Newsweek: UMD format takes off
Newsweek has interesting article on the major movie studios receiving an unexpected boost from Sony's UMD disc format. In addition to praising the UMD and the PSP for creating another avenue for video sales, the article notes that there are approximately 150 UMD movies available for the PSP, with more than 250 expected by the end of 2005, making it the most widely supported new video format since the DVD launched in 1997.
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"Box-office revenues and attendance figures are down significantly from last year. The DVD's once explosive growth is now slowing. The studios are split over a pair of competing high-definition-DVD formats, raising the prospect of an ugly battle that could confuse and alienate movie lovers. But amid the gloom is an unexpected ray of light: Sony's recently released PlayStation Portable. The PSP is first and foremost a mobile game device, but it also plays music and movies stored on the Sony-created Universal Media Disc format, or UMD for short. And thanks to its stunning widescreen 4.3-inch display, movies and TV shows look terrific on it."
"So far, the UMD video business, projected at roughly $250 million in revenues for 2005, has been nothing but positive for Hollywood. The studios are milking their catalogs by re-releasing older hits like "First Blood" and "Kill Bill" for $20, while newer titles sell for the same price as their DVD counterparts; as a result, UMD revenues in no way jeopardize total earnings. The early success of UMD videos is pushing retailers like Wal-Mart and Virgin to move them from behind glass and onto the store floor, which should boost sales even more."
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