Group Puts $150 Million Toward Promoting HD DVD
A slate of seven entertainment, computer and software manufacturers, and electronics companies have partnered to spend $150 million in trade and consumer marketing to promote high-definition digital-video discs (HD DVD) and to educate consumers on the quality and value of the technology.
Universal Studios, Warner Brothers Entertainment, Inc., Paramount Pictures, Hewlett-Packard Development Co., L.P., Intel Corp., Microsoft Corp. and Toshiba America, Inc. have joined forces to form a new trade organization, the North American HD DVD Promotional Group, Inc., to lead the cause. The non-profit group debuted yesterday at the Video Software Dealers Association 2006 conference in Las Vegas. The conference runs July 11-13.
HD DVDs can hold high-definition videos such as movie or other data. The technology debuted in the U.S. in April and has been pushed by consumer electronic companies such as Toshiba, which introduced a line of HD DVD players in the spring. The technology has been backed by large movie studios and Microsoft, which has plans to add HD DVD drives to its Xbox 360 game consoles by year-end.
The platform competes, however, with an alternative disc format, the Blu-Ray technology touted by Samsung, Apple, JVC, Sony and other hardware companies, as well as content developers such as Disney, Lionsgate and MGM.
Toshiba and NEC, which back the HD DVD format, have gathered their partners and asked each to contribute funds toward the projected $150 million advertising and marketing war chest. The campaign launched yesterday comarkets HD DVD hardware along with hundreds of HD DVD titles expected on store shelves by yearend. The funds will be used for efforts through the 2006 holiday season and into 2007.
The campaign touts HD DVD as "The Look and Sound of Perfect," the cornerstone of the group's efforts. The initiative will be promoted across television, print, online and outdoor channels. A Web site will provide consumers with a listing of the HD DVD launch titles.
"Following this spring's market introduction, we're now adding advertising and marketing muscle to HD DVD to demonstrate our full commitment to bring consumers the best in high-definition entertainment," said Craig Kornblau, president, Universal in a statement. "Surveys are showing that HD DVD is already the No.1 recognized brand name for high definition packaged media."
An 18-wheeler called the HD DVD Mobile Experience will hit the road this summer equipped with HD home-theater technology, PCs, laptops and the Xbox 360, enabling audiences throughout the country to experience HD DVD technology.
San Francisco-based Goodby, Silverstein & Partners will work with the group in planning and executing its marketing campaign.
