Home Media Magazine - January 11, 2009 - (Page 24) NEWS CES Showcases Blu-ray, Digital Delivery Continued from page 1 www.homemediamagazine.com several new profile 2.0 players and related home theater products. LG Electronics previewed a few Bluray devices: the LG BE08 Blu-ray Disc drive and its Network Attached Storage device, which can be configured with up to 4TB capacity and has a built-in Blu-ray drive (model N4B1). Panasonic unveiled the BD60, BD80 and BD70V players, all synched to the manufacturer’s Viera-branded HDTV that enables interactivity with the Internet. The company also introduced a portable Blu-ray player with 1080p resolution and BD Live functionality, available this summer. Samsung bowed three new players, including its flagship wireless device, the 1.5-inch thick wall-mountable BD-P4600 that includes Netflix streaming, 1080p resolution and the latest HD sound quality. Tim Baxter, EVP of consumer electronics sales and marketing with Samsung, said he said he expects year-end U.S. sales of 2.8 million BD standalone players to double in 2009. Samsung also bowed the HTBD8200 Blu-ray home theater system that incorporates wireless technology. Panasonic and Samsung announced separate partnerships with Yahoo that involve a proprietary widget embedded in the new lines of wireless LCD and plasma HDTVs and allow users to access Web-based content. Panasonic announced its BT 200 and BT 300 Blu-ray home theater systems that include Amazon’s VOD movie service and YouTube videos. Panasonic said it is also developing 3-D technology in Blu-ray by 2010. Panasonic is working with director James Cameron on Avatar, the first major studio tentpole 3-D movie, slated for release in December. Jeffrey Katzenberg, CEO of DreamWorks Animation, showed a 3-D clip of Monsters vs. Aliens, slated for theatrical release March 27. “Blu-ray is the perfect platform for impeccable 3-D,” Walt Disney Studios Home Entertainment president Bob Chapek said at the DEG: Digital Entertainment Group’s reception. players, underscoring the high-definition format’s burgeoning appeal with consumers and the enduring commercial legacy of standard DVD. Proponents touted Blu-ray’s HD resolution, improved audio and evergreen future via BD Live. Concurrently, these same manufacturers heralded Web-enabled wireless HDTVs earmarked to deliver streamed on-demand studio and network entertainment into the living room. “There’s really no reason for them to be mutually exclusive,” said Andy Parsons, SVP of advanced product development for Pioneer Electronics, and chair of the Blu-ray Disc Association’s (BDA) promotions committee, which hosted a press event at CES. “When you think about downloading content, chances are pretty good that is being done on a temporary usage basis. When you want to own something, there is nothing like a physical disc.” Richard Doherty, director of The Envisioneering Group in New York and 30-time CES attendee, said the percentage of standalone BD players would increase to 40% by the end of 2009, up 10% from 2008. “With BD Live, however, it is nearly all PlayStation 3,” Doherty said. “They are all networked and wireless.” He said CES showcased the usual array of high-end products, the majority of which the analyst said may come to market but are also out of the reach of most consumers’ budgets. “I like to see more things people can afford, like EchoStar’s announced dual digital video recorder, the $99 set-top box from Roku and a $100 BD player,” Doherty said. Despite an expected bounce in consumer spending leading up to the digital TV transition, the Consumer Electronics Association (CEA) said it expects 2009 industry sales to fall 0.6% to $171 billion, the first announced decline in recent memory. The trade group said the CE industry grew 5.4% to $172 billion in 2008 despite the economic downturn, which largely affected the fourth quarter. The primary revenue driver continues to be digital TVs, representing 15% of industry shipment dollars. President-elect Barack Obama Jan. 8 requested Congress delay the transition to give more time to those affected by the cutoff of analog TV slated for Feb. 17. (See story, page 18.) As the digital transition nears, unit shipments of digital TVs will approach 35 million in 2009, an increase of about 6% over 2008 shipments. LCD displays remain the top choice among consumers, representing 77% of total digital TV units, according to the CEA. The CEA said increased content, upgraded products and lower prices would help Blu-ray revenue surpass $1.2 billion in 2009. Gary Shapiro, president and CEO of the CEA, during the opening day keynote said the recession underscored the industry’s need to innovate, including creating more environmentally friendly and energy efficient products. He said 89% of consumers want their next TV to be energy-efficient. Sony chairman Howard Stringer said CE manufacturers need to focus on enhanced, multifunctional and open-format devices to entice budgetconscience consumers. He cited Bluray and connected wireless technology as prime examples of CE ingenuity during tough economic times. “By 2011, 90% of Sony products will be wireless and interactive with each other,” Stringer said. At CES, manufacturers showcased ‘Netherbeast’ at CineSpace DEG Says Industry Held Steady in 2008 Continued from page 1 although Blu-ray Disc rentals generated an estimated $350 million. Blu-ray sales and rentals accounted for $750 million in consumer spending in 2008, four times the total in 2007, when there were still two rival high-def formats in the market. “We’re seeing that as consumers prepare for the analog shutoff date, there is a strong surge of interest in high-def content, and Blu-ray Disc is the ideal format for consumers who want to fully experience HD,” said Amy Jo Smith, executive director of DEG: The Digital Entertainment Group. Studios shipped an estimated 1.4 billion software units to retail in 2008, down from 1.6 billion in 2007, according to figures compiled for DEG by Swicker & Associates. That brings the total number of units shipped since DVD’s 1997 launch to more than 10 billion discs. In the fourth quarter alone, 453 DVDs shipped to retail, down from 662 million in Q4 2007. The top-selling home video release of 2008, according to Home Media Research, was Warner’s The Dark Knight, which sold an estimated 10.8 million DVDs and Blu-ray Discs. Paramount’s Iron Man finished second (8.1 million units), followed by 20th Century Fox ’s Alvin and the Chipmunks (7.4 million units), Warner’s I Am Legend (7 million units) and Paramount/DreamWorks’ Kung Fu Panda (6.7 million units). Rounding out the top 10: Walt Disney Studios’ Wall-E (No. 6, 6.4 million units) and National Treasure 2 (No. 7, 5.4 million units), Paramount’s Indiana Jones and the Kingdom of the Crystal Skull (No. 8, 5.4 million units), Disney’s Enchanted (No. 9, 4.8 million units) and Paramount/DreamWorks’ Bee Movie (No. 10, 4.3 million units). The DEG also says 25 million DVD players were sold to U.S. consumers in 2008, down from 33 million the previous year, while the number of Blu-ray Disc playback devices — both standalone players and the PlayStation 3 — stands at nearly 10 million. The total number of DVD players in U.S. homes is pegged at 264 million — a household penetration of 92%. The DEG last week held its annual reception and its Creative Excellence Awards at the 2009 International Consumer Electronics Show. Warner’s The Dark Knight earned best in show. Other winners included Disney’s Wall-E, theatrical DVD of the year; Universal Studios’ Touch of Evil: 50th Anniversary Edition, catalog DVD title of the year; HBO’s The Sopranos: The Complete Series, TV DVD title of the year; 20th Century Fox’s Futurama: Bender’s Game, direct-to-DVD title of the year; Paramount’s Shine a Light, music DVD of the year; and Disney’s Sleeping Beauty, Blu-ray Disc title of the year. National retailer of the year for hardware went to Best Buy; regional retailer of the year for hardware went to Sixth Avenue Electronics. Retailer of the year for software went to Amazon.com. The DEG Emiel N. Petrone Digital Innovation Awards went to Pioneer for the Elite Kuro PRO-141FD HDTV in the Sight category and the SC-09TX A/ V receiver in the Sound category; and Panasonic for the DMP-55 Blu-ray Disc player in the Source category. John Latchem contributed to this story. Cast members gathered at Los Angeles’ CineSpace Jan. 6 to celebrate the DVD release for Well Go USA Entertainment’s Netherbeast Incorporated. (L-R): Doris Pfardrescher, Well Go EVP of acquisitions; actors Dave Foley and Cathy Rankin; Chrissy Walker, Well Go’s marketing director; actors Brian Ronalds and Bruce Nelson; and writer-actor Bruce Dellis. Wal-Mart, Netflix In Cahoots? Continued from page 1 brick-and-mortar DVD business. “According to Hastings, having ‘noticed how low Wal-Mart’s prices [for DVDs] were,’ he ‘called the CEO [of Walmart.com] in January and asked if he could have dinner,’” the suit reads. In May of that year, Wal-Mart agreed to shutter its online DVD rental service by June, giving its customers a chance to join Netflix at the same subscription price Wal-Mart charged for a year. In return, Netflix agreed to promote Wal-Mart as the place to purchase new DVDs. According to the suit, Wal-Mart accounts for 40% of all new DVDs sold, mostly online, and the agreement between it and Netflix was contingent on Netflix agreeing not to engage in the sellthrough business. The suit says the agreement allowed Netflix to gain its approximate 75% market share, and charge subscription fees that were at “artificially high and supracompetitive levels,” thanks to having only to compete with Blockbuster Inc. HOME MEDIA MAGAZINE (ISSN 1934-9882) is published weekly 52 times per year by Questex Media Group, Inc., 306 West Michigan Street, Suite 200, Duluth, MN 55802. 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Table of Contents Feed for the Digital Edition of Home Media Magazine - January 11, 2009 Contents News Cine Mercado Reviews Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced Home Media Magazine - January 11, 2009 Home Media Magazine - January 11, 2009 - (Page 1) Home Media Magazine - January 11, 2009 - (Page 2) Home Media Magazine - January 11, 2009 - Contents (Page 3) Home Media Magazine - January 11, 2009 - News (Page 4) Home Media Magazine - January 11, 2009 - News (Page 5) Home Media Magazine - January 11, 2009 - News (Page 6) Home Media Magazine - January 11, 2009 - News (Page 7) Home Media Magazine - January 11, 2009 - News (Page 8) Home Media Magazine - January 11, 2009 - News (Page 9) Home Media Magazine - January 11, 2009 - Cine Mercado (Page 10) Home Media Magazine - January 11, 2009 - Cine Mercado (Page 11) Home Media Magazine - January 11, 2009 - Reviews (Page 12) Home Media Magazine - January 11, 2009 - Reviews (Page 13) Home Media Magazine - January 11, 2009 - Reviews (Page 14) Home Media Magazine - January 11, 2009 - Reviews (Page 15) Home Media Magazine - January 11, 2009 - Top 20 DVD Sellers (Page 16) Home Media Magazine - January 11, 2009 - Top 20 Rentals and Top 10 Charts (Page 17) Home Media Magazine - January 11, 2009 - Top 20 Rentals and Top 10 Charts (Page 18) Home Media Magazine - January 11, 2009 - Top 20 Rentals and Top 10 Charts (Page 19) Home Media Magazine - January 11, 2009 - Just Announced (Page 20) Home Media Magazine - January 11, 2009 - Just Announced (Page 21) Home Media Magazine - January 11, 2009 - Just Announced (Page 22) Home Media Magazine - January 11, 2009 - Just Announced (Page 23) Home Media Magazine - January 11, 2009 - Just Announced (Page 24) Home Media Magazine - January 11, 2009 - Just Announced (Page 25) Home Media Magazine - January 11, 2009 - Just Announced (Page 26)
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