Blu-ray Disc AssociationCES 2007

Blu-ray Disc AssociationCES 2007

Blu-ray Disc: The Leader in HD EntertainmentBlu-ray Disc: The Leader in HD Entertainment

AgendaAgenda

• Key Factors for Consumer Adoption – Why Blu-ray Will Win

• The Hollywood Perspective –Announcements & Comments from Seven of the Eight Major Studios

• Q&A

• Key Factors for Consumer Adoption – Why Blu-ray Will Win

• The Hollywood Perspective –Announcements & Comments from Seven of the Eight Major Studios

• Q&A

1. Content Advantage1. Content Advantage

US Titles as of 1/8/07

0

20

40

60

80

100

120

140

160

180

200

Jun Jul Aug Sep Oct Nov Dec Jan

US Titles as of 1/8/07

0

20

40

60

80

100

120

140

160

180

200

Jun Jul Aug Sep Oct Nov Dec Jan

Blu-ray Disc Content AvailabilityBlu-ray Disc Content Availability

Blu-ray Now Leads in Titles Available to ConsumersBlu-ray Now Leads in Titles Available to Consumers

Source: Available to Buy on Amazon.com as of 1-8-07

Content SupportContent Support

• The most important factor for consumers• Seven of eight major Hollywood

studios support BD

• Five are exclusive to Blu-ray • You cannot watch films from these

five studios on HD DVD

• More content means more consumers can be attracted to BD

• More important than any other factor for a format’s success

• The most important factor for consumers• Seven of eight major Hollywood

studios support BD

• Five are exclusive to Blu-ray • You cannot watch films from these

five studios on HD DVD

• More content means more consumers can be attracted to BD

• More important than any other factor for a format’s success

Only on Blu-ray DiscOnly on Blu-ray Disc

Impact of 7 of 8 StudiosImpact of 7 of 8 Studios

1. Pirates of the Caribbean: Dead Man's Chest

2. The Chronicles of Narnia3. Cars4. Harry Potter & the Goblet of Fire5. Wedding Crashers6. Walk the Line7. King Kong8. Over the Hedge9. The Da Vinci Code10. Ice Age: The Meltdown

11. Chicken Little12. Click13. X-Men: The Last Stand14. Talladega Nights: The Ballad of

Ricky Bobby15. Flightplan16. Superman Returns17. The Devil Wears Prada18. High School Musical19. Bambi II20. Grey's Anatomy - Season 2

Illustrates current HD format alignment of releasing studio

DVD sales source: Daily Variety 1/5/2007

The Top Selling 20 DVD Titles in 2006:The Top Selling 20 DVD Titles in 2006:

High Definition Title Demand: USAHigh Definition Title Demand: USA(Title Shipments in Millions)

0

100

200

300

400

500

600

700

800

HD DVD 16 43 61 56BD 43 147 342 628

2007 2008 2009 2010

684

59

190

403

Source: Understanding & Solutions, Ltd. 9/06

BD

HD DVD

2. Hardware Advantage2. Hardware Advantage

Q4 2006: A Big One for BD Players…Q4 2006: A Big One for BD Players…

Samsung BD-P1000(June ‘06)

Pioneer Elite BDP-HD1

Panasonic DMP-BD10

Sony BDP-S1

Philips BDP9000

Sony PlayStation 3

Q2 Q3 Q4

Q4 2006: A Bigger One in Japan…Q4 2006: A Bigger One in Japan…

Market Research indicates that by the end of Q4, 2006 Blu-ray has captured 96% of the high definition player market in Japan

Source: GFK, 12/06

Technology From Leading Brands…Technology From Leading Brands…

• Every major CE company in the BDA is also a major provider of HDTV displays…

• Every major CE company in the BDA is also a major provider of HDTV displays…

The leaders in HDTV technology are also leaders in Blu-ray DiscThe leaders in HDTV technology are also leaders in Blu-ray Disc

BD Hardware Available TodayBD Hardware Available Today

High Definition Video Player Demand Forecast: USA

High Definition Video Player Demand Forecast: USA

0

5

10

15

20

HD DVD 0.85 1.40 0.67 NegBlu-Ray 1.15 3.35 7.80 16.50

2007 2008 2009 2010

Million Units

16.50

2.00

4.75

8.47

BD

HD DVD

Source: Understanding & Solutions, Ltd. 9/06

3. The PlayStation 3 Advantage3. The PlayStation 3 Advantage

PlayStation & MoviesPlayStation & Movies

• Sony has shipped 1,000,000 PS3’s as of Dec. 31, 2006

• A new survey of 10,000+ PS3 owners revealed that:

– 80% of the respondents plan to purchase Blu-ray movies to view on their PS3

– Over 75% of respondents plan to use their PS3 as a primary device for watching movies

• Sony has shipped 1,000,000 PS3’s as of Dec. 31, 2006

• A new survey of 10,000+ PS3 owners revealed that:

– 80% of the respondents plan to purchase Blu-ray movies to view on their PS3

– Over 75% of respondents plan to use their PS3 as a primary device for watching movies

80% of 1,000,000 equals an installed base of 800,000 Blu-ray players hungry for high definition motion picture content80% of 1,000,000 equals an installed base of 800,000 Blu-ray players hungry for high definition motion picture content

Source: Sony Corp.

HD Capable Games Console Sales : USAHD Capable Games Console Sales : USA

0

5

10

15

X-Box 360 (Add-on drives) 0.76 0.75 0.50 0.20PS3 5.00 9.20 9.50 8.50

2007 2008 2009 2010

Million Units

8.70

5.76

9.95 10.00

PS3

X-Box Drive

Source: Understanding & Solutions, Ltd. 9/06

4. Putting It All Together4. Putting It All Together

Blu-ray Disc = Massive SupportBlu-ray Disc = Massive Support

Movies Consumer ElectronicsGamesMusic Computing

The Bottom Line…The Bottom Line…

• Blu-ray Disc resonates with consumers where it matters most:

The largest variety of titles (movies, music, games)

The widest variety of hardware products

The only HD gaming console with built-in HD movie playback

Write-once & rewritable recording formats from day one

Compatibility with DVD

• Consumers have the final word – and the word is Blu-ray

• Blu-ray Disc resonates with consumers where it matters most:

The largest variety of titles (movies, music, games)

The widest variety of hardware products

The only HD gaming console with built-in HD movie playback

Write-once & rewritable recording formats from day one

Compatibility with DVD

• Consumers have the final word – and the word is Blu-ray

Mike Dunn President

20th Century Fox Worldwide Home Entertainment

Mike Dunn President

20th Century Fox Worldwide Home Entertainment

Weekly Sales Rate of BD Movies to More than Triple HD DVD by End of First Quarter 2007

Weekly Sales Rate of BD Movies to More than Triple HD DVD by End of First Quarter 2007

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

10/30

/10

11/6/

10

11/13

/10

11/20

/10

11/27

/10

12/4/

10

12/11

/10

12/18

/10

12/25

/101/1

/111/8

/11

1/15/1

1

1/22/1

1

1/29/1

12/5

/11

2/12/1

1

2/19/1

1

2/26/1

13/5

/11

3/12/1

1

3/19/1

1

3/26/1

14/2

/11

Blu-ray Units HD-DVD Units

Blu-ray Weekly passes HD DVD by

21%

BD Sales 2:1

BD Sales 3:1

Source: 20th Century Fox Home Entertainment

BD Sales 3.5:1

Steve BeeksPresidentLionsgate

Worldwide Home Entertainment

Steve BeeksPresidentLionsgate

Worldwide Home Entertainment

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Kelley Avery President

Paramount Worldwide Home Entertainment

Kelley Avery President

Paramount Worldwide Home Entertainment

David Bishop President

Sony Pictures Worldwide Home Entertainment

David Bishop President

Sony Pictures Worldwide Home Entertainment

Blu-ray BenchmarksBlu-ray Benchmarks

• 700% increase in software sales since mid-Nov. with the launch of PlayStation 3 and additional Blu-ray CE & IT Hardware

• Blu-ray weekly software sales have now surpassed weekly HD-DVD sales

• 82% of survey respondents are more interested in purchasing Blu-ray movies after watching bundled Talladega Nights on their PlayStation 3

• SPHE targeting 90-100 titles for 2007

• SPHE Top 5 Selling Titles to Date in Order:Underworld Evolution, Talladega Nights, Fifth Element, Click, Ultraviolet

• 700% increase in software sales since mid-Nov. with the launch of PlayStation 3 and additional Blu-ray CE & IT Hardware

• Blu-ray weekly software sales have now surpassed weekly HD-DVD sales

• 82% of survey respondents are more interested in purchasing Blu-ray movies after watching bundled Talladega Nights on their PlayStation 3

• SPHE targeting 90-100 titles for 2007

• SPHE Top 5 Selling Titles to Date in Order:Underworld Evolution, Talladega Nights, Fifth Element, Click, Ultraviolet

Coming Soon to Blu-ray from SPHE

Coming Soon to Blu-ray from SPHE

• 1st Qtr New Release Highlights:Casino Royale, March 13 (AVC Encoded)*Gridiron Gang, Jan 16*Open Season, Jan 30 (AVC Encoded)Running With Scissors, Feb 6*Stranger Than Fiction, Feb 27*

• …and Coming Soon:The HolidayRocky BalboaPursuit of HappynessCurse of the Golden FlowerGhost Rider *indicates BD50

• 1st Qtr New Release Highlights:Casino Royale, March 13 (AVC Encoded)*Gridiron Gang, Jan 16*Open Season, Jan 30 (AVC Encoded)Running With Scissors, Feb 6*Stranger Than Fiction, Feb 27*

• …and Coming Soon:The HolidayRocky BalboaPursuit of HappynessCurse of the Golden FlowerGhost Rider *indicates BD50

Ron Sanders President

Warner Bros. Worldwide Home Entertainment

Ron Sanders President

Warner Bros. Worldwide Home Entertainment

Bob Chapek President

Buena Vista Worldwide Home Entertainment

Bob Chapek President

Buena Vista Worldwide Home Entertainment