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Old 01-14-2008   #1
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Default Toshiba Deploys New Marketing Initiatives Based On Strong Fourth Quarter Unit Sales

Toshiba America Consumer Products, L.L.C. today announced that it is stepping up its successful marketing campaign for HD DVD as it experienced record-breaking unit sales in the fourth quarter of 2007. Major initiatives, including joint advertising campaigns with studios and extended pricing strategies will begin in mid-January and are designed to spotlight the superior benefits of HD DVD as well as the benefits HD DVD brings to a consumer’s current DVD library by upconverting standard DVDs via the HDMI™ output to near high definition picture quality.

As Toshiba achieved the #1 sales volume in the next generation DVD category with an approximately 50 percent market share in 2007, HD DVD is proven to be the format of choice for consumers. Coupled with an 80 percent plus market share of all next generation DVD equipped notebooks for the 4th quarter 2007, the HD DVD format has already paved the way to a high definition digital AV solution by eliminating the boundaries between the consumer’s living room and on the go.

HD DVD not only creates the ultimate high definition entertainment experience, leveraging all of the promise of the format such as superior audio/video performance, Web-enabled network capabilities and advanced interactive features – it also has a high-level of compatibility with DVD. With DVD upconversion via the HDMIoutput, HD DVD players instantly make a movie lover's existing DVD library look better than ever.

“HD DVD is the best way to watch movies in high definition,” said Jodi Sally, Vice President of Marketing, Toshiba’s Digital A/V Group. “Our HD DVD players not only play back approximately 800 HD DVD titles available worldwide and deliver an entirely new level of entertainment, but also enhance the picture quality to near high definition on legacy DVD titles by all studios. In short, we added high def to DVD which already is the de facto standard format created and approved by the DVD Forum that consists of more than two hundred companies.

New Marketing Strategy for Mass Market Adoption
Taking the holiday season sales based on promotional prices into full consideration, these new manufacturer’s suggested retail prices (MSRP) are designed to meet the potential demand for HD DVD players in the US market. Effective on January 13, 2008 the MSRP of the entry-model HD-A3 will be $149.99, the HD-A30, with 1080p output, $199.99, and the high-end HD-A35, $299.99.

“While price is one of the consideration elements for the early adopter, it is a deal-breaker for the mainstream consumer,” said Yoshi Uchiyama, Group Vice President Digital A/V Group. “Consumer sales this holiday season have proven that the consumer awareness of the HD DVD format has been elevated and pricing is the most critical determinant in consumer’s purchase decision of the next generation HD DVD technology. The value HD DVD provides to the consumer simply cannot be ignored.”

Extended Advertising Campaign
Toshiba plans to execute an extended advertising campaign that will further enhance consumer awareness of the benefits of HD DVD and drive sales to retail among potential consumers. Advertising strategies will include television, print and online media channels. Toshiba will also work with its dealers and studio partners on joint marketing and promotional initiatives to promote HD DVD. Current promotions include “The Perfect HD Offer” – a mail-in offer allowing consumers to select five HD DVD titles for free from a selection of 15 with the purchase of any Toshiba HD DVD player.

Consistent Viewing Experience and More
With advanced interactivity and Web-enabled network capabilities built into every HD DVD player through a dedicated Ethernet port as mandated by the specifications approved by the DVD Forum, Toshiba delivers on the promise of a consistent entertainment experience through firmware updates as studios launch new applications. HD DVD allows studios to flex their creative muscle in ways never before seen. The latest of these new experiences is online streaming. Now, when consumers connect their HD DVD player to the Internet, they can stream new content or trailers, as available, directly from a movie studio's server.

Universal Home Video, Paramount Pictures and DreamWorks Animation SKG have reported that an average of 30 percent of HD DVD owners have accessed Web-enabled network features and continue to do so regularly.

Ongoing Customer Commitment
In order to ensure that its customers will receive complete satisfaction from their new players, Toshiba introduced the "HD DVD Concierge" earlier this month. Consumers can now call 1-888-MY HDDVD (1-888-694-3383) for answers to general questions about HD DVD, for operational assistance or for assistance with various promotions.
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Old 01-14-2008   #2
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Default Re: Toshiba Deploys New Marketing Initiatives Based On Strong Fourth Quarter Unit Sal

Seems they are making it clear that the new price points are not a “fire sale” and they intend to put money into new marketing efforts. With the A3 at $149, I would expect the Venturer & Xbox add-on to fall in the $99 to $129 range soon.

Gosh, I’d love to see them grab another studio (and keep PM, DW & Uni in camp) and make a race out of this again. What do you guys think, any chance of additional studio support for HD DVD?
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Old 01-14-2008   #3
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Default Re: Toshiba Deploys New Marketing Initiatives Based On Strong Fourth Quarter Unit Sal

Well I tend to agree with Electronic house calling it a "Fire Sale"

Toshiba Launches HD DVD Fire Sale
The company is slashing prices and launching a marketing campaign -- but is it too little, too late?

January 14, 2008 | by Rachel Cericola

Looks like Toshiba doesn’t want to go down without a fight—or at least with a warehouse full of HD DVD hardware. In a last-ditch effort to save its high-def format, the manufacturer has launched a players-at-cheap-prices initiative.

The company just announced a marketing campaign that will include advertising HD DVD benefits and cheap hardware prices.

The entry model HD-A3 will run $150, the HD-A30 will cost $200, and the higher end HD-A35 will be priced at $300. The prices are good, but not exactly Walmart’s $99 sale that triggered the high-def holiday season.

“While price is one of the consideration elements for the early adopter, it is a deal-breaker for the mainstream consumer,” said Yoshi Uchiyama, Group Vice President Digital A/V Group. “Consumer sales this holiday season have proven that the consumer awareness of the HD DVD format has been elevated and pricing is the most critical determinant in consumer’s purchase decision of the next generation HD DVD technology. The value HD DVD provides to the consumer simply cannot be ignored.”

That makes sense, but will consumers buy into a potentially dying format? Will the amount of high-def movies reign over cheaper player prices? Or do most not even know the format war has been waging?

We shall see when the new pricing kicks off on January 13.


I'm thinking that it doesn't matter what the price is on players if there isn't any studio support!
I'm guessing all this is going to do is trap unsuspecting consumers who don't keep up with the news.

The sooner the war is over the better.
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Old 01-14-2008   #4
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Default Re: Toshiba Deploys New Marketing Initiatives Based On Strong Fourth Quarter Unit Sal

Well, loooks like potentially there is some fight, let in Toshiba. Lets see what happens when the smoke clears.
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Old 01-14-2008   #5
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Default Re: Toshiba Deploys New Marketing Initiatives Based On Strong Fourth Quarter Unit Sal

Quote:
Originally Posted by 1more4HDDVD View Post
Gosh, I’d love to see them grab another studio (and keep PM, DW & Uni in camp) and make a race out of this again. What do you guys think, any chance of additional studio support for HD DVD?
I think any studio going HD-DVD at this point would just be cutting their own throat & damaging HDM at the same time.
If the studios want HDM to take off they need to support 1 format, that's the only way Joe 6 pack is getting in to HDM.
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Old 01-14-2008   #6
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Default Re: Toshiba Deploys New Marketing Initiatives Based On Strong Fourth Quarter Unit Sal

They need something to happen quick if they are to sustain.

With Warner's announcement just prior to CES the buzz around the show was they are done for. No one seemed to feel HD DVD had a fighting chance, but only time will tell.
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