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



                                      Contents in this issue
07 January 2008
                                          •   Warner Bros. announces exclusive support for Blu-ray Disc

CES Special – Day 1                       •   Industry responds to Warner Blu-ray Disc exclusivity pledge
                                          •   World’s first – Panasonic’s new super slim Blu-ray Disc drive
                                          •   Save the date – Blu-ray Disc training forum




                                      This year’s Consumer Electronics Show (CES) in Las Vegas could not have
Warner Bros.                          started with bigger show-stopping news. In a move that could bring to an end the
                                      damaging format war over next-generation DVDs, Time Warner Inc.’s Warner
announces                             Bros. Entertainment has announced that it plans to release High Definition movies
exclusive                             exclusively in the Blu-ray Disc format.

support for Blu-                      Warner Bros., Hollywood’s biggest seller of DVDs, representing about 18 to 20 per
ray Disc                              cent of sales in the United States, was one of the few studios that backed both
                                      formats. All sides of the format war had agreed that it was confusing to consumers
                                      and a stumbling block for a potential multibillion-dollar industry.

                                      Total DVD units fell by
                                      4.5 per cent in 2007,
                                      the first major year-
 “The window of opportunity for
                                      over-year decline since
 High Definition DVD could be
                                      the disc format was
 missed if format confusion
                                      debuted in 1997,
 continues to linger. We believe
                                      according to Adams
 that exclusively distributing in
                                      Media Research.
 Blu-ray will further the potential
                                      Sales fell by 4.8 per
 for mass market success and
                                      cent to $15.7 billion.
 ultimately benefit retailers,
 producers, and most
                                      “The window of
 importantly, consumers.”
                                      opportunity for High                                 Barry Meyer
                                      Definition DVD could be missed if format confusion continues to linger. We believe
 Barry Meyer
                                      that exclusively distributing in Blu-ray will further the potential for mass market
 Chairman and Chief Executive
                                      success and ultimately benefit retailers, producers, and most importantly,
 Warner Bros.
                                      consumers,” commented Warner Bros. Chairman and Chief Executive, Barry
                                      Meyer.
                                   Victor Matsuda, Chairman of the Blu-ray Disc Association Global Promotions
 “Week on week, month on           Committee believes that the news bodes well for the whole entertainment industry.
 month throughout 2007 Blu-        “Week on week, month on month throughout 2007 Blu-ray Disc has been proving
 ray Disc has been proving in      in the retail chain that it is the High Definition format of choice worldwide.
 the retail chain that it is the   Hopefully, this news will help dispel confusion and uncertainty amongst consumers
 High Definition format of         and allow them to buy Blu-ray Disc with certainty that their investment is future-
 choice worldwide. Hopefully,      proofed. What a fantastic way to kick off CES,” Matsuda stated.
 this news will help dispel
                                   In response to the news from Warner Bros., the North American HD DVD
 confusion and uncertainty
                                   Promotional Group abruptly canceled a planned two-hour extravaganza Sunday
 amongst consumers and
                                   night in Las Vegas on the eve of the Consumer Electronics Show, at which it was
 allow them to buy Blu-ray
                                   to preview upcoming releases and show off the latest advances in special features.
 Disc with certainty that their
 investment is future-proofed.
                                   As reported in The Hollywood Reporter, on Friday evening Ken Graffeo, the
 What a fantastic way to kick
                                   Universal Studios Home Entertainment executive vp who serves as co-president of
 off CES.”
                                   the North American HD DVD Promotional Group confirmed rumors that the event
                                   had been canceled.
 Victor Matsuda
 Chairman
                                   "Based on the timing of the Warner Home Video announcement today, we have
 Blu-ray Disc Association
                                   decided to postpone our CES 2008 press conference," a statement from the group
 Global Promotions
                                   said. "... We are currently discussing the potential impact of this announcement
 Committee
                                   with the other HD DVD partner companies and evaluating next steps. We believe
                                   the consumer continues to benefit from HD DVD's commitment to quality and
                                   affordability -- a bar that is critical for the mainstream success of any format. We’ll
                                   continue to keep you updated on new developments around HD DVD."




                                   The decision by Warner Bros. to drop HD DVD in favour of Blu-ray Disc for High

Industry responds                  Definition movies has set the electronics industry abuzz. Announced on the eve of
                                   the Consumer Electronics Show, the move put a single question in the minds of
to Warner Blu-ray                  thousands of industry-insiders heading to the show in Las Vegas: Could the High

Disc exclusivity                   Definition format wars be over?


pledge                             Warner's decision will give Blu-ray Disc an advantage in terms of content. With the
                                   move, five of the big seven Hollywood studios now back Blu-ray Disc with only two,
                                   Paramount and Universal, backing HD DVD.

                                   The Warner announcement certainly put the HD DVD Promotion Group's CES
                                   plans in disarray. Within hours of the announcement, the group cancelled its
                                   scheduled Sunday-evening news conference and subsequent media interviews at
                                   CES.

                                   "They're definitely regrouping and considering their options at the moment, this
                                   could be extremely important," said Tom Coughlin, a storage analyst at Coughlin
                                   Associates. "This could be the beginning of a major pivotal turning point in the
                                   high-def format war, which if we could define the format which is going to win
                                 would be extremely important for the industry because this would free up
                                 consumers to start making decisions on the purchase of their systems."

                                 Better sales would help consumer electronics manufacturers increase production
"I think the war is over. HD     and that would in turn lead to lower prices, said Coughlin. Those lower prices
DVD has lost. It really is       would then lead to better sales and that would help the entire industry, he said.
game-over for Toshiba and
the other vendors.               Warner touched on the format battle's impact on the consumer electronics industry
                                 in a statement announcing its move.
I think Sony's brilliant move
and one of the few they have     "A two-format landscape has led to consumer confusion and indifference toward
made in this effort is putting   High Definition, which has kept the technology from reaching mass adoption and
Blu-ray into PS3"                becoming the important revenue stream that it can be for the industry," said Kevin
                                 Tsujihara, president of Warner's Home Entertainment group in a statement.
Robin Harris
Analyst                          Toshiba said it was "quite surprised" by the announcement from Warner "despite
Data Mobility Group.             the fact that there are various contracts in place between our companies
                                 concerning the support of HD DVD."

                                 "We will assess the potential impact of this announcement with the other HD DVD
                                 partner companies and evaluate potential next steps. We remain firm in our belief
                                 that HD DVD is the format best suited to the wants and needs of the consumer,"
                                 Toshiba said in a statement.

                                 For some, the Warner decision marks the end of the format battle. "I think the war
                                 is over. HD DVD has lost. It really is game-over for Toshiba and the other vendors,"
                                 said Robin Harris, an analyst with Data Mobility Group. "The basic issue is not
                                 technology. It's about distribution, it's about marketing, it's about content and Blu-
                                 ray has been winning the content war for sometime. I don't know why [Toshiba]
                                 keeps pouring money into it, it's time to stop."

                                 Harris credited Sony's inclusion of Blu-ray Disc in the PLAYSTATION 3 with being
                                 one of the instrumental moves in winning the fight for Blu-ray Disc. "I think Sony's
                                 brilliant move and one of the few they have made in this effort is putting Blu-ray
                                 into PS3," he said. Ironically the company has been often criticized by analysts and
                                 the media for the inclusion of Blu-ray Disc in the device as that contributed to a
                                 high price that put many consumers off buying the high-def games console.




World’s first –
                                 Panasonic Communications Co. has started shipping samples of the world's
                                 thinnest (9.5 mm height) internal Blu-ray Disc (BD) drives to personal computer
Panasonic’s new                  manufacturers.

super slim Blu-                  Since Panasonic introduced the industry’s first 12.7 mm high internal DVD Super
ray Disc drive                   Multi Drive in 2003, it has continued to pioneer optical disc drive technology by
                                 making the drive’s profile even thinner, to 9.5 mm and then to 7.0 mm. The
                  company has achieved these breakthroughs by producing key devices in-house
                  and is leading the industry in providing the benefits of Blu-ray discs.

                  Now available to PC manufacturers, the new sample 9.5 mm high BD drives, were
                  accomplished by combining Panasonic’s own technologies such as the low-profile,
                  2-lens actuator and spherical aberration compensation mechanism and an
                  optimized optical design for CD, DVD and Blu-ray disc laser.

                  Due to the increasing need for data volume on personal computers and the gaining
                  popularity of high definition digital images, the demand for Blu-ray discs and BD
                  drives is rapidly rising. Panasonic believes the world’s thinnest BD drive ideally
                  meets these consumer trends as it also provides a high added value for notebook
                  PCs that are also becoming thinner and lighter. Panasonic continues to bring out
                  innovative disc drives through steady improvements in their performance and
                  features.

                  Even with its 9.5 mm high thin profile, the new BD drive features double speed
                  reading and writing for both write-once BD-R and rewritable BD-RE discs. This
                  feature was facilitated through perfecting technologies such as improved light
                  usage efficiency, high-speed recording waveform and broader bandwidth of the
                  light-receiving element.

                  The product is also capable of reading and writing on BD-R DL (dual layer/50GB)
                  and BD-RE DL discs and will be compatible with future organic pigment-type BDs.
                  The new drive is also compatible with three types of optical discs (BD, DVD, CD). It
                  supports reading and writing on four types of BD media (BD-R, BD-RE, BD-R DL,
                  BD-RE DL) and reading of BD-ROMs.

                  In addition, it is capable of reading and writing on seven types of CD/DVD media
                  (DVD-RAM, DVD-R, +R, DVD-RW, +RW, CD-R, CD-RW) and reading of DVD-
                  ROMs and CD-ROMs. Thus, the new drive provides a DVD Super Multi Drive
                  function plus Blu-ray Disc support. Further, it is capable of 8x writing on DVD-
                  R/+Rs, making the handling of DVDs fast and easy. Samples will be exhibited at
                  CES.




Save the date –   Mark your calendar for a Blu-ray Disc Training Forum on January 21-25, 2008 in

Blu-ray Disc
                  Barcelona, Spain. Sun Microsystems and Sony Pictures are hosting a week-long
                  Training Forum targeting timely and relevant topics to the world of programming
Training Forum    and authoring tools. Highlights include Blu-ray Java Programming, Ensequence
                  and Sonic Scenarist training sessions.

                  Blu-ray Disc Training Forum
                  Date: January 21-25, 2008

                  Location: Sun Microsystems Inc, Avda Diagonal 640, Sixth Floor Office 6-B
                  Barcelona Spain 08017
              Hotel Accommodation: Hilton Barcelona, Avda Diagonal 589, 08014 Barcelona,
              Spain Tel: +34 934 957 777. The special room rate at the Hilton Barcelona for this
              event is 196 Euros. A custom reservations link for this room block will be available
              in early January.

              Agenda:
              • Monday and Tuesday, January 21 - 22 - Blu-ray Java Programming, Beginner
              and Intermediate
              • Wednesday, January 23 - Visual authoring of BD-J with Ensequence's on-Q
              Create Suite
              • Thursday, January 24 - Postproduction and Authoring with Sony's Blu-print
              • Friday, January 25 - Postproduction and Authoring with Sonic Scenarist

              If you have any questions, email mktgevents@sun.com




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