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 CeBIT • 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 technology 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 downturn. “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 increasingly 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. ahead." 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 Chairman 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 email@example.com 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 firstname.lastname@example.org 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 photos. 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 bit-stream. 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, email@example.com or Tania Scheer, firstname.lastname@example.org 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, writer 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 technology.” 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, email@example.com or Brendan Sheridan, firstname.lastname@example.org Singulus 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 production BD-R production system has been in use at ISMM and they are the first supplier of recordable Blu-ray Discs in China. process technology 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 email@example.com We are here The Blu-ray Disc Association supports the production of this electronic newsletter. For more information on the association visit the website – www.blu-raydisc.com to help To find out more about any of the topics reported here please email firstname.lastname@example.org Images included within this newsletter have been minimised for ease of emailing. 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