Blu-ray Disc Association Blu-ray Disc Association CES 2007 CES - PowerPoint PPT Presentation

Blu-ray Disc Association Blu-ray Disc Association CES 2007 CES 2007 Blu-ray Disc: The Leader in HD Entertainment Blu-ray Disc: The Leader in HD Entertainment

Agenda Agenda • Key Factors for Consumer Adoption – Why • Key Factors for Consumer Adoption – Why Blu-ray Will Win Blu-ray Will Win • The Hollywood Perspective – • The Hollywood Perspective – Announcements & Comments from Seven Announcements & Comments from Seven of the Eight Major Studios of the Eight Major Studios • Q&A • Q&A

1. Content Advantage 1. Content Advantage

Blu-ray Disc Content Availability Blu-ray Disc Content Availability Blu-ray Now Leads in Titles Available to Consumers Blu-ray Now Leads in Titles Available to Consumers US Titles as of 1/8/07 US Titles as of 1/8/07 200 200 180 180 160 160 140 140 120 120 100 100 80 80 60 60 40 40 20 20 0 0 Jun Jul Aug Sep Oct Nov Dec Jan Jun Jul Aug Sep Oct Nov Dec Jan Source: Available to Buy on Amazon.com as of 1-8-07

Content Support Content Support • The most important factor for • The most important factor for Only on Only on consumers consumers Blu-ray Disc Blu-ray Disc • Seven of eight major Hollywood • Seven of eight major Hollywood studios support BD studios support BD • Five are exclusive to Blu-ray • Five are exclusive to Blu-ray • You cannot watch films from these • You cannot watch films from these five studios on HD DVD five studios on HD DVD • More content means more • More content means more consumers can be attracted to BD consumers can be attracted to BD • More important than any other factor • More important than any other factor for a format’s success for a format’s success

Impact of 7 of 8 Studios Impact of 7 of 8 Studios The Top Selling 20 DVD Titles in 2006: The Top Selling 20 DVD Titles in 2006: 1. Pirates of the Caribbean: Dead 11. Chicken Little Man's Chest 12. Click 2. The Chronicles of Narnia 13. X-Men: The Last Stand 3. Cars 14. Talladega Nights: The Ballad of 4. Harry Potter & the Goblet of Fire Ricky Bobby 5. Wedding Crashers 15. Flightplan 6. Walk the Line 16. Superman Returns 7. King Kong 17. The Devil Wears Prada 8. Over the Hedge 18. High School Musical 9. The Da Vinci Code 19. Bambi II 10. Ice Age: The Meltdown 20. Grey's Anatomy - Season 2 Illustrates current HD format alignment of releasing studio DVD sales source: Daily Variety 1/5/2007

High Definition Title Demand: USA High Definition Title Demand: USA (Title Shipments in Millions) 684 800 700 600 403 BD 500 400 HD DVD 190 300 59 200 100 0 2007 2008 2009 2010 HD DVD 16 43 61 56 43 147 342 628 BD Source: Understanding & Solutions, Ltd. 9/06

2. Hardware Advantage 2. Hardware Advantage

Q4 2006: A Big One for BD Players… Q4 2006: A Big One for BD Players… Philips BDP9000 Sony BDP-S1 Samsung BD-P1000 Panasonic DMP-BD10 (June ‘06) Sony PlayStation 3 Pioneer Elite BDP-HD1 Q2 Q3 Q4

Q4 2006: A Bigger One in Japan… Q4 2006: A Bigger One in Japan… Market Research indicates that by the end of Q4, 2006 Blu-ray has captured 96% of the high definition player market in Japan Source: GFK, 12/06

Technology From Leading Brands… Technology From Leading Brands… • Every major CE company in the BDA is also a major provider of • Every major CE company in the BDA is also a major provider of HDTV displays… HDTV displays… The leaders in HDTV technology are also leaders in Blu-ray Disc The leaders in HDTV technology are also leaders in Blu-ray Disc

BD Hardware Available Today BD Hardware Available Today

High Definition Video Player High Definition Video Player Demand Forecast: USA Demand Forecast: USA Million Units 20 16.50 15 BD 10 HD DVD 8.47 4.75 5 2.00 0 2007 2008 2009 2010 HD DVD 0.85 1.40 0.67 Neg 1.15 3.35 7.80 16.50 Blu-Ray Source: Understanding & Solutions, Ltd. 9/06

3. The PlayStation 3 Advantage 3. The PlayStation 3 Advantage

PlayStation & Movies PlayStation & Movies • Sony has shipped 1,000,000 PS3’s as of Dec. 31, 2006 • Sony has shipped 1,000,000 PS3’s as of Dec. 31, 2006 • A new survey of 10,000+ PS3 owners revealed that: • A new survey of 10,000+ PS3 owners revealed that: – 80% of the respondents plan to purchase Blu-ray movies to view – 80% of the respondents plan to purchase Blu-ray movies to view on their PS3 on their PS3 – Over 75% of respondents plan to use their PS3 as a primary – Over 75% of respondents plan to use their PS3 as a primary device for watching movies device for watching movies 80% of 1,000,000 equals an installed base of 800,000 Blu-ray 80% of 1,000,000 equals an installed base of 800,000 Blu-ray players hungry for high definition motion picture content players hungry for high definition motion picture content Source: Sony Corp.

HD Capable Games HD Capable Games Console Sales : USA Console Sales : USA Million Units 15 9.95 10.00 10 8.70 PS3 5.76 X-Box Drive 5 0 2007 2008 2009 2010 0.76 0.75 0.50 0.20 X-Box 360 (Add-on drives) 5.00 9.20 9.50 8.50 PS3 Source: Understanding & Solutions, Ltd. 9/06

4. Putting It All Together 4. Putting It All Together

Blu-ray Disc = Massive Support Blu-ray Disc = Massive Support Movies Music Games Consumer Electronics Computing

The Bottom Line… The Bottom Line… • Blu-ray Disc resonates with consumers where it matters most: • Blu-ray Disc resonates with consumers where it matters most: � The largest variety of titles (movies, music, games) � The largest variety of titles (movies, music, games) � The widest variety of hardware products � The widest variety of hardware products � The only HD gaming console with built-in HD movie playback � The only HD gaming console with built-in HD movie playback � Write-once & rewritable recording formats from day one � Write-once & rewritable recording formats from day one � Compatibility with DVD � Compatibility with DVD • Consumers have the final word – and the word is Blu-ray • Consumers have the final word – and the word is Blu-ray

Mike Dunn Mike Dunn President President 20 th Century Fox 20 th Century Fox Worldwide Home Entertainment Worldwide Home Entertainment

Weekly Sales Rate of BD Movies Weekly Sales Rate of BD Movies to More than Triple HD DVD to More than Triple HD DVD by End of First Quarter 2007 by End of First Quarter 2007 350,000 BD Sales 3.5:1 300,000 BD Sales 3:1 250,000 BD Sales 2:1 Blu-ray Weekly 200,000 passes HD DVD by 21% 150,000 100,000 50,000 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 / / / / / / / / / / / / / / / / / / / / / / / 6 1 8 5 2 9 5 2 9 6 5 2 9 6 2 0 3 0 7 4 1 8 5 / / / 1 2 2 / 1 1 2 / 1 1 2 / 3 1 2 2 / 1 1 2 1 1 1 2 3 4 2 / / / / / / / / / / / / / / / / 1 1 1 1 2 2 2 3 3 3 0 1 1 1 1 2 2 2 1 1 1 1 1 1 1 Blu-ray Units HD-DVD Units Source: 20th Century Fox Home Entertainment

Steve Beeks Steve Beeks President President Lionsgate Lionsgate Worldwide Home Entertainment Worldwide Home Entertainment

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Kelley Avery Kelley Avery President President Paramount Paramount Worldwide Home Entertainment Worldwide Home Entertainment

David Bishop David Bishop President President Sony Pictures Sony Pictures Worldwide Home Entertainment Worldwide Home Entertainment

Blu-ray Benchmarks Blu-ray Benchmarks • 700% increase in software sales since mid-Nov. with the launch of • 700% increase in software sales since mid-Nov. with the launch of PlayStation 3 and additional Blu-ray CE & IT Hardware PlayStation 3 and additional Blu-ray CE & IT Hardware • Blu-ray weekly software sales have now surpassed weekly HD-DVD • Blu-ray weekly software sales have now surpassed weekly HD-DVD sales sales • 82% of survey respondents are more interested in purchasing Blu-ray • 82% of survey respondents are more interested in purchasing Blu-ray movies after watching bundled Talladega Nights on their PlayStation 3 movies after watching bundled Talladega Nights on their PlayStation 3 • SPHE targeting 90-100 titles for 2007 • SPHE targeting 90-100 titles for 2007 • SPHE Top 5 Selling Titles to Date in Order: • SPHE Top 5 Selling Titles to Date in Order: Underworld Evolution, Talladega Nights, Underworld Evolution, Talladega Nights, Fifth Element, Click, Ultraviolet Fifth Element, Click, Ultraviolet