DVD manufacturers in fierce battle to retain market

Jan 10, 2008

HD DVD backers are reeling at the world's top consumer electronics show in the wake of a major blow by rival, Blu-Ray, in the battle to be the reigning format for high density DVDs.

HD DVD backers are reeling at the world's top consumer electronics show in the wake of a major blow by rival, Blu-Ray, in the battle to be the reigning format for high density DVDs.

Warner Brothers studio pulled out of an alliance with Toshiba's HD DVD camp and switched sides, announcing on Friday that Hollywood's largest distributor of DVDs will do so exclusively in Sony's Blu-Ray format.

HD DVD Promotion Group cancelled a press conference it had planned for the eve of Monday's formal start of the Consumer Electronics Show in Las Vegas.

“Based on the timing of the Warner announcement, we decided to postpone our 2008 press conference” the promotion group said in an e-mail to news reporters.

“We are discussing the potential impact of this announcement with the other HD DVD partner companies and evaluating next steps.”

Toshiba America Consumer Products chief executive, Akio Ozaka, said the Japanese electronics giant is “surprised and particularly disappointed” by Warner's decision but remains committed to the HD DVD format.

Toshiba rolled out the third-generation of its HD DVD players recently in a preview to news reporters attending the conference. “As you can imagine, this is a tough day for me,” Toshiba vice president of marketing, Jodi Sally, said while unveiling the possibly endangered DVD player product line.

“It is difficult for me to read all the pundits declaring HD DVD dead. But, we have been declared dead before. We firmly believe HD DVD is the best format for consumers.”

Toshiba reported that its HD DVD player sales were the best ever in its last financial quarter.

Blu-Ray movie DVDs outsold HD DVD disks two to one in 2007, according to Sony senior vice president of home products Randy Waynick.

AFP

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