Packaged Media and Beyond Conference - MEDIA

Packaged Media and
Beyond Conference
Blu-ray Status Update
April 20, 2012
Victor Matsuda
BDA GPC Chair
BDA GPC Key Activities
Continued PR outreach
Participation in key industry events
Maintaining the main BDA website as well as consumer
websites in 4 regions
BDA Member Seminars (Japan)
Retailer activities
Coordination and support of national promo activities
(EU)
Efforts for social networking activities
Agenda
• Key Metrics
• Key Topics
• Key Activities
U.S. Hardware Growth*+
Over 36 million US households (roughly 1/3) are now Blu-ray
households
The number of Blu-ray Disc households increased by nearly
40% over 2010
HDTV penetration is now nearly 75 million US households
U.S. 3D Hardware*
Initial 3D TV adoption rate exceeding that of
HDTV
By 2013, virtually all Blu-ray players sold will be
3D capable
By 2014, over half of all TV's sold will be 3D
capable
U.S Software Growth+**
Software unit sales grew by over 30% in 2011
Blu-ray accounted for 40.1% of disc sales of the
Top 10 titles released in 2011, up from 27% in
2010
Consumer spending on software surpassed $2B
for the first time ever
U.S. 3D Software*
3D title sales increased by tenfold in 2011
In 2011 the number of 3D titles available
increased to 89, as compared to only 31 in 2010 (58
released in 2011)
*FutureSource Consulting
** Digital Entertainment Group
+IHS ScreenDigest
Research Data Update
April 2012
2012 U.S. software sales (as of March 2012):
27.2 million BD discs sold YTD, a 37.8% increase compared to the
same period in 2011 (17.6M); DVD down 4.9% YOY
Hardware installed base for end of 2011:
36.3 million Blu-ray households* including PS3, a 42.3% increase over
the same point in 2010 (25.5M); 76% set top vs. 24% game-only
Screen Digest hardware projection for end of 2012:
Hardware installed base projected to reach 51.7 million (46%) U.S.
households by end of 2012, representing 42% growth over 2011
*Note: “Households” numbers include multi-player homes
BD Market Overview - USA
BD Player Growth
15
Blu-ray PS3 PS4
12.1
11.1
10.3
12.8
13.1
13.2
13.1
Homes Owning BD Players
10
5
4.3
4.0
3.4
2.52.5
3.8
1.5
4.5
0.7
0.2
2015
2016
0
2010
2011
2012
2013
2014
4.5
40%
BD-Video Title Sales
200
150
100
79
99
122
148
175
200
220
10%
PS3
30.7%
30%
20%
250
Blu-ray
50%
PS4
35.2%
37.9%
42.1%
46.3%
23.9%
17.0%
14.0%
14.9%
14.4%
12.8%
10.3% 11.6%
12.0%
2.1%
0%
2010
2011
2012
2013
5.2%
2014
8.6%
7.6%
2015
2016
Household Saturation (%)
50
0
2010
2011
2012
2013
2014
2015
2016
Sales (M Units)
source: FutureSource Consulting
2012-13 Forecast- U.S.
Moderate growth in BD player market; approx. +9% in
2012, +6% in 2013
More than 37% penetration by 2012, more than 42%
penetration by 2013
Significant growth in BD movie market; approx. +23% in
2012, +21% in 2013
*FutureSource Consulting
*
BD Market Overview – Western Europe
BD Player Growth
10
Blu-ray
PS4
7.5
8
6
PS3
4.64.8
6.2
4.9
8.8
8.4
4.4
4
8.6
4.8
3.4
1.9
2
8.9
3.4
2.2
Homes Owning BD Players
5.0
Blu-ray
25%
1.1
0.4
20%
2016
15%
PS3
PS4
160
140
120
100
80
60
40
20
0
2011
2012
2013
2014
BD-Video Title Sales
2015
128
141
15.0%
8.8%
5%
111
92
0%
73
43
10%
10.7%
11.3%
11.7%
11.6%
10.5%
7.6%
4.3%
2010
56
23.4%
18.4%
0
2010
21.3%
1.1%
2011
2012
2013
3.0%
2014
8.7%
5.6%
2015
8.1%
6.6%
2016
Household Saturation (%)
2010
2011
2012
2013
2014
2015
2016
Sales (M Units)
* Data relates to top 16 European markets.
source: FutureSource Consulting
2012-13 Forecast- Europe
Moderate growth in BD player market; approx. +20% in
2012, +12% in 2013
More than 19% penetration by 2012, more than 23%
penetration by 2013
Significant growth in BD movie market; approx. +30% in
2012, +26% in 2013
*FutureSource Consulting
2011 Japan key metrics
More than 90% of BD/DVD recorder market is Blu-ray,
and Blu-ray recorders sales were approx +50% vs. PY
More than 40% of PC market is Blu-ray
Approx ¼ of blank media market is Blu-ray
Approx ¼ of packaged media market is Blu-ray, and Bluray movies sales were approx +35% vs PY
2012 Key topics
Blu-ray and digital distribution
Recordable Blu-ray
Blu-ray Disc - Ultimate Ownership
Blu-ray Disc is the ultimate way to own a movie
• The best HD home theater experience
• Maximum flexibility to stream and download
to multiple devices
• Digital extensions (Digital Copy, UV, etc.) enhance the
ownership experience of owning a Blu-ray title
While online transactions are growing,…
2012 movie revenue:
Physical $11.1B, online $1.7B*
2016 movie revenue:
Physical 75%, online 17%*
* IHS Screen Digest
2012 Key topics
Blu-ray and digital distribution
Recordable Blu-ray
Billions of Photos and Video Clips At Risk
• Consumers are accumulating large libraries of
digital photos and video clips
• More than 20 billion photos taken yearly in U.S.*
• HD video capture is now a common feature
• Photos are often stored on a single hard drive
or on Internet photo services
• Unlike film and videotape, digital content has
no physical media to fall back on
*Source: Photo Marketing
Association
Not Just a Theoretical Problem…
• Moms who blog
told us about their
experiences with
lost photos
Recordable Blu-ray Offers a Solution
Removability & Compatibility: Blu-ray Disc offers 25GB and 50GB
recordable media options for use with players
Stability: Blu-ray is a highly stable consumer publishing format that
will be around for many years
Inexpensive: Cost per gigabyte is very low (approximately $.07 per
GB for write-once BD-R discs on 25-disc spindles)
Accessibility: Allows photos and HD videos to be enjoyed on HDTVs
via Blu-ray players (home theater vs. computer)
Easy to Share: Discs can be distributed to others at very low cost
Example of BDA Outreach: 2Wired 2Tired
Authoring of BD Disc on PC
Final result: Playback on BD Player
An Elegant and Effective Solution
• Recordable Blu-ray Disc offers two simultaneous
solutions to an insidious problem:
• A backup method that also allows inexpensive
duplicate storage in offsite locations
• A way for personal photo and video content to
be enjoyed by more people on HDTVs
China: China Consumer Electronics Fair
 April 10-12, Shenzhen
 BDA participation strongly supported by CVIA
 Prominent booth featuring 9 Chinese exhibitors (TCL, Desay,
GEIC, Hualu, Seastar, Juda, Malata, Sansui, Hualu Publishing,
and 5 foreign exhibitors (Sony, Panasonic, Philips, Pioneer,
Sony DADC)
 Media interviews
Virtual Roundtable
The 18th BDA JAPAN Seminar
Date: Nov. 16th 2011
Venue: Tokyo, Japan
(Meguro-Gajyoen)
• Enrollment：148p (126p)
＊ ( ) ： previous seminar’s data
• Attendance ：126p (109p)
Attendance Rate ：85%
BDA CONFIDENTIAL
The 18th BDA JAPAN Seminar Agenda
 BDA Activity Report
1) JTC report
Chief editor’s presentation
2) Compliance Committee Report
3) Promotion Committee Activity Report
- Official Website, - Collaboration with JRIA
 Special Session
Invited Special Speech #1
Market analysis report by GfK Japan
Kinema-Junposha’s Session
1. Consumer research/analysis report
and suggestions to the industry
2. Panel discussion
Big-name creators and analyst
Invited Special Speech #2
According to research,
the most efficient way to promote
BD is users’ real experience.
From that point of view, limited line-up
of BD titles at rental shops is one of
the biggest problems.
Also, the poor line-up for some
categories such as music or Japanese
movies is the other reason why BD
market in Japan is still small.
Yearend speech by popular AV Analysts
BDA CONFIDENTIAL
DEG Japan / BDA Joint Brochure 2011
1. Size： Ａ５ (210mm×148mm, same size as the previous one)
2. Number of pages： 44 pages
3. Circulation： 500,000 copies
4. Distribution： approx. more than 5,000 shops of electronics
retail stores and CD stores around Japan.
5. Distributed to stores on Middle of November.
Participant companies
Hollywood studio/Japanese content companies : 16 companies
Hard manufactures : 2 companies
Other companies : 1 company
Total 19 companies
BDA CONFIDENTIAL
3 Big Promotional Items on brochure
Blu-ray3D
“Combo” products Catalogue titles
Combo means BD/DVD
package.
BDA CONFIDENTIAL
Blu-ray Moments coverage
Blu-ray Disc Reporter
Blu-ray Disc Reporter