'Reliable sources' say Toshiba to drop HD DVD - soon

Alex Zaharov-Reutt
Friday, 15 February 2008 20:10

Opinion and Analysis

Warner, Best Buy and Netflix go Blu-ray exclusive; Blu-ray player and disc sales still far outstrip HD DVD; those up to 50% price cuts had little effect and US $2.7m ‘Superbowl’ ad campaign promoting HD DVD players as great DVD upscalers seems to have flopped: all the world is waiting for now is an official announcement that HD DVD is dead.

An article in the Hollywood Reporter has quoted ‘reliable sources’ as saying that “An announcement is coming soon. It could be a matter of weeks.”

Of course there is no official word yet, with Hollywood Reporter quoting Toshiba America’s VP of Marketing, Jodi Sally, saying that: “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”.

However Sally continued and said that: “Given the market developments in the past month, 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."

As we all know, the ‘death blow’ came when Warner announced during CES that they were going Blu-ray exclusive. Further blows came when Netflix and Best Buy also recently proclaimed exlcusive Blu-ray support.

This caused shockwaves around the world, and soon led Toshiba to drop prices by up to 50%, even spending a reported US $2.7 million on an ad during the US Superbowl touting an HD DVD player’s ability to upscale regular DVDs and make them look better.

But it didn’t work, with sales figures showing Blu-ray players and movies hugely outselling their HD DVD counterparts in the weeks after Warner's announcement and Toshiba's moves to boost sales with price cuts.

So, with HD DVD players now being marketed as DVD upscalers, and with HD DVD movies being sold at discount prices, the end truly does seem near.

So what might happen to prices now that Blu-ray’s major competitor looks set to enter electronic heaven? Please read onto page 2.