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					                               Blu-ray Disc News
                        News and Views from the Blu-ray Disc Association

04 March 2009                   Contents in this issue
                                    •   Blu-ray Disc format growth continues as BDA focuses on IT market at
                                    •   Panasonic, Philips and Sony to establish One Stop Shop Product License
                                        for Blu-ray Disc
                                    •   In the U.S., Sony’s new Blu-ray Disc players and Home Theater Systems
                                        go wireless
                                    •   Pioneer unveils new PC-based BD writer
                                    •   Singulus announces new recordable Blu-ray Disc production process

                                This week sees CeBIT open its doors in Hannover, Germany. The Blu-ray Disc
  Blu-ray Disc                  Association goes into this major trade fair buoyed by new research from specialist

  format growth                 media analyst house, Futuresource Consulting.

  continues as BDA              Their latest research reveals that consumers are on target to buy in excess of 100

  focuses on IT                 million Blu-ray discs (BD) across the USA, Western Europe and Japan this year,
                                with sales of High Definition capable LCD and plasma TVs and continued dramatic
  market at CeBIT               reductions in BD player prices continuing to fuel interest in packaged HD content
                                despite the economic

                                “BD disc sales continue
                                to expand into all major
                                markets and genres,”
                                says Jim Bottoms,
                                Managing Director at
                                Futuresource, “although
                                to date the business has
                                gravitated towards new
                                release titles. In
                                particular, the action
                                adventure genre dominates, appealing strongly to the young male technology
                                adopter, which also closely matches the PS3 owner profile. For some high profile
                                titles, close to 25% of all disc sales have been on BD, while other action adventure
                                titles consistently see BD accounting for over 15% of total sales.
           Jim Bottoms
     Futuresource Consulting    “With more than 1100 BD titles to choose from in the U.S., combined with growing
                                retail support and increased promotional activity, the rise of Blu-ray will offset
                         rapidly declining sales of standard DVD product. By 2012, around 50% of US and
                         35% of Western European video disc retail sale volumes will be Blu-ray.”

                         IT demand will drive further BD format growth
                         CeBIT’s reputation makes it a good platform to showcase IT and PC-based BD
                         applications and this is the focus of a series of 1-2-1 interviews that the BDA
                         European Promotions Committee are staging in Hannover this week.

                                                                              “One of the BDA’s great
                                                                              strengths is the broad base of
                                                                              supporting companies we
                                                                              have working within the
                                                                              organisation to create a disc
                                                                              format that will serve a
                                                                              diversity of markets for many
                                                                              years,” commented Niels
                                                                              Leibbrandt, Chairman, BDA
                                                                              European Promotions Group.
                                                                              "With the leading computer
                         companies, drive and disc manufacturers and software vendors all active within the
                         BDA, we have many of the most creative minds within the IT industry working at
                         integrating Blu-ray within mainstream PC applications."

                         Further research from Futuresource Consulting indicates that the Blu-ray IT/PC
                         market is entering a period of rapid expansion and that this growth will occur on a
                         global basis.

                         Futuresource Consulting
                         forecasts that the major
"The movie market
                         global BD-R/RE markets
has driven Blu-ray
                         will grow from 18 million
Disc to its current
                         discs in 2008 to 130 million
position and we will
                         discs in 2010.
see IT/PC applications
                         Looking at the hardware
contributing to strong
                         market, the analyst house
and sustained format
                         sees major expansion in
growth as we move
                         the three major territories.
                         In the U.S., it predicts an
                         expansion in the BD optical disc drive installed base from 0.6 million in 2008 to 6.9
Niels Leibbrandt
                         million by 2010: in Japan from 0.5 million in 2008 to 4.8 million by 2010; and in
                         Europe from 0.3 million in 2008 to 4.1 million by 2010.
BDA European
Promotions Group         "The movie market has driven Blu-ray Disc to its current position and we will see
                         IT/PC applications increasingly contributing to strong and sustained format growth
                         as we move ahead," commented Leibbrandt. “Blu-ray benefits from one of the
                         strongest concerted development programmes ever seen – it was developed from
                         day one with a variety of consumer needs in mind, including mainstream IT
                               applications. This year and onwards, we will see more and more of these coming
                               on stream.”

                               For more information, please respond to

Panasonic,                     Panasonic, Philips and Sony are currently working with other Blu-ray Disc patent
                               holders to establish a one-stop-shop license for Blu-ray Disc products. This license,
Philips and Sony               which covers essential patents for Blu-ray Disc, DVD and CD, will be introduced in

to establish One               the middle of this year. The license program will be offered by a new independent
                               licensing company that will be based in the United States with branch offices in
Stop Shop                      Asia, Europe and Latin America. The CEO of the new license company will be

Product License                Gerald Rosenthal, former head of IP at IBM and more recently CEO of Open
                               Invention Network.
for Blu-ray Disc
                               “By establishing a new licensing entity that offers a single license for Blu-ray Disc
                               products at attractive rates, I am confident that it will foster the growth of the Blu-
                               ray Disc market and serve the interest of all companies participating in this market,
                               be it as licensee or licensor,” commented Gerald Rosenthal.

                               The three founding companies believe that the introduction of this simplified one-
                               stop shop product license will stimulate the growth of the market for Blu-ray Disc
                               products. Any holder of essential patents for Blu-ray Disc, DVD and CD patents is
                               invited to join this licensing entity as a licensor and also as shareholder.

                               The fees for the new product licenses are US$9,50 for a Blu-ray Disc player and
    Gerald Rosenthal           US$14.00 for a Blu-ray Disc recorder. The per disc license fees for Blu-ray Disc will
                               be US$0.11 for a read only disc, US$0.12 for a recordable disc and US$0.15 for a
                               rewritable disc. As a result of the efficiencies obtained with the combined license
                               offering, the royalty rates for Blu-ray Disc products are expected to be at least 40%
 “By establishing a new        lower than the current cumulative royalty rates for individual Blu-ray Disc, DVD and
 licensing entity that         CD format licenses.
 offers a single license for
 Blu-ray Disc products at      The Blu-ray Disc product licensing program aims to create a level playing field in
 attractive rates, I am        the market for Blu-ray Disc products by introducing special measures to encourage
 confident that it will        companies selling Blu-ray Disc products to comply with their license obligations.
 foster the growth of the      The program also includes measures to easily identify unlicensed products in the
 Blu-ray Disc market and       market and a system to address those who may not have obtained proper licenses
 serve the interest of all     for Blu-ray Disc products.
 companies participating
 in this market, be it as      In this one-stop-shop product license, the new license company will be a single
 licensee or licensor.”        point of contact for licensees, greatly reducing the burden on licensed companies
                               that would otherwise have to report to multiple patent pools.

                               For more information, please respond to
In the U.S.,
                       In the U.S., Sony is adding four new Blu-ray Disc devices to its lineup today,
                       including a stand-alone player with Wi-Fi capability for easy BD-Live access and
Sony’s new             Blu-ray Disc home theater systems with S-AIR wireless audio.

Blu-ray Disc           The BDP-S360 and BDP-S560 stand-alone players and BDV-E300 and BDV-
players and            E500W BD home theater systems deliver full HD 1080/60p and 24p True Cinema

Home Theater
                       output, decode the latest advanced audio codecs, and are BD-Live capable with
                       your broadband internet connection and purchase of external memory.
Systems go
                       “The demands of today’s home theater go beyond pristine picture quality and our
wireless               new Blu-ray Disc product line offers a breadth of technologies that deliver an
                       amazing entertainment experience,” said Chris Fawcett, vice president of
                                   marketing for Sony Electronics’ Home Product Division. “Consumers
                                   don’t want a living room cluttered with wires and the new Blu-ray Disc
                                   product lineup breaks down the wired barriers of the past.”

                                    Offering built-in Wi-Fi wireless network capabilities (802.11N/G/B/A),
                                    the BDP-S560 can easily connect to the Internet through your existing
                                    wireless home network to download and stream BD-Live content
                                    including additional scenes, short subjects, trailers, interactive games,
        Sony BDP-560                and more. It also enables easy firmware updates to assist in keeping
                                    your player up-to-date with the latest Blu-ray Disc media and features.

                                     While compatible with most wireless routers, the BDP-S560 also
                       supports Wi-Fi Protected Setup, for a quick and easy connection to enabled
                       wireless routers. Additionally, the player is Digital Living Network Alliance (DLNA)
                       ready, allowing it to connect to other DLNA compliant devices to share digital

                       Since many consumers own extensive DVD movie libraries, the BDP-S360 and
                       BDP-S560 incorporate Sony’s Precision Cinema HD Upscale technology that
                                converts standard-definition signals (480i) to near HD quality.

                                  The BDP-S360 and BDP-S560 models support 7.1 channel Dolby
                                  TrueHD and Dolby Digital Plus, DTS-HD High Resolution Audio, and
                                  DTS-HD Master Audio decoding as well as bit-stream output via HDMI.

                                 BLU-RAY HOME THEATER SYSTEMS
                                 In the U.S., Sony has also launched two new 5.1 channel Blu-ray Disc
                                 home theater systems, the BDV-E300 and BDV-E500W. The models
                                 are BD-Live capable and support the latest advanced audio codecs
      Sony BDV-E500W             including 7.1 channel Dolby TrueHD and Dolby Digital Plus, DTS-HD
                                 High Resolution Audio, and DTS-HD Master Audio decoding as well as

                       The BDV-E500W features integrated S-AIR wireless audio capabilities. Sony’s S-
                       AIR technology transmits audio up to 164 feet from the main system to wireless
                       rear speakers for simple surround sound (signal and sound quality may vary) or up
                              to 10 individual S-AIR AirStation audio devices (sold separately) throughout the
                              home. The BDV-E300 model is S-AIR ready so users can add optional modules,
                              also sold separately.

                              For more information, please contact Greg Belloni, or
                              Tania Scheer,

                              Pioneer Europe has unveiled its latest Blu-ray writer, the BDR-203BK, that’s
Pioneer                       capable of writing at 8X speeds to Single Layer (25GB SL) and Dual Layer (50GB

unveils new
                              DL) BD-R discs. The product is also compatible with a wide range of Blu-ray, DVD-
                              R/RW, +R/RW, DVD-RAM and CD media types, with other key specifications
PC-based BD                   including: 2X write speed for BD-RE (SL and DL), 16X write speed for DVD-R/+R,

                              8X write speed for DVD-R DL/+R DL and 32X write speed for CDR media.

                              With strong performance and, features to enhance read/write accuracy, the
                              BDR-203BK adds further momentum to the growing demand for Blu-ray devices.
                              While initial Blu-ray writers were aimed at professional users, the BDR-203BK has
                              far wider appeal. The growing community of consumers with large digital image,
                              HD-video and music libraries will especially appreciate the greater convenience of
                              higher capacity media. For instance, an average feature length movie of 135
“Now Blu-ray is cemented as
                              minutes of HD footage requires approximately 19.6GB of storage space. This
the next generation storage
                              demands five single layer DVDs – a job that can be managed by a single BD disc.
and media distribution
                              With digital music, depending on the exact compression format, a 50GB BD disc
format, sales of Blu-ray
                              can store around 12,000 digital tracks.
content and devices have
been strong on the back of
                              The availability
greater consumer
                              of the BDR-
confidence in the
                              203BK (BK
                              denotes that the
                              product is
Brendan Sheridan
                              designed with a
Pioneer Europe NV
                              black front
Multimedia Division
                              bezel), follows a
                              strong Christmas
                              season with Blu-ray movies in particular selling well both in the US and key
                              European markets. “Now that Blu-ray is cemented as the next generation storage
                              and media distribution format, sales of Blu-ray content and devices have been
                              strong on the back of greater consumer confidence in the technology,” says
                              Brendan Sheridan, Product Manager, Pioneer Europe NV, Multimedia Division.
                              “The availability of products such as the BDR-203BK with great flexibility in terms
                              of disc compatibility, extensive DL capacities and faster writing speeds adds to the
                              growing momentum behind Blu-ray.”

                              The optical pickup unit on the BDR-203BK achieves a maximum recording speed
                              of 8X on Single and Dual Layer BD-R media and 2X on BD-RE Single and Dual
                              Layer rewritable media.
                The BDR-203BK includes CyberLink’s Blu-ray Disc Suite 6 to enable the creation
                and playback of BD movies and the creation and playback of DVDs and CDs.

                For more information, please respond to Simon Hart, or
                Brendan Sheridan,

                European Blu-ray Disc replication technology developer, Singulus, has announced
                a new production system including process technology for the manufacture of
announces new   recordable Blu-ray Discs (BD-R).

recordable      For this new development, Singulus is working in co-operation with its long-term
Blu-ray Disc    partner, Info Source Multimedia Ltd (ISMM). Since the beginning of 2008, the new

                BD-R production system has been in use at ISMM and they are the first supplier of
                recordable Blu-ray Discs in China.
                The new system is aimed at the dynamic BD-R recordable Blu-ray Disc market.
                The BD-R will be needed for the recording of High Definition films that are already
                being broadcast by television stations in the USA and will become increasingly
                commonplace throughout Europe.

                Stefan A. Baustert, CEO of Singulus, remarked: "We are absolutely convinced that
                                 the new production system for recordable Blu-ray Discs will
                                 likewise be able to capture a successful market position.
                                 SINGULUS is well positioned to benefit from future business."

                For more information, please respond to

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