Sony hopes flatscreen giants win living-room battle

With bigger TVs, the triumph of the BluRay format and plans to provide exclusive content, Sony is taking the fight to its rivals, writes Mike Butcher

IN GRAHAM Greene's classic screenplay for The Third Man, the hero Holly Martins goes in search of an old friend, Harry Lime (played by Orson Welles).

In a ravaged, post-war Vienna, he finds Lime waxing philosophically about the products of war: "In Italy, for 30 years under the Borgias, they had warfare, terror, murder and bloodshed, but they produced Michelangelo, Leonardo da Vinci and the Renaissance. In Switzerland, they had brotherly love, they had 500 years of democracy and peace, and what did that produce? The cuckoo clock."

It's just as well that the chief executive of Sony, Howard Stringer, collects first-edition books by Greene. The products of the wars between Sony and its competitors, from Apple to Samsung and even Amazon, may not need to be quite up to Michelangelo's standard, but to succeed they will have to be good. Very good.

South Korean electronics leviathans - Samsung Electronics and LG Electronics - are battling in Asia for Sony's market share. Simultaneously, the credit crunch in the US means the consumer electronics war is shifting from its US battlefield towards Europe.

Market researcher GfK estimates the size of the flatscreen TV market in Europe will reach €24.6 billion this year, from €10.9 billion in 2007. Key product sizes - 30-inch and 40-inch TVs - will account for 62 per cent of the total. In the year to March, around 75 per cent of Sony's sales came from Europe, the US and Japan.

Although it expects a slowdown in the overall consumer electronics market in the second half of 2008 in western Europe, it sees double-digit growth in the television market. Sony is the world's second-largest LCD TV maker, behind Samsung Electronics. Its goal is to achieve the number one position in LCD TVs globally and in Europe by 2010.

Large-sized flatscreen TVs with high-definition or full HD are invading the living rooms of Europe in large part due to new HD-quality DVD players and the proliferation of HD-TV programmes, many of which, increasingly, are free.

Sony's opening salvo at the IFA consumer electronics show in Berlin this year didn't disappoint. The Bravia ZX1 40-inch TV was revealed at an ultra-slim 9.9mm - the thinnest in the world.

The Motionflow 200Hz Bravia Z4500 TV sent a whopping 200 frames a second across the screen, giving an extremely crisp picture - and the XEL-1 OLED 3mm screen (organic light emitting diode) TV will go on sale in Europe for the first time after launching in Japan.

OLED TVs, which are thinner and more energy-efficient, offer brighter colours than LCD and plasma sets and are expected to be a promising next-generation flat TV. There were new BluRay Disc players capable of full HD. It was the triumph of the BluRay high-definition DVD format over Toshiba's HD DVD format that first signalled Sony could be on the comeback trail. The key moment came last December when Warner Bros threw its weight behind BluRay. It was the culmination of three years of work by Stringer to break down the distinction between the console and the DVD divisions of Sony.

But crossing barriers is part of Stringer's make-up. Born in 1942 in Cardiff, Wales, he went to Oxford University, and then moved to the US with $200 in his pocket. Despite not being a US citizen at the time, he accepted the draft and served in Vietnam. Afterwards, he joined broadcaster CBS and rose to become president, eventually joining Sony as chief executive in 2005 as the first foreign-born chief of a major Japanese electronics corporation.

However, being billed as the man to deliver a BluRay victory was no certainty. "It went down to the wire," says Stringer. "It became clear through movies like Harry Potter that people were buying movies and games for the PlayStation 3, which made it clear to Warners. The PS3 was the deciding factor."

Jokingly, he adds: "You guys would have written my obituary if BluRay had failed. You would have said Howard Stringer, BetaMax 2. RIP!"

The PlayStation might be a BluRay player, but it took its time arriving, and at considerable cost. Sony spent over $3 billion (€2 billion) to get the PS3 to market. Stringer says PlayStation 3 is now profitable, although Sony is still losing money on the hardware.

Another key component for Sony's war on competitors will be its Bravia televisions. The Bravia internet link enables the TV to stream content direct to the home. "We'll be delivering Hancock [the movie] directly onto TV sets before the video release," he says.

"That's the beginning of a dual strategy - PlayStation is downloading, Bravia is a streaming strategy. These are tributaries of the same river. We'll be making sure the TV is the centre of the home more than the PC and, of course, we're in direct competition with Microsoft and Apple."

How important is it to own the content companies, as Sony does with Sony Pictures and Sony BMG? Surely other electronics firms have managed without?

"I'm always surprised when people ask me why we own content - if we hadn't, we couldn't have won the BluRay format war. Content is central to everything we do now . . . If you have content, you can steal a march on your competitors because you can get early access to the content that drives the market and uptake."

To bolster his argument, Stringer refers to Apple's relationship with Pixar and Disney. But for the content rivers to flow, there needs to be a channel. Thus, Sony's target for 2011 is a product portfolio in which 90 per cent of the devices will be capable of networking and connecting wirelessly, allowing the content to pass between their devices.

But there is no shortage of competitors: Canon on cameras, Amazon with the Kindle electronic book and the ever present Samsung. Have they opened too many fronts on which to compete?

"Yes, you can have too many businesses, but those businesses protect us on the downside. A relationship between the hardware and the content is totally key . . . with the exception of Apple, there is no other company that is going to have as many networked devices over the next two years - and the more they talk to each other, the more unique they will become

Sony Sued Over Blu-ray

It seems that Orinda Intellectual Properties USA has filed a suit against Sony based on claims of Blu-ray patent infringement. The patent itself is for "methods for recording and reproducing information via optical disc." For those keeping score at home, such a patent would presumably not only describe Blu-ray, but also all other disc-based content known to man, including CDs, DVDs, and CD-ROMs. Yet, surprisingly, no companies that manufacture such goods have been named in the suit; interesting huh?

Orinda is demanding a jury trial, and seeking an injunction barring Sony from selling the PS3 and any other Blu-ray player. They are also requesting a "reasonable royalty" for their obviously unique and one-of-a-kind idea.

There’s about a 99.9% chance this suit will be laughed out of court, but if these idiots somehow manage to win I’m filing a patent for "an organic device which allows the owner to breathe air by filtering out harsh contaminents and provided oxygen to cells," and then suing every single member of the human race for having the audacity to have a set of lungs without paying me.

-thegamereviews

Samsung loves Blu-ray today but says only “5 years” left

A top Samsung UK executive has demolished Blu-ray’s chances of being relevant for more than about 5 years, if that, in an interview with UK tech site Pocket-link. How “blu” must Sony be feeling with Samsung right now?!

When HD-DVD was dealt its death blow at CES thanks to Warner definitively choosing the Blu-ray format, Sony’s Howard Stringer said at the Blu-ray press launch words to the effect that “We’re all feeling Blu today – in a good way!”

But perhaps Sony is feeling “blue” instead today, at least with its LCD screen manufacturing partner Samsung, after comments to UK tech site Pocket-lint by Andy Griffiths, Samsung’s “Director of Consumer Electronics” in the UK.

Griffiths made some bold statements, saying: “I think it [Blu-ray] has 5 years left, I certainly wouldn't give it 10".

But then he said that 2008 is “going to be huge" for Blu-ray, and that "We are heavily back-ordered at the moment”, clearly suggesting that while Samsung thinks Blu-ray’s future is bleak, right now things are still quite rosy.

He also told Pocket-link about rental sites and stores offering more Blu-ray titles, which ensured that while the Blu-ray format was the HD winner now, that wouldn’t be the case forever.

Samsung believes its future profits will come from OLED technology (organic light emitting diode). Promising better picture quality and colour depth than LCD or plasma, “high manufacturing costs” have prevented its widespread release, although 2010 is being flagged as the year of OLED.

Of course, we’ve also heard of Laser TV in the meantime, and if it too launches by 2010, it could easily be OLED TV’s biggest competitor, with both formats potentially leaving LCD and plasma in the digital dust.


by Alex Zaharov-Reutt

Bluray tech celebrated at Playboy mansion

The infamous Playboy mansion in Los Angeles hosted a recent party which was partly sponsored by Blu-ray.

Blu-ray - known as the Blu Ray Disc (BD) is said to offer more capacity than any other type of entertainment format.

Fans say it gives a higher quality picture than HD (High Definition) TV with more than five times the storage capacity of traditional DVDs and holds up to 25 GB on a single-layer disc and with more channels of surround sound and more types of value added content.

The Entertainment Merchant's Association 2008 Annual Report on the Home Entertainment Industry predicts that BD sales will surpass DVD sales by the year 2012, as 87% of Playstation3 owners report that they're watching Blu Ray movies on the console now.

Others say they're waiting because they find they are upgrading a bit too much.

Matthew Roberts says he hasn't taken the plunge yet but plans to because of the impressive picture quality.

John Reizenstein, a tourist from the UK says he prefers to keep his home entertainment set up simple but may be pushed into conversion shortly.

Blu-ray and Sony Playstation3 hosted a launch party for the ESPY (sports) Awards at the notorious Playboy mansion in Los Angeles recently (July 14, 2008) where Blu Ray movies were playing throughout.

VIP guests had access to the exclusive "Blu Lounge" where they were able to experience Blu-ray technology.

Mark Finer is the Technical Director of the Digital Entertainment Group (DEG) - an industry funded group that promotes digital entertainment.

He says that one third of US consumers have an HD TV in their home and that the figure is growing.

Blu-ray is currently supported by more than 180 of the world's leading consumer electronics personal computer, recording media, video game and music companies and it has the support of seven of the eight major movie studios (Disney, Warner, Sony, Paramount, Fox, MGM and Lionsgate).

New technology

Playboy magnate Hugh Hefner says he appreciates digital advancements and enjoys his regular movie nights.

Jose Canseco, former Major League baseball player admits he's not too up on the new technology He says that younger people seem to be more up to date with developments.

Michael Vartan, a TV and movie actor, jokes he's addicted to his Playstaiton3 but is holding out to upgrade to Blu-ray but is concerned that he will become addicted to it.

Sony's next-generation Blu-ray disc model to enter the market recently is the new 'BD-Live'.

Randy Waynick, the Senior Vice-President of Home Producers Division Sony Electronics, explains how the technology works.

Best Buy is the largest store selling consumer electronics in the US and Canada.

Tara Adams-Clarke, Best Buy's home theatre expert in California, says there is much you can do with BD-Live.

Many movie studios have announced they will begin releasing new movies on Blu-ray Disc at the same time as the DVD.

Amy Jo Smith, Executive Director of the Digital Entertainment Group, explained that BD Live will allow children to talk to their favourite characters on screen.

New Study Finds Low Interest In Blu-ray

A new consumer survey recently released chronicles the woes of the winner of the hi-definition format war: nobody wants it. While consumers were very happy to embrace the DVD standard when it came about because it brought a huge jump in quality over VHS, the pros of switching to Blu-ray are not as obvious. From the article: 'In contrast, while half of the respondents to our survey rated Blu-ray's quality as 'much better' than standard DVD, another 40% termed it only 'somewhat better,' and most are very satisfied with the performance of their current DVD players." Another reason cited was that a Blu-ray investment also dictates an HDTV purchase, something consumers are reluctant to do.'" Maybe it's also that line-doubling DVD players can be had for less than a hundred dollars.

Panasonic DMR-BW500 Blu-ray Disc Recorder

Meet the future of digital TV recording. The BW500 is the first Blu-ray recorder on the Australian market and a good indicator of what to expect in the coming months from the other electronics companies. In addition to being able to burn HD recordings to Blu-ray discs, the BW500 is also equipped with a 500GB hard drive capable of storing up to 72 hours of full HD video (1080p). It features twin digital TV tuners so you can record two programs at the same time while playing back a third. You can pause live TV at the push of a button.

Home movies are catered for, too. Plug in the SD card from your camcorder (AVCHD format only) and you can transfer your videos to the built-in hard disk or burn them to Blu-ray. You can even edit out the unwanted bits via the remote. The Blu-ray burner means that any recording stored on the hard drive can be transferred to a disc. If you want to lend a recording to a friend who doesn't have a Blu-ray player, it can burn regular DVDs as well - scaling down the resolution in the process.

The BW500 picks up the seven-day electronic program guide broadcast by the TV networks, which you can use to set the recording schedule. Programming a recording is thankfully reasonably painless and you can adjust the start and finish times with ease. Significantly for the hearing impaired, it's capable of capturing closed captions in the digital broadcast, which can then be switched on or off during playback, as with subtitles in a DVD.

Of course, it's also a fully fledged Blu-ray player that supports 7.1-channel surround sound and cinephiles will appreciate the 24 frames-a-second playback mode.

The BW500 is Blu-ray Profile 1.1, however, so it doesn't support the new BD-Live features and the firmware isn't upgradeable. Panasonic is throwing in three Blu-ray single-layer 25GB rewritable discs worth $119, which should lessen the sting of being an early adopter.

http://www.panasonic.com.au

Blu-ray DVD format may not dominate for years

Blu-ray stomped HD DVD to become the standard format for high-definition movie discs, but years may pass before it can claim victory over the good old DVD.

Noemi Velazquez, a 44-year-old warehouse worker, can explain why. She took one look at the $399 price tag of a Blu-ray player at a Best Buy store in Glendale, Calif., and kept going.

"I have to admit, Blu-ray is great," she said. "(But) I'm going to wait until they go to half-price."

Analysts, movie studios and the Blu-ray Disc Association, a manufacturing group, all say Blu-ray discs will eventually dominate video sales. The question is when.

Consumers are balking at the $300-plus cost of most Blu-ray players especially because only limited movie titles are available in the format.

"People aren't going to pay three times as much for a platform that's only half-baked," said Steve Wilson, a consumer electronics analyst with ABI Research.

Many also are waiting to see how cable, satellite and online video services play out. But, above all, consumers seem satisfied with standard-definition DVDs and players _ even consumers who upgrade to high-definition TVs that can tap into Blu-ray's sharper picture and clearer sound.

Velazquez said that because she was still paying off a $1,000 high-definition TV she bought in October, she was happy for now to keep watching pay-TV movies and standard-definition DVDs on it.

Sony Corp.-backed Blu-ray was crowned the next-generation video technology in February after Toshiba Corp., creator of the competing HD DVD format, abruptly said it would drop the fight. The move came after Warner Bros. decided to join most other studios by going solely with Blu-ray and video rental chains followed suit.

Manufacturers are planning a souped-up lineup of titles and special features on Blu-ray discs to boost sales this summer and during the coming Christmas season in the hope that Blu-ray can turn around the sagging home video market. And retailers are creating new displays to explain Blu-ray's benefits.

U.S. consumer spending on home video rentals and purchases in all formats, including DVD, HD DVD, Blu-ray and VHS, fell 3 percent to $24.1 billion last year. The figure was expected to drop another 2 percent this year to $23.6 billion, despite a sixfold increase in Blu-ray disc spending to $1.3 billion, according to Adams Media Research.

The Blu-ray increase is not enough to offset an expected 6 percent drop in overall spending on DVDs.

Adams says it could take two more years for Blu-ray sales to put the home video market back on a growth path.

"The group that bought $2,000, 40-inch TVs are the ones that will lead the charge," said Tom Adams, founder of the research firm. "Everyone else will come along when the price comes down."

To jump-start the changeover, studios are beginning to release movies in Blu-ray with enhanced bonus features like picture-in-picture director commentary. The new bells and whistles are meant to entice consumers to plop down as much as $10 extra for a Blu-ray disc compared with a standard DVD.

Blu-ray machine prices are starting to drop. Wal-Mart Stores Inc. began stocking a $298 Magnavox model in mid-May, said spokeswoman Melissa O'Brien. That's cheaper than most alternatives but a hefty price hike from a typical $50 DVD player.

The format also faces sales challenges that DVDs did not when they took over from VHS in the late 1990s. It doesn't save any space compared with DVD, and there's no need to replace a DVD collection once you buy a Blu-ray player because it will play your old discs.

There also is a proliferation of direct-to-home offerings appearing on cable, satellite and the Internet that threaten to stop Blu-ray growth in its tracks. Blu-ray backers say, however, consumers prefer physical copies of movies over virtual ones, especially when some online rental services impose a time limit.

And Blu-ray's adoption curve is similar to _ maybe even faster than _ that of DVDs, backers say. Blu-ray players, now available for three years, cost $100 less than DVD players did at a comparable point in their life cycle, said Dorinda Marticorena, a senior vice president at Warner Home Video, a unit of Time Warner Inc.

"DVD was exactly the same thing. Players were expensive and there were not many titles. Lo and behold, the awareness went up and demand went up," said Andy Parsons, chairman of the association's U.S. promotion committee. "It'll happen in good time."

Blu-ray still has a long, uphill climb. Last year, more than 101 million U.S. households could play DVDs, compared with 3.7 million that could play Blu-ray discs, including those with PlayStation 3 consoles, according to Adams.

But that's double the 1.6 million DVD devices that were in U.S. households in 1998, the comparable second year they were available. By the end of 2008, 14.4 million U.S. households are expected to be Blu-ray compatible, compared with the 9.4 U.S. million households that could play DVDs in year three.

Manufacturers and studios are preparing new offerings to take advantage of a feature known as BD Live, which allows access to enhanced Blu-ray bonus features over the Internet. It's available now on Sony's PlayStation 3 game consoles.

Lions Gate Entertainment Corp. added a BD Live clip-sharing function on its horror flick "Saw IV" and plans to have "Rambo" director Sylvester Stallone conduct an interactive exchange with viewers about his director's cut.

"It makes these discs almost alive," said Lions Gate President Steve Beeks.

The Walt Disney Co. is set to rerelease the 1959 animated feature "Sleeping Beauty" in October in Blu-ray with chat, trivia and video-messaging functions, just as its rerelease of "Snow White" on DVD in 2000 introduced a then-revolutionary animated menu.

"'Snow White' made the mass market wake up to the potential of DVD and helped demystify the technology," said Bob Chapek, president of Walt Disney Studios Home Entertainment Worldwide. "'Sleeping Beauty' on Blu-ray a decade later represents much the same thing."

-© 2008 AP DIGITAL
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