Toshiba Goes Ahead With Its HD DVD Plans...

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Press Release Source: Toshiba America Consumer Products, L.L.C.

Toshiba Deploys New HD DVD Marketing Initiatives Based on Strong Fourth Quarter Unit Sales

Monday January 14, 12:01 am ET

Mass Market Acceptance Confirms that HD DVD is the Consumer's Choice for Next Generation High Def Entertainment

WAYNE, N.J., Jan. 14 /PRNewswire/ -- Toshiba America Consumer Products, L.L.C. ("Toshiba") today announced that it is stepping up its successful marketing campaign for HD DVD as it experienced record-breaking unit sales in the fourth quarter of 2007. Major initiatives, including joint advertising campaigns with studios and extended pricing strategies will begin in mid- January and are designed to spotlight the superior benefits of HD DVD as well as the benefits HD DVD brings to a consumer's current DVD library by upconverting standard DVDs via the HDMI(TM) output to near high definition picture quality.

As Toshiba achieved the #1 sales volume in the next generation DVD category with an approximately 50 percent market share in 2007, HD DVD is proven to be the format of choice for consumers. Coupled with an 80 percent plus market share of all next generation DVD equipped notebooks for the 4th quarter 2007, the HD DVD format has already paved the way to a high definition digital AV solution by eliminating the boundaries between the consumer's living room and on the go.

HD DVD not only creates the ultimate high definition entertainment experience, leveraging all of the promise of the format such as superior audio/video performance, Web-enabled network capabilities and advanced interactive features - it also has a high-level of compatibility with DVD. With DVD upconversion via the HDMI output, HD DVD players instantly make a movie lover's existing DVD library look better than ever.

"HD DVD is the best way to watch movies in high definition," said Jodi Sally, Vice President of Marketing, Toshiba's Digital A/V Group. "Our HD DVD players not only play back approximately 800 HD DVD titles available worldwide and deliver an entirely new level of entertainment but also enhance the picture quality to near high definition on legacy DVD titles by all studios. In short, we added high def to DVD which already is the de facto standard format created and approved by the DVD Forum that consists of more than two hundred companies."

New Marketing Strategy for Mass Market Adoption

Taking the holiday season sales based on promotional prices into full consideration, these new manufacturer's suggested retail prices (MSRP) are designed to meet the potential demand for HD DVD players in the U.S. market. Effective on January 13, 2008 the MSRP of the entry-model HD-A3 will be $149.99, the HD-A30, with 1080p output, $199.99, and the high-end HD-A35, $299.99.

"While price is one of the consideration elements for the early adopter, it is a deal-breaker for the mainstream consumer," said Yoshi Uchiyama, Group Vice President Digital A/V Group. "Consumer sales this holiday season have proven that the consumer awareness of the HD DVD format has been elevated and pricing is the most critical determinant in consumers' purchase decision of

the next generation HD DVD technology. The value HD DVD provides to the consumer simply cannot be ignored."

Extended Advertising Campaign

Toshiba plans to execute an extended advertising campaign that will further enhance consumer awareness of the benefits of HD DVD and drive sales to retail among potential consumers. Advertising strategies will include television, print and online media channels. Toshiba will also work with its dealers and studio partners on joint marketing and promotional initiatives to promote HD DVD. Current promotions include "The Perfect HD Offer" - a mail-in offer allowing consumers to select five HD DVD titles for free from a selection of 15 with the purchase of any Toshiba HD DVD player.

Consistent Viewing Experience and More

With advanced interactivity and Web-enabled network capabilities built into every HD DVD player through a dedicated Ethernet port as mandated by the specifications approved by the DVD Forum, Toshiba delivers on the promise of a consistent entertainment experience through firmware updates as studios launch new applications. HD DVD allows studios to flex their creative muscle in ways never before seen. The latest of these new experiences is online streaming. Now, when consumers connect their HD DVD player to the Internet, they can stream new content or trailers, as available, directly from a movie studio's server.

Universal Home Video, Paramount Pictures and DreamWorks Animation SKG have reported that an average of 30 percent of HD DVD owners have accessed Web- enabled network features and continue to do so regularly.

Ongoing Customer Commitment

In order to ensure that its customers will receive complete satisfaction from their new players, Toshiba introduced the "HD DVD Concierge" earlier this month. Consumers can now call 1-888-MY HDDVD (1-888-694-3383) for answers to general questions about HD DVD, for operational assistance or for assistance with various promotions.

About Toshiba HD DVD Players

With the HD DVD format, select HD DVD players allow consumers to experience true high def 1080p for extraordinary resolution that matches the latest state of the art 1080p HDTVs. These same players display images at 24 frames per second, the same frame rate used by directors when using film to create motion pictures, for a smoother, more film-like, viewing experience.

Important Notes:

HD DVD with high-definition content required for HD viewing. Up- conversion of DVD content will result in near HD picture quality. Viewing high-definition content and up-converting DVD content may require an HDCP capable DVI or HDMI input on your display device. 1080p capable display required for viewing content in 1080p. Firmware update may be required for some interactive features depending on content, which may also require an always-on broadband internet connection. Some features may require additional bandwidth. To take advantage of web-enabled network content, installing the latest firmware (ver.2.4 for HD DVD player models HD-XA1, HD-A1, and HD-D1; ver.2.7 for HD-XA2, HD-A2, HD-A2W, HD-D2, HD-A2C, and HD-A20; and ver.1.3 for HD-A35, HD-A30, and HD-A3) is required. Web-enabled network features require an always on broadband connection along with specific movie titles that include this form of content. For 24p output, content that was created in 1080p/24 frames/sec is required. Viewing 24p output requires an HD display capable of accepting a 1080p/24Hz signal. Use of REGZA Link, which is a feature based on HDMI-CEC, requires an HDMI-CEC compatible display device. Depending on the specifications of your TV, some or all REGZA Link functions may not work even if your TV is HDMI-CEC compatible. Dolby® Digital Plus, Dolby® TrueHD and DTS® support for up to 5.1 channels (DTS HD® support for DTS® core only). MP3/WMA audio files not supported. HDMI audio output requires connection to a PCM capable device. Because HD DVD is a new format that makes use of new technologies, certain disc, digital connection and other compatibility and/or performance issues are possible. This may, in rare cases, include disc freezing while accessing certain disc features or functions, or certain parts of the disc not playing back or operating as fully intended. If you experience such issues, please refer to the FAQ sections of TOSHIBAHDDVD.COM or Toshiba | Consumer Electronics & Digital Home Entertainment Products for information on possible work- around solutions or the availability of firmware updates that may resolve your problem, or contact Toshiba Customer Solutions. Some features subject to delayed availability. While every effort has been made at the time of publication to ensure the accuracy of the information provided herein, product specifications, configurations, system/component/options availability are all subject to change without notice.

About Toshiba America Consumer Products, L.L.C.

Toshiba America Consumer Products, L.L.C. is owned by Toshiba America, Inc., a subsidiary of Toshiba Corporation, a world leader in high technology products with subsidiaries worldwide. Toshiba is a pioneer in HD DVD, DVD and DVD Recorder technology and a leading manufacturer of a full line of home entertainment products, including flat panel TV, combination products and portable devices. Toshiba America Consumer Products, L.L.C. is headquartered in Wayne, New Jersey. For additional information, please visit Toshiba | Consumer Electronics & Digital Home Entertainment Products.

Toshiba Deploys New HD DVD Marketing Initiatives Based on Strong Fourth Quarter Unit Sales: Financial News - Yahoo! Finance
 
I don't think Toshiba can singlehandedly reverse the tide, but keeping Sony bleeding for another quarter or two would certainly justify the means...
As long as there are at least some movies released in HD.
Way to go, Tosh! F*ck Sony!

I think a press release like that means that an attempt (if such was made) or simply hope that Warner's decision to go BD exclusive
will rally all HD players (Toshiba and Microsoft primarily) behind one - BD - format, hasn't been successful.

Diogen.
 
keeping Sony bleeding for another quarter or two would certainly justify the means

To what end?? Out of spite??

I understand that Toshiba wants to sell all of the hardware they've already manufactured but how many people are going to buy an HD-DVD player because they're cheap without knowing that most future movies are not available on that format??
 
To what end?? Out of spite??
No.
The first rule of business is to make money.
The second is to prevent the competition doing the same. And that's what Tosh does... :)
...how many people are going to buy an HD-DVD player because they're cheap without knowing that most future movies are not available on that format??
That's what we are going to see...
And if they have enough units to sell to ingrane in customers' brains that a hidef player shouldn't cost more than a good DVD upconverter, they can claim their goal achieved.

Diogen.
 
Toshiba probably does not have a choice in this matter. They probably have contracts to continue to support HD-DVD, including hardware promotions. They could be in the unenvyable position of having to spend tons of money supporting and promoting a product as it possibly sinks.
 
I have remained on the sidelines during the BD / HD war, and I have to tell you, recent developments have done nothing to make me want to go out to buy either type of player. The mainstream media is declaring Blue Ray the winner - and it certainly looks like Blue Ray owners will have the most choice of movies for the foreseeable future. I can see three reasons to buy an HD DVD player now:
1) Very attractive price.
2) It will up convert regular DVDs even if I can't get the movies I want in HD DVD.
3) As people dump HD DVD, lots of existing titles may be available at low, low prices.
But despite those advantages, I don't expect to buy one because I doubt there will be any movies released in HD DVD in another year or two, and I don't feel compelled to own an up-convert player for regular DVD's. (DVD's look okay on my old player - not amazing, but okay.)
On the other hand, everything I read about Blue Ray players is that the current ones are not ready for prime time. Features that HD DVD already has are just now coming out on BD. And I'm sure the latest generation BD players will come at a premium price. So I'm still playing the waiting game -
waiting for BD to refine it's players - waiting for BD prices to come down - and waiting for movie studios to finally agree on a format.
There is one thing that could make me much sooner: if one of the high def formats would release a machine that could record in HD in addition to playing back. That would be huge. But I know that's not going to happen (at least not without so much DRM software as to make it unusable.)
 
Toshiba and the companies supporting HD DVD have been pretty shortsighted in this battle with Sony in my august opinion.

One of the major assets of HD DVD was the ability to utilize current pressing equipment to produce the high definition DVDs. This means that older releases that have already been marketed as DVDs could have been re-pressed as HD DVDs at a nominal cost and remarketed at a low, low price--$9.95 or $11.95, that kind of thing. Trying to sell an HD DVD that has been marketed as a VHS release, then a DVD release, then shown on TV, then finally as HD DVD at a $29.95 price is asinine, stupid, and bordering on insanity. Especially when it costs pennies to preduce the actual product, maybe a dollar or dollar and a half.

If Toshiba loses this war, it will be totally because of greed.

But that's just my opinion, and I'm the proud owner of an HD XA2. It's a good machine, but I am bitter because there is no cheap product available for it. I will not pay $29.95 for an HD DVD movie that's 2, 3 or 4 years old. Think about it: IIRC they wanted $34.95 for a copy of Unforgiven, and that must be 10 years old!

Best regards to all, including Toshiba, Paramount, and Universal. Please get with it on marketing of reduced price content.

Fitzie
 
Having been on the sidelines, I must say that I don't know as much about the "behind-the-scenes" stuff as most of you guys.

My questions is, if Toshiba moves forward, and posts massive hardware sales, are the Studios legally bound to stay exclusively with BD, or can they switch as they see fit? I'm just wondering if Toshiba draws this out, could they use their numbers to cause some sort of coup in the other direction in a few months time?
 
Toshiba and the companies supporting HD DVD have been pretty shortsighted in this battle with Sony in my august opinion.

One of the major assets of HD DVD was the ability to utilize current pressing equipment to produce the high definition DVDs. This means that older releases that have already been marketed as DVDs could have been re-pressed as HD DVDs at a nominal cost and remarketed at a low, low price--$9.95 or $11.95, that kind of thing. Trying to sell an HD DVD that has been marketed as a VHS release, then a DVD release, then shown on TV, then finally as HD DVD at a $29.95 price is asinine, stupid, and bordering on insanity. Especially when it costs pennies to preduce the actual product, maybe a dollar or dollar and a half.

If Toshiba loses this war, it will be totally because of greed.

But that's just my opinion, and I'm the proud owner of an HD XA2. It's a good machine, but I am bitter because there is no cheap product available for it. I will not pay $29.95 for an HD DVD movie that's 2, 3 or 4 years old. Think about it: IIRC they wanted $34.95 for a copy of Unforgiven, and that must be 10 years old!

Best regards to all, including Toshiba, Paramount, and Universal. Please get with it on marketing of reduced price content.

Fitzie

I bought Unforgiven at Wally World for $14.95, regular price $18.95. Most older titles at $18.95, new releases at $25-30, and cheaper online.
 
...are the Studios legally bound to stay exclusively with BD, or can they switch as they see fit?
It is believed that most (every?) studio has some sort of contract with HD or BD with some penalty attached for bailing out of it. Other than that - they can do what they want.
I'm just wondering if Toshiba draws this out, could they use their numbers to cause some sort of coup in the other direction in a few months time?
Very unlikely...

Diogen.
 
No.
The first rule of business is to make money.
The second is to prevent the competition doing the same. And that's what Tosh does... :)
That's what we are going to see...

I understand why Toshiba wants to do it. My question is why YOU want it to happen?? Why do you want Sony to bleed for a few more months??
 
Bah...general consumers will never download and install a firmware upgrade. We might, they won't.

Both are doomed. If they give up the DRM, either would fly. In lieu of that, buy stock in people that deliver Video via download. Pick your poison whether it is Satellite or online.
 
got some links?:D
I think it is somewhere in this thread
Arcsoft- alternative to Powerdvd for Hddvd and Bluray? - AVS Forum
This new player is expected to solve even the first problem, but doesn't have a english version released yet.

Having said that, it is really hard to verify since analog equipment costs too much to be as widespread as HTPCs
(Amir used an analyzer for $20K to figure out Nature's Journey doesn't have a 96kHz soundtrack on its BD version).

Diogen.
 

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