HD DVD Promotional Group Hails Sales Gains

LAS VEGAS, July 17:
According to the North American HD DVD Promotional Group, overall HD DVD
hardware sales were up 37 percent between the first and second quarters of this
year, while software sales were up 20 percent.

During the same time
frame, overall Blu-ray hardware sales saw a 27 percent decline from Q1 to Q2,
and Blu-ray software sales were down 5 percent, according to the HD DVD
Promotional Group.

The data, released at the
Entertainment Merchants Association (EMA) Home Media Expo 2007, is based on NPD
reports, Nielsen Netratings reports and point of sale data from the studios.

"The numbers are
clear—HD DVD is steadily gaining momentum and market share," said
Ken Graffeo, the executive VP of HD strategic marketing for Universal Studios
Home Entertainment, and co-president of the HD DVD Promotional Group.
"With HD DVD [consumer electronics] players now at [suggested retail] prices starting at $299 and with strong marketing campaigns around new HD DVD
titles with web-enabled interactive features, we're continuing to raise the bar
for the consumer experience."

Paul Erickson, market
analyst with IMS Research, added: "With the total number of titles
available for each format differing by only 20-30 titles at this time, the
real-world gap in content between the two formats is in actuality not as large
as many would perceive. Consumers in the U.S. and Europe continue to show the
greatest sensitivity to price, rather than content or branding, in their
purchase decision for standalone high-definition players."

HD DVD owners will have
close to 1,000 titles worldwide to choose from by the holidays, including
Warner Home Video’s 300 and
Universal Studios Home Entertainment’s Heroes: Season 1.