299 and the BDP-S300 is $478. They may be using street for one vs MSRP for the other, which is something people who shouldn't be trusted too much do.

--Darin

[dialog_gvf]

While a Chinese HD DVD format would have some differences from the global HD DVD format, backers maintain similarities in manufacturing would make it easy for Chinese consumer electronics companies to then also produce HD DVD players for a worldwide market, including the United States.

Talk about cart before the horse. You can't be passing on savings now from the manufacturing of a product that won't exist until the future.

Step 1 - Make lots of Chinese HD DVD variant players
Step 2 - Apply the economies of scale to western models

In typical desperation, the HD DVD crowd are promising Step 2 before Step 1 has occured.

And, they fail to remember that many of the components are common, so whatever savings are realized for HD DVD will have affect on BD prices too.

Gary