Thank You Deborah

Deborah, thank you for the TiVo Rewards Referral.

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HD DVD Loses Market Share Again

After a few weeks of clawing back market share from Blu-ray, HD DVD had a major backslide the week ending 2/10. HD DVD fell from 26% back to 19%, giving Blu-ray 81% of the high-def media market. This puts Blu-ray at 77% Year-to-Date, and 65% since inception of the formats.

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Wal*Mart Goes Blu-ray Exclusive, HD DVD Finally Dead?

Toshiba, and the rest of the HD DVD camp, have done a wonderful job of completely ignoring the piles of bad news heaped on HD DVD over the past couple of months. They’ve continued to issue basically the same statement about how they see HD DVD as the better value, vow to continue the fight, etc. Well, the news today is perhaps the bleakest yet. Wal*Mart is dropping HD DVD completely and going Blu-ray exclusive, according to their official blog:

Enough about my family and on to the Wal-Mart plans… by June Wal-Mart will only be carrying BluRay movies and hardware machines, and of course standard def movies, DVD players, and up convert players. Not sure of the short term pricing plans, but history tells us that as more people move to a new technology prices typically go down.

Wal*Mart also issued an official statement:

Bentonville, Ark., Feb. 15, 2008 – Wal-Mart Stores, U.S. today announces that its 4,000 Wal-Mart and Sam’s Club stores will move forward this year with one hi-definition movie and hardware format: Blu-ray. The change will take place quickly over the next several months whereby the retailer will phase out HD DVD offerings and reorganize shelf space. By June, Wal-Mart stores, Sam’s Clubs, www.walmart.com and www.samsclub.com will offer only Blu-ray movies and hardware machines, as well as standard definition movies and DVD players, and up converts.

“We’ve listened to our customers, who are showing a clear preference toward Blu-ray products and movies with their purchases,” said Gary Severson, senior vice president, Home Entertainment, Wal-Mart, U.S. “With the customers best interest in all we do, we wanted to share our decision and timeline with them as soon as possible, knowing it will help simplify their purchase decision, increase selection, and increase adoption long term. We anticipate enhancing our selection with continued great values in hi-definition Blu-ray products, so our customers can further enhance their entertainment experience at home.”

Wal-Mart will continue to sell through remaining HD DVD product, but in less than 30 days customers will see a more predominant move toward Blu-ray in stores, clubs and online. As the nation’s largest retailer, Wal-Mart thoughtfully reviewed all areas and impact in making its decision, and is excited to move forward with one format and share its future plans with customers.

With Wal*Mart dropping HD DVD completely, and Best Buy focusing on Blu-ray, you have the top two retailers of consumer electronics and media both pushing Blu-ray. And Netflix, the top online rental company, is also dropping HD DVD. How many more hits can HD DVD take before they just lay down?

Picked up from CNET News.com.

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This Weekend’s Amazon Unbox Sale

Amazon Unbox celebrates Valentine’s Day with Once and License to Wed for $1.99, Waitress for $2.49, and The Notebook, No Reservations, and Good Luck Chuck for $2.99.

They’re also offering a free download of the 2008 Sports Illustrated Swimsuit Show as well as the first episode of the second season of Jericho, free.

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Is Toshiba Finally Ready To Admit Defeat?

The Hollywood Reporter claims that ‘reliable industry sources’ tell them Toshiba is finally ready to give up on HD DVD and will pull the plug ‘in the coming weeks’. Toshiba, of course, maintains that no decision has been made:

Officially, no decision has been made, insists Jodi Sally, vp of marketing for Toshiba America Consumer Products. “Based on its technological advancements, we continue to believe HD DVD is the best format for consumers, given the value and consistent quality inherent in our player offerings,” she said.

But she hinted that something’s in the air. “Given the market developments in the past month,” she said, “Toshiba will continue to study the market impact and the value proposition for consumers, particularly in light of our recent price reductions on all HD DVD players.”

They also report that, for the week ending 2/10, BD took 81% of disc sales to HD DVD’s 19%. That would be a large backslide for HD DVD from the previous week’s 74:26 split, almost back to the 1/27 82:18 split. And this with heavy discounting on HD DVD players, a Super Bowl ad that reportedly cost Toshiba $2.7 million, and a number of concurrent promotions on both players and media. They also caught a few Blu studio converts that I’d missed:

Blu-ray support among independents is rising. ADV Films, Tai Seng Entertainment, Topics Entertainment and National Geographic have all confirmed they are going Blu-ray exclusive, while more than one indie that was releasing titles just on HD DVD, including Surround Records and Opus Arte, will now offer Blu-ray as well.

This is still firmly in the rumor category, but it really seems inevitable. Toshiba cannot continue to bleed red ink on every HD DVD player they sell. Their deep price cuts were also deep cuts to the corporate wrist. A desperate cry for attention – but one that doesn’t appear to have worked. The only upside could be clearing out stock from their warehouses so they aren’t stuck with too many units when they finally announce that HD DVD is dead.

Picked up from High-Def Digest.

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