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The Group also used the opportunity to announce the joining of four new<br />

manufactures. Onkyo and Meridian were mentioned as with plans to manufacture<br />

HD DVD products, and Chinese manufacturers Alco (Venturer) and Shinco were<br />

quoted with similar plans.<br />

Alpine, a mobile audio equipment manufacturer, also demo at the show an HD DVD<br />

car player.<br />

HD DVD studios also declared plans to manufacture at least 300 new HD DVD titles<br />

during 2007 (raising the total of above 600), of which hybrid HD DVD/standard DVD<br />

discs would become a larger share than today.<br />

Hybrid discs are a feature of the HD DVD format that the HD DVD Promotion Group<br />

made special emphasis on their presentation.<br />

The Group considered important to facilitate the transition from the current DVD<br />

format to the HD DVD format, a transition that also respects the consumer’s<br />

investment purchasing media. The hybrid media would be playable on a current<br />

DVD player as well as on an HD DVD player when the consumer is ready for it.<br />

Titles and Blu-ray Player Sales<br />

25 Blu-ray movies were released during 3 weeks in Jan 07, compared to 11 titles<br />

from HD DVD. Also, according to studio sources, from the volume perspective, two<br />

movies on Blu-ray disc were sold for every one sold on the HD DVD format during<br />

January, perhaps due to the higher number of Blue ray titles released on that period,<br />

perhaps also for the effect of having now PS3 available.<br />

From another perspective, over the first 3 weeks of January Blu-ray outsold HD DVD<br />

on individual titles, Blue Ray’s Crank with 7500 sold units, while HD DVD’s top seller<br />

Batman Begins sold 4100 units, according to studio sources.<br />

The title comparison above is not a clear-cut comparison because the titles appeared<br />

as first release at different times and are not of the same movie, although they were<br />

both considered top sellers on each format during the same period.<br />

However, eProductWars.com, an Amazon related site, the movie The Departed<br />

released by Warner’s (a dual format label) on February 13 has been the title that<br />

sold more units on both formats for the past month, Blu-ray ranks # 36 as topselling<br />

product while the HD DVD version ranked # 45th as of February 8th.<br />

Another sign of market movement is the recent offer made at some retail-store<br />

chains, such as Best Buy, of 2 Blu-ray movies for the price on one (of a selected<br />

group of 6 titles in the $25 range). This type of incentive is needed to create sales<br />

momentum, I have not seen HD DVD doing similar promotions in the same period<br />

(first week of February 07).<br />

Another factor to consider is studio and title variety, all studios except for Universal<br />

Studios Home Entertainment are releasing titles in a constant basis on the Blu-ray<br />

format.<br />

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