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Reuters.com Rivals in DVD format battle await consumer response (serenity mention)Chris M. Walsh Saturday 22 April 2006, by Webmaster NEW YORK (Billboard) - The HD DVD vs. Blu-ray war has hit the streets. HD DVD, one of two next-generation formats angling to take over the DVD market, officially launched mid-April with a miniwave of titles and players hitting stores. The studios are heralding a new era of home entertainment, but analysts, retailers and executives wondered aloud whether consumers would care. A total of four HD DVD releases hit stores, three from Warner Home Video — "The Last Samurai," "Phantom of the Opera," "Million Dollar Baby" — priced at $28.99, and one from Universal Studios Home Entertainment, "Serenity," priced at $34.98. Universal plans to release nine additional titles in the coming weeks; Warner plans 17 more. Two HD DVD Toshiba players — one priced at $500 and one at $800—began hitting shelves at Best Buy, Sears and Wal-Mart and were in 3,000 stores by April 21, according to Jodi Sally, VP of marketing for Toshiba America Consumer Products. "We’re filling the pipeline to retailers and sales reports so far are very positive," Sally says. Billboard called more than a dozen retail locations in California, Illinois, Massachusetts, New Jersey and New York and found more than half had the Toshiba players in stock. A quarter of the stores had sold out, but no store carried more than three units — an indication of retail expectations. "We’re encouraged by everything we hear so far, but we also know there’s a long way to go to get high-definition product into the marketplace and sold not only to early adopters but to the mass market," says Steve Nickerson, senior VP of marketing management for Warner. "People aren’t clamoring for the next generation of DVD," says Laura Behrens, analyst for Gartner Consulting. "It’s too complicated, too expensive, and they don’t see the benefits." The format war isn’t helping; analysts say most consumers will wait until a winner emerges before investing in the technology. "That’s one of the bigger barriers," Forrester Research analyst Ted Schadler says. "A consumer will need an HD TV, special cables and, of course, a player." Blu-ray, the other next-generation format, is expected to have titles hitting the market May 23, but players aren’t expected for a month after that. Ultimately, the gaming industry may play an important role in introducing consumers to HD technology. Microsoft is bringing an HD DVD-compatible Xbox into the market later this year, and Sony will offer a Blu-ray-enabled PlayStation in November. Larry Mansdorf, DVD/audio buyer for Newbury Comics, says expectation for HD products were high at the New England 26-store chain, but "it’s going to be a work in progress as the format war plays out." |