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Blu-ray Disc Is…
Blu-ray disc is …

           …Movies
           …Music
           …Games
           …Storage
Blu-ray is a revolution…


         The highest definition picture…
      The best sound you have ever heard…
The richest interactive features and connectivity…
    The most powerful recording capabilities.
Blu-ray has the broadest support…
The most trusted CE brands…




                          88% of CE
                          companies!
The most influential computer brands…
7 major Hollywood studios…




                              90% of DVDs
                             sold last year!
The #1 and #2 music companies…




                                 Over 50% of
                                 music sales!
The only integrated platform
for high definition gaming…




                               Over 35% of
                                 software
                                revenue!*

*Source: NPD, 2005
Why Now…Why Blu-ray?

“Blu-ray is clearly the best choice for customers.”
                                                      --Michael Dell, Chairman & CEO, Dell

“[Blu-ray offers] more gameplay, more sound, more intense graphics,more
   entertainment.”
                          --Kaz Hirai, President & CEO, Sony Computer Entertainment

“[Blu-ray] will capture live music performances like never before.”
                                       --John Legend, Grammy Award Winning Musician

“…the oddsmakers favor Blu-ray…in part [due to] superior technical specifications.”
                                                                    --Fortune
Why Now? Why Blu-ray?

• HDTV market is poised for explosive growth driven by:
   – Increased penetration of large screen Hi Def sets.
   – Expanded Hi Def channel offerings.
• Consumer expectation that their optical media will be Hi Def.
• Blu-ray has demonstrated ability to take full advantage of
  1080p Hi Def technology.
Hi Def TV is building critical mass

     30                                                                   100%

     25
                                                                  70% 80%
     20                                                   62%
                                               54%               25       60%
     15                                46%           22
                               38%           19
                       30%                                                40%
     10                              16
               21%           13
                     10                                                   20%
      5    7

      0                                                                   0%
          2004       2005    2006    2007    2008    2009       2010
            Number of Hi Def TV Sales
            Hi Def TV Sales as Percentage of All TV Sales

                                                                 Source: JupiterResearch HDTV Model, 5/05 (US only)
Strong market opportunity for
high definition packaged media
  90

  80
       Standard Def DVD
  70

  60

  50                    High Definition
                      Home Entertainment
  40
                        Package Media
  30

  20
                                    Hi-Def Cable and Satellite
  10

   0
     97

     98

     99

     00

     01

     02

     03

     04

     05

     06

     07

     08

     09

     10

     11
   19

   19

   19

   20

   20

   20

   20

   20

   20

   20

   20

   20

   20

   20

   20
                                                       Source: DEG / CES/ Kagan
The highest quality experience…

• Picture quality beyond anything available
   – Full capability 1080p/24 resolution in Blu-ray
   – Up to 40Mbps bit encoding – 5x current DVD
• Theater quality “uncompressed” audio
   – Supports 7.1 channels of surround sound
   – Up to 32 streams of audio
   – DTS-HD and Dolby “loss-less” available
• Interactive capability
   – Enhanced and integrated menus, games, hi-def bonus and educational features
   – Java will allow for more dynamic, more sophisticated interactivity
  Blu-ray delivers one common
  format advantage
                             Advanced
                            Interactivity
                                                Set-top Players
PC Storage and
                                                 & Recorders
 Entertainment



                                                Prepackaged
                                                High Definition
   Blank Media                                     Movies




                                               High
         Next Generation,                    Definition
          High-Definition                   Camcorders
             Gaming             Music
  A revolutionary change…




      VHS                  DVD-Video                                                      BLU-RAY DISC

                                                                           HD-DVD   • Digital Hi Def video
• Analog video         • Digital SD video                                           • Hi Def TV recording
• Must rewind/ff       • No more rewind/ff                                          • True 1080p
• Record 2/4/6 hours   • No recording (initially)   • Digital Hi Def video          • Recordability
• Bulky storage        • Small, easy to store       • Hi Def TV Recording           • Gaming
• No interactivity     • Simple interactivity       • Advanced interactivity        • Advanced interactivity
                       • Added/Bonus features                                       • Expandability for new
                                                                                    features/capabilities
Blu-ray & HD-DVD
Myths vs. Reality
Capacity will win the war

                    DVD            HD DVD           BLU-RAY
Single Layer       4.7 GB           15 GB              25 GB
Dual Layer         8.5 GB           30 GB              50 GB
In Development        --       45 GB Triple Layer      100 / 200 GB
                                                       (4 / 8 layer)



          More capacity leads to longer format life!
More capacity for extras …

 HD-DVD                      Blu-ray
              Space
                                                      •   More bonus materials
                for
              Special
                                                      •   More interactive features
 Average
             Features   Average
                         Movie
                                            Space
                                              for
                                                      •   Widescreen/Fullscreen Option
  Movie
 (pristine
                        (pristine
                        quality)
                                            Special
                                           Features   •   Bundled prequels, Second Session
 quality)
                                                          – unlocked through web interface
                                                      •   Bundled video games
                                                          – unlocked through web interface

       HD-DVD                   Blu-ray Disc
       Capacity                  Capacity
       (30GB)                     (50GB)
The best sound you have
ever heard…

                 Stealth

The highest definition picture

               Chicken Little
More interactivity potential

                 Greater Capacity
                         +
           Java Based Authoring Tools
                         =
    Virtually Unlimited Freedom for Creativity
More interactivity potential
Blu-ray Discs are durable
With Blu-ray’s hard coat technology, BD discs are more “family friendly” than DVD
    –Scratch resistant
    –Resists dust accumulation
    –Fingerprint resistant




                    Damage resistant – even with steel wool
Copy protection protects our future.

                             BLU-RAY                              HD DVD
 Content      1.   Adopted AACS                              1.   Adopted AACS
 Protection   2.   BD+ allows the Content Protection to
                   be renewed when a player is hacked,
                   but the CP is transparent to the honest
                   consumer
              3.   ROM-Mark: specifically designed to
                   thwart large-scale mass production
                   piracy by allowing only authorized BD
                   replicators to make discs
Overwhelming support
     Blu-ray             HD-DVD
                CE



                 IT


               Movies



               Music &
               Gaming
Consumer Strategy
Consumer Strategy

 • Blu-ray has the strength of hundreds of individual companies spending
   their marketing dollars against the Blu-ray consumer
 • On top of individual company spends, there will be an unprecedented
   collaborative marketing effort to educate and persuade consumers to
   “experience blu” that features:
    –   1st ever integrated marketing campaign promoting the format over individual products
    –   Integrated Blu-ray consumer press outreach
    –   Cross merchandising sections within retail promoting both hardware and software
    –   In-box promotions and cross category tie-ins
Consumer Targets

                              RETAILERS
   EARLY ADOPTERS                             INFLUENCERS
      Hi Def TV Owners                     Specialist Press / Print
  Home Theatre Enthusiasts                Online / Web-based groups
   Satellite TV subscribers                     Tech Analysts
     TIVO / DVR owners                       Celebrity Endorsers
Retail Launch
 Product Launch 2006

                      Q1-2              Q3-4




May 23rd   BD-P1000                     BDP-S1


                                                 BDP9000




              BDP-HD1        BDR-101A
                           Movie Titles
                           Movie Titles
50 First Dates, The Fifth Element, Hitch, House of Flying Daggers,
A Knight’s Tale, Kung Fu Hustle, The Last Waltz, Legends of the
Fall, Resident Evil: Apocalypse, Robocop, Stealth, Species, SWAT,
The Terminator, XXX, Underworld: Evolution

Crash, Lord of War, The Punisher, Saw, Stargate, T2: Judgment
Day, Reservoir Dogs, Total Recall, Frank Herbert’s Dune, Rambo:
First Blood, See No Evil, The Devil’s Rejects

Twenty titles including: Fantastic Four, The League of
Extraordinary Gentlemen, Behind Enemy Lines, Kiss of the
Dragon, Ice Age, Entrapment, Transporter, Planet of the Apes,
Phone Booth, Kingdom of Heaven, Flight of the Phoenix
                           Movie Titles
                           Movie Titles
Kill Bill: Vol. 1, Hero, Dark Water, Ladder 49, The Brothers
Grimm, The Great Raid , Jay and Silent Bob Strike Back,
Dinosaur

Batman Begins, Charlie & The Chocolate Factory, Constantine, The
Dukes of Hazzard, The Last Samurai, Lethal Weapon, The Matrix,
Million Dollar Baby, Oceans 12, Swordfish, Terminator 3: Rise of the
Machines, Training Day, Troy, Twister, Unforgiven
Four Brothers, Sahara, Aeon Flux , Sky Captain & the World of
Tomorrow, The Italian Job, Tomb Raider, U2: Rattle and Hum,
Sleepy Hollow, We Were Soldiers, Manchurian Candidate,
Mission Impossible, Mission Impossible 2, Mission Impossible 3
Retail
Strategy
Retail Strategies

• Feature placement within CE & Media
  – Messaging and application support in IT & Gaming Depts
• Live demonstration of BD technology—”Join the
  Revolution”
• Clear, consistent consumer message
• Customer education
                          Blu-ray Readiness
• CES 2006 Launch
  –   8 companies announced 10 CE products
  –   4 companies announced 4 PC-related products
  –   7 studios announced 85 specific titles
  –   2 music company announcements
  –   3 blank media company announcements
  –   4 companies made infrastructure announcements
  –   Sony DADC announced worldwide replication plan
  –   BDA announced format spec is complete and licensing begun
                       Blu-ray Readiness
• Post-CES Announcements
  – SPE announced wholesale pricing and 5/23 availability
  – Lionsgate announced 5/23 availability
  – AACS announced interim license for copy protection
     • Disney, Fox, Paramount and SPE announced not
       implementing ICT
Q&A

				
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posted:7/28/2012
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