Warner backs Blu-ray exclusivelyCiting consumer confusion, studio will stop marketing HD DVD in MayBy Susanne Ault -- Video Business, 1/4/2008
JAN. 4 | Warner Bros. Entertainment this year will begin releasing high-definition titles exclusively in Blu-ray Disc, dealing a severe blow to the HD DVD format.
The studio hopes its decision will help end the format war, and boost the chances of high-definition quickly becoming a vital business. Retailers have long complained that consumers are too confused by two formats to adopt either Blu-ray or HD DVD.
With Warner now in the BD camp, only Universal Studios Home Entertainment and Paramount Home Entertaiment/DreamWorks will produce and market titles in the HD DVD format.
Warner will be joining other BD-exclusive suppliers Sony Pictures Home Entertainment, Walt Disney Home Entertainment, 20th Century Fox Home Entertainment and Lionsgate.
Warner’s shift to Blu-ray becomes effective later this year. All new releases are expected to street in BD and HD DVD through May 2008. However, during those upcoming months, there will be a short lag between the Blu-ray/standard DVD release and the HD DVD release.
“Warner Bros.’ move to exclusivity release in the Blu-ray Disc format is a strategic decision focused on the long term and the most direct way to give consumers what they want,” said Warner chair and CEO Barry Meyer. “The window of opportunity for high-definition DVD could be missed if format confusion continues to linger. We believe that exclusively distributing in Blu-ray will further the potential for mass market success and ultimately benefit retailers, producers and, most importantly, consumers.”
Through last year, Warner had been touting its dual format strategy as a way to maximize high-definition revenue.
But Warner management decided switching to Blu-ray exclusivity was necessary to match increasing consumer demand toward the format over HD DVD. BD does enjoy a far larger hardware installation base, due mostly to the millions of BD-equipped PlayStation 3 consoles sold. Earlier in the year, attraction for the PS3 seemed stalled, but the introduction of a relatively cheap $399 system reinvigorated the gaming system.
“A two-format landscape has led to consumer confusion and indifference toward high-definition, which has kept the technology from reaching mass adoption and becoming the important revenue stream that it can be for the industry,” said Kevin Tsujihara, president of Warner Bros. Home Entertainment Group. “Consumers have clearly chosen Blu-ray, and we believe that recognizing this preference is the right step in making this great home entertainment experience accessible to the widest possible audience. Warner Bros. has worked very closely with the Toshiba Corp. in promoting high-definition media, and we have enormous respect for their efforts. We look forward to working with them in the future.”
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