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14 www.ifa-international.org IFA International • Saturday, 30 th & Sunday, 31 st August 2008
MARKETS & TE CHNOLOGY TRENDS THE DUST HAS SETTLED HOW BLU IS THE FUTURE? By Gary Smith Opening the Blu-ray press conference, Frank Simonis, chairman of the BDA (Blu-ray Disc Association) European Promotions Com mittee, said that the end of the debilitating format war has marked a period of consolidation and rapid growth for the format: “Is Blu-ray still interesting to the press? I hope so because now that the dust has settled we are able to focus on the products and we have a lot of news about that,” he said. “And the BDA itself has grown considerably with over 190 members covering the whole spectrum of companies involved in the process of manufacturing and distributing Blu-ray, from hardware and software manfacturers to studios and, most importantly, we all speak with one voice.” Members now include Apple, Sun, Pioneer, Panasonic, Disney, Dell, HP, Hitachi, Sharp and LG. DISC MEDIA HAS BRIGHT FUTURE Simonis also rebutted stories in the trade press about skipping the disc format entirely in favour of internet-based distribution: “We’re hearing a lot at the moment about whether discs are really relevant any more and my response to that is that network-based distribution solutions are not relevant because those networks cannot handle HD and they cannot deliver content direct to the TV which is where most people want to watch it.” BD PLAYER SALES SET TO BOOM Recent sales figures for both hardware and software seem to indicate that the format is rapidly approaching the tipping point, moving out of the early adopter demographic and being embraced by mainstream buyers. In the first two quarters of 2008, global sales of players reached 1.5 million units, more than the whole of 2007 in half the time and also in the period of the year when consumers tend not to buy electronic goods, the autumn and winter being Frank Simonis, chairman of the BDA European Promotions Com mittee the peak period for such purchases. “On the basis of previous years we expect that the end of year figure will significantly exceed our prediction that we would sell 2 million players in 2008,” Simonis said. “We are also delighted to say that around 15 million movies have been sold in the US and 5 million in Europe. We expect to see sales of around 12 million discs in Europe this year.” There are currently 400 titles available in Germany, with a further 100 to be released before the end of the year, further encouraging a market that is largely driven by new releases, unlike DVD which grew significantly through sales of back catalogue. The successful introduction of BD Live, the interactive application that uses Internet connectivity to enable consumers to download trailers looks set to explode with the imminent introduction of extra features such as Put Yourself In The Movie on Starship Troopers 3 – Marauder, has proved that there is genuine demand for these interactive features. Simon McDowell, SVP at Sony Pictures Home Entertainment offered some insight in to the impact of Blu-ray on consumers: “People in video stores spend up to 50% longer in the aisle when there is a Blu-ray demo running. It’s a whole new way to engage with consumers as are the numerous additions to the BD Live feature which we are currently busy developing,” he said. IFA International • Saturday, 30 th & Sunday, 31 st August 2008 www.ifa-international.org 15
