$200 Million Campaign by Tru-Blu for Blu-Ray Is Working

Major marketing initiatives by leading consumer electronics companies, major Hollywood studios and national retailers have placed Blu-ray Disc atop holiday shopping lists. Tru-Blu, a coalition of companies formed to promote Blu-ray Disc, Disney, Fox Studios, Warner Bros., Panasonic, Sony, major retailers and a host of other industry leaders have launched significant 4th quarter marketing campaigns to increase consumer awareness, understanding and adoption of Blu-ray Disc and the home entertainment experience it delivers. And the campaigns, which collectively will tally over $200 million, are working.
 
“As sales numbers have increased throughout the year retailers, manufacturers and the Hollywood studios have become increasingly confident that Blu-ray is rapidly moving from being an early adopter technology to a mainstream consumer product,” said Andy Parsons, Senior Vice President, Product Planning, Pioneer Home Entertainment Group and U.S. Chairman, Blu-ray Disc Association Promotions Committee.  “The marketing dollars we are seeing right now are illustrative of the excitement on the industry side, and the 4th quarter sales numbers indicate that their excitement is well founded, as consumers have been bullish with their hardware and software purchases this holiday season.”
 
In December, independent consumer surveys conducted by Greenfield and Zogby International, respectively found that Blu-ray Disc players and movies rank high on consumers gift lists this holiday season. Greenfield found that Blu-ray players were the number one gift wish for HDTV owners. Similarly, Zogby’s research indicated that only a second HDTV ranked higher than a Blu-ray player on HDTV owners’ wish lists. Earlier in the quarter, consumer research conducted by SmithGeiger found that consumers, particularly HDTV owners, greatly prefer watching movies on Blu-ray discs in comparison to on other platforms such as DVD, streaming video and digital download.
 
The preferences reflected in these surveys have been born out at the check out counter as well. According to NPD Group and DisplaySearch, consumers purchased nearly 150,000 standalone Blu-ray players, not including PS3, during the week of Thanksgiving, representing a 300% increase in sales for the same period last year.
 
The software numbers have been similarly strong. In October, more than 2 million Blu-ray discs were purchased by consumers – a first for the format. According to recent data from the RedHill Group, for the week ending December 6, 2008, software sales topped 1.7 million units in the U.S., nearly 300,000 more units than Black Friday week, accounting for nearly $50 million in consumer spending. And the Warner Bros. blockbuster hit The Dark Knight, released on December 9, has sold more than 1.7 million Blu-ray units worldwide – 600,000 alone on the first day – becoming the best selling Blu-ray title and the first to reach the million unit mark.  

 
With numerous Blu-ray players and PS3’s purchased and opened over the holidays, consumers will have a slate of over 1,000 titles to choose from, including best selling marquee titles such as Hancock, The Dark Knight, Iron Man, Mamma Mia, The Departed, Horton Hears a Who, Wall-E, The Chronicles of Narnia, Prince Caspian, The Incredible Hulk, Wanted and a host of other new releases and great all time favorites. All of the research, marketing initiatives and consumer buzz points to a Blu 2009.