Home Media Magazine - December 30, 2007 - January 5, 2007 - (Page HD8)

studio roundtable STUDIO PRESIDENTS THE LATEST OBSTACLES IN THE HIGH-DEF FORMAT MARKETPLACE ARE CONSUMER CONFUSION AND INDIFFERENCE By Thomas K. Arnold s we enter our third year of high-definition media, the Hollywood studios are taking promotional matters into their own hands more aggressively than ever before. Studios, perhaps more so than any other branch of the industry, are bent on making HD media succeed as they realize the steady influx of HDTVs into American households will one day make the DVD obsolete. It’s an uphill fight, to be sure. The competition between Bluray Disc and HD DVD for consumer attention and dollars is creating mass confusion among consumers, with many holding off from buying either player until the format war is resolved. An even more potent enemy to HD media’s success is consumer indifference. The average consumer simply doesn’t realize the benefits of HD media. Pundits have accused the consumer electronics industry of spending too much time fighting the format war and not enough time educating the public about the benefits of HD media. The studios have long been supporting both formats with ample product. But now that we’re approaching the second anniversary of the launch of HD DVD (April 2006) and Blu-ray Disc (June 2006), the studios are sounding the drum more fervently than ever. They’re teaming with their CE partners to create attractive cross-promotions at retail, using free software as a lure to get people to buy HD players — in the hopes these new HD media households will gobble up HD software as voraciously as new DVD households gobbled up DVDs in the early 2000s. They also are stepping up the rhetoric and working together to generate more public awareness of HD media, with Walt Disney Studios Home Entertainment, in particular, taking the lead with such initiatives as a national Blu-ray Disc mall tour and gala Hollywood launch parties for new Blu-ray releases such as Ratatouille and the “Pirates of the Caribbean” films. On the eve of the Consumer Electronics Show in Las Vegas, Home Media Magazine for the second consecutive year spoke with the presidents of six big studios and two mini-majors — Blu-ray supporters Lionsgate, Sony Pictures Home Entertainment, 20th Century Fox Home Entertainment and Walt LOOK AHEAD Disney Studios Home Entertainment; HD DVD supporters Paramount Home Entertainment and Universal Studios Home Entertainment; and Warner Home Video and New Line Home Entertainment, which support both formats — about the state of the HD media business and its potential. Participants included Craig Kornblau, president of Universal Studios Home Entertainment; Ron Sanders, president of Warner Home Video; Bob Chapek, worldwide president of Walt Disney Studios Home Entertainment; Kelley Avery, worldwide president of Paramount Home Entertainment; Steve Beeks, president of Lionsgate; Mike Dunn, worldwide president of 20th Century Fox Home Entertainment; David Bishop, worldwide president of Sony Pictures Home Entertainment; and Steve Einhorn, president of New Line Home Entertainment. I Home Media Magazine: Are we on track for 2008 to be the breakout year for high-definition disc? And if so, what is fueling your optimism? Ron Sanders: The environment is definitely improving. We are seeing dramatic reductions in hardware pricing, and there are great ongoing advertising and marketing campaigns as well as tremendous promotional offers for the consumer. I think the industry is making a more concerted effort to communicate with consumers. David Bishop: Next year should be a very good one for highdefinition in general. On the Blu-ray side, in particular, we look forward to the proliferation of PlayStation 3 in the marketplace. The installed base is expected to more than double. With all the emphasis and marketing that we as a Blu-ray group are devoting to the demonstration of the PS3’s high-definition movie playback capabilities, we anticipate this providing some real dividends with consumers next year. Mike Dunn: We’ll really see the marketplace materialize in the coming year with critical mass in HDTV households and every indicator favoring Blu-ray’s inevitable success. First, virtually every CE company is building only Blu-ray devices and doing so with a variety of models and in greater quantities than ever. Second, Blu-ray software has been outselling the other format 2-to-1 all year — a trend that will continue and only grow. All of A 8 HOLLYWOOD goes HIGH-DEF Winter 2007/2008

Table of Contents Feed for the Digital Edition of Home Media Magazine - December 30, 2007 - January 5, 2007

Contents News Commentary TV DVD Reviews Pipeline Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced Hollywood Goes High-Def

Home Media Magazine - December 30, 2007 - January 5, 2007

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