Hardware Blog

Blu-ray DVD titles outsold rival HD-DVD titles by almost 2-to-1 in the first nine months of the year, but analysts expect additional HD-DVD support and new hit releases to “transform” the high-definition DVD battle score in the fourth quarter.

Home Media Research, a division of , said yesterday that U.S. sales of Blu-ray discs, using a Sony Corp.-backed technology, totaled 2.6 million units from Jan. 1 through Sept 30, in comparison with 1.4 million HD-DVD discs sold.

HD-DVD was developed by Toshiba Corp. It is backed by Microsoft Corp. and film studios such as Time Warner Inc.’s Warner Bros. Entertainment Inc. unit.

The division in Hollywood grew deeper in August when Paramount Pictures Corp. and DreamWorks Animation SKG Inc. signed exclusivity deals to distribute their next-generation discs on HD-DVD format for the next 18 months.

Gerry Kaufhold, analyst at research firm In-Stat, said he believes that newly released HD-DVD titles with advanced Web-enabled features, such as Paramount’s , will help the HD-DVD camp in the fourth quarter.

Paramount Home Video said that had the biggest debut of any high-definition titles, selling more than 100,000 HD-DVDs on Oct. 16, its first day of release.

Tom Adams, president of Adams Media Research, also said the 18-month period of exclusivity for HD-DVDs by Paramount and DreamWorks should strengthen HD-DVD’s hand this quarter.

“This definitely smooths out the edge that Blu-ray had in exclusive titles, and it very much strengthens HD-DVD’s hand in the fourth quarter,” Adams said, but he added that he still expects Blu-ray will lead for the year overall.

Adams predicted that for 2007 overall, consumers will spend $186 million purchasing Blu-ray discs, versus $91 million for HD-DVD.

The Walt Disney Co., Sony, News Corp.’s Twentieth Century Fox unit and Lions Gate Entertainment Corp. are exclusively in the Blu-ray camp.

Hollywood and electronics manufacturers had hoped that new high-definition DVDs, with better picture quality and more capacity, would revive the slowing $24 billion home DVD market.

But like the Betamax/VHS battle in the 1980s, the DVD standards war has slowed adoption and created customer confusion. It has also raised the likelihood it will be years before next-generation players become standard equipment.

Since both formats launched in the spring of 2006, an estimated 4.98 million high-definition discs have been sold, including 3.01 million in Blu-ray and 1.97 million in HD-DVD through the end of September, according to Home Media.

One big factor giving Blu-ray an edge has been the popularity of Sony’s PlayStation 3 game consoles, which also include a Blu-ray disc drive.

“It’s going to be 2008 before the dust will really starts to settle. For now, its like watching a yacht race,” said Kaufhold, who expects the standards battle will lead more consumers to buy dual DVD players such as those made by LG Electronics Inc., which supports both Blu-ray and HD-DVD.

Samsung Electronics Co. is expected to market a dual-format player later this year, ahead of the holiday shopping season.