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Monday, January 14, 2008
Toshiba Cuts HD DVD Prices by $200

Following the bad press the HD DVD format had received in the CES, Toshiba debuts a new marketing campaign in an effort to attract cash-conscious U.S. consumers.

Major initiatives, including joint advertising campaigns with studios and extended pricing strategies will begin in mid- January, according to Toshiba.

Toshiba's new pricing strategy for the HD DVD players include the availability of the HD-A3 at $149.99, the HD-A30, with 1080p output, $199.99, and the high-end HD-A35, $299.99. Pricing is effective on January 13.

"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 consumers' purchase decision of the next generation HD DVD technology. The value HD DVD provides to the consumer simply cannot be ignored."

Toshiba also plans to execute an extended advertising campaign in en effort to 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.

In addition, 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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