While video downloads have been threatening to take a chunk out of DVD and Blu-ray Disc sales, its had little effect on consumer spending so far this year. Home Media Magazine is reporting that the sales of DVDs and Blu-ray Discs are up 2.3% from last year. DVD unit sales did see a drop of 1.2%. However, this was offset by a 351% increase in Blu-ray sales.
Consumer spending on DVDs and Blu-ray Discs in the first three months of this year was up about 1% from the first three months of 2007, coming in at $5.51 billion, up from $5.46 billion in the first quarter of last year, according to Home Media Magazine market research estimates based on studio and retail data.

Sales were up 2.3% to $3.47 billion, from $3.39 billion, while rental spending slipped 1.6% to $2.04 billion, from $2.07 billion...

...And according to Nielsen VideoScan sales data, the nascent Blu-ray Disc saved the day for the sellthrough business, with DVD unit sales in the first quarter down 1.2% from the first quarter of 2007 but Blu-ray Disc sales up a whopping 351%.
If you'd like to read more, the entire article can be found here. Add a comment
A new study conducted by Oliver Wyman has found that consumers will pay as much as $9 for video-on-demand (VOD) and internet movie rentals if they were available on the same day as the DVD release. By charging more for "same-day" releases, Wyman also predicts that the movie industry could create as much as $5 billion in growth.
A study of 2,000 U.S. consumers conducted by Oliver Wyman, an international management consulting firm, found that a price point between $7 and $9 is optimal for the next generation of video-on-demand (VOD) and Internet movie rentals: high-definition (HD) movies released on the same day as DVDs. This premium over today’s $4 price for standard DVD or VOD movie rental would create substantial market growth by 2010.

Rollout of HD VOD and Internet movies on day-and-date of DVD release is a growth opportunity not only because consumers value them and will pay more, but also because this expanded availability will increase overall movie viewership. The Oliver Wyman study found that that these enhanced offers would lead U.S. consumers to watch and pay for an average of three more movies per year than they do today, creating a net annual increase in domestic consumer movie spending of more than $5 billion, from the current base of $50 billion.
More information on Wyman's study can be found here. Add a comment
While the PlayStation 3 is more than capable as a Blu-ray player, its lack of support for DTS-HD has been a major complaint among home theatre enthusiasts. These complaints haven't gone unheard as Sony will be adding support for DTS-HD in the next system software update.
I have more good news to report today - the system software update will also add DTS-HD Master Audio output for Blu-ray videos, which means the high-definition visuals of Blu-ray will now be matched with the highest quality audio for the ultimate movie-watching experience on PS3.

DTS-HD Master Audio is literally bit-for-bit identical to the studio master recording and makes movie soundtracks and sound effects truly come to life. The technology delivers audio at the incredibly high rate of 24.5 mega-bits per second (Mbps) on Blu-ray disc, which is significantly higher than standard DVDs. DTS-HD Master Audio also offers 7.1 audio channels at 96k sampling frequency/24 bit depths, so you’ll be totally immersed in the sound. The firmware update will add DTS-HD High Resolution Audio as well, which is a similar output technology that requires less disc space. You can read more about both codecs here.
Support for DTS-HD isn't the only new feature in the 2.30 firmware. This update will also give PS3 owners the ability to access the revamped PlayStation store. Full details can be found here. Add a comment
NetBlender has announced a new technology that gives iPhone users the ability to interact with content on a Blu-ray disc. This new technology, called "BD Touch", enhances the capabilities of BD Live by enabling two-way communication between a Blu-ray player and Apple's iPhone and iPod Touch.

NetBlender today announced a new Blu-ray Disc technology that allows iPhones and iPod Touch devices to interact with content on a Blu-ray disc. Called "BD Touch", the technology leverages the network connection built into Blu-ray players and the WiFi connection on the iPhone to create two-way communication between the devices. Video, audio, text, and player commands can be transferred via the connection.

"Having spent the past decade building interactive video products we are thrilled to bring together two of the most interactive consumer products ever created with BD Touch," said John Harrington, NetBlender CEO. "We began R&D on integrating the two devices right after I experienced the iPhone Multi-Touch interface for the first time."

BD Touch connects the 10 foot experience of the large screen home theater with the mobile experience offered by the iPhone. The sophisticated UI of the iPhone enables unprecedented user interaction when compared to any other handheld device. BD Touch applications can take advantage of the iPhone's geo location features, 3D sensors and QWERTY keyboard. BD Touch features will work on any BD Live-enabled Blu-ray Disc player such as the PlayStation 3.
It's not clear as to whether or not BD Touch will work with existing BD Live titles. Most likely, the BD Touch framework will need to be incorporated into the title for it to work correctly. If you'd like to read more, Netblender's entire press release can be found here. Add a comment
Blockbuster announced today that it will be offering Blu-ray titles in all of its corporate stores throughout the U.S. and Canada. To highlight the availability of Blu-ray, the company will also be installing kiosks equipped with PS3's and HDTV's in almost 5,000 of its stores.
Beginning this week, inaddition to the standard DVDs lining its shelves, Blockbuster Inc. will beoffering customers something extra -- Blu-ray movies, for rent and sale inall of its corporate stores in the U.S., as well as in Canada, and selectdomestic franchise locations. Blockbuster made news last July with itsannouncement that the company was making Blu-ray available in 1,700 of itsstores. Now, less than a year later, the company is positioning itself tobecome the customer's Blu-ray headquarters for rental and retail productwith this national launch.

To highlight the availability of Blu-ray in its stores, Blockbuster isinstalling Blu-ray kiosks in the center of its stores. Featuring a 42-inchhigh-definition TV with movies playing via a PLAYSTATION(R)3 (PS3(TM))console, the Blu-ray kiosks will enable customers to experience themovie-viewing advantages of high-definition technology while also drivinghome the point that PS3 consoles double as Blu-ray players.
Blockbuster is also offering its online subscribers a Blu-ray preference setting so they can automatically receive all available movies in the high-definition format. Full details can be found here. Add a comment
Good news for those that bought an HD DVD player from Amazon.com. According to Gizmodo, the retailer is giving $50 in credit for every HD DVD player bought from them before February 23, 2008. Here is part of the email that Amazon is sending to their customers:
As someone who purchased an HD DVD player from us before February 23, 2008,* you might like to hear about a special offer available from Amazon.com.

New technologies don't always work out as planned. We at Amazon.com value our customer relationships more than anything and would like to support customers who purchased these players by offering a credit good for $50 off any products sold by Amazon.com.** Just use promotional code PROMO CODE HERE when checking out. The code is valid through April 9, 2009, so you have plenty of time to use your credit. Purchases from third-party merchants on our site are not eligible.
While this isn't as good as an entire refund, its good to see retailers like Amazon making things right with their customers. If you'd like to read more, the entire email can be found here. Add a comment
Like Best Buy and Circuit City, Wal-Mart is trying to make things right with customers that bought an HD DVD player. According to a story by the Wall Street Journal, the retailer is giving full refunds to those that bought an HD DVD player on or after November 1st.
Wal-Mart Stores is offering refunds for HD DVD players purchased on or after Nov. 1. To qualify, customers must return the players by April 30 and have a receipt in hand. Original packaging isn't required.
If your local Wal-Mart store gives you any hassles, a copy of the memo sent to all stores is available at SlickDeals.net. If you'd like to read more, the entire article can be found here. Add a comment
At a recent press conference in Taipei, Sony president and Electronics CEO Ryoji Chubachi announced that the company aims to increase its BD market share from 20% to 50% by the end of 2008. Sony also plans to offer a number of new BD devices including an LCD TV with a built in BD recorder.
Sony will offer Blu-ray Disc (BD) devices in a wide range of product lines and prices and aims to increase the global market share of its BD products from 20% currently to 50% by the end of 2008, according to Sony president and Electronics CEO Ryoji Chubachi at a press conference in Taipei on April 3.

DVD and BD currently account for about 80% and 20%, respectively, of global demand for movie discs, Chubachi indicated. The new BD devices to be offered by Sony include models integrating an HD LCD TV with BD recording functionality, Chubachi pointed out.
While new devices are great, the best way for Sony to boost its market share would be to lower the price its BD players. Unfortunately, I don't see that happening any time soon. If you'd like to read more, head on over to DigiTimes. Add a comment
Earlier this week, DigiTimes reported that Lite-On was developing a Blu-ray drive for the Xbox 360. Microsoft has denied this rumor, stating that the company is currently focusing on providing games and that those looking for HD content can get it through the Xbox Live Marketplace.
“No. Lite-On is not manufacturing Blu-ray drives for Xbox 360. As we have stated, games are what are driving consumers to purchase game consoles, and we remain focused on providing the largest library of blockbuster games available."

“For our customers who want a premium movie experience we offer the largest library of on-demand HD content available, and the ability to play back DVDs in high definition.“
While I think there is some truth to these rumors, Microsoft isn't going to announce support for Blu-ray until they are good and ready. If you'd like to read more, the entire article can be found here. Add a comment
While Blu-ray won the format war, the research firm Interpret has found that it has a few hurdles to overcome if it is to succeed. According to their latest study, Blu-ray is still challenged by low HDTV penetration and moderate awareness among consumers.
Interpret, LLC, aleading new media research firm has found that the success of Blu-ray Discremains challenged by low HDTV penetration and modest format awareness. TheUK and US lead the market: UK HDTV penetration closely follows US (35% UK,39% US), and the majority of UK and US consumers are aware of Blu-ray Disc(56% UK, 60% US). Japan has moderate Blu-ray awareness (45%) and HDTVpenetration (28%), but Blu-ray hardware penetration matches UK and US at9%.

Interpret's research shows that France and Germany pose greaterchallenges to the format, with HDTV penetration low in both countries (18%Germany, 21% France). While Blu-ray awareness is moderate in Germany (49%),only 3 in 10 consumers in France (30%) have ever heard of Blu-ray Disc.
Interpret's study also found that many Blu-ray player owners are still buying standard definition DVD's. If you'd like to read more, Interpret's entire press release can be found here. Add a comment