Sony UMD given its last rites

[OrangeSoul]

Exactly a year after it was launched in the United States, the Sony PlayStation Portable's days as a hand-held movie-viewing device might be numbered.

Disappointing sales have slowed the flow of movies on the proprietary Universal Media Disc to a mere trickle. At least two major studios have completely stopped releasing movies on UMD, while others are either toying with the idea or drastically cutting back.

And retailers also are cutting the amount of shelf space they've been devoting to UMD movies, amid talk that Wal-Mart is about to dump the category entirely.

Wal-Mart representative Jolanda Stewart declined comment on reports that the retailer is getting out of the UMD business. But studio sources say such a move is imminent, and a check Wednesday of a Wal-Mart store in Santa Ana, Calif., revealed a drastic shrinkage of UMD inventory. Several shelves of movies in the PSP section were gone; all that remained were seven UMD titles sitting bookshelf-style on the top of the PSP section, with no prices or other information.

Universal Studios Home Entertainment has completely stopped producing UMD movies, according to executives who asked not to be identified by name. Said one high-ranking exec: "It's awful. Sales are near zilch. It's another Sony bomb -- like Blu-ray."

(Sony, in fact, vowed Wednesday to stick by the announced May 23 street date for the studio's first batch of Blu-ray Disc titles despite reports that the next-generation hardware needed to play the discs likely won't arrive in U.S. stores until the following month at the earliest.)

Paramount Pictures Home Entertainment also is said to be out of the UMD business. "We continue to evaluate the PSP platform for each title, and if it makes sense for business reasons and the target audience, we will release them," spokeswoman Brenda Ciccone said. "Our focus right now is much more aimed at HD (high-definition) at the moment, though."

A high-ranking executive was more blunt: "We are on hiatus with UMD," he said. "Releasing titles on UMD is the exception rather than the rule. No one's even breaking even on them."

Also out of the UMD business is Image Entertainment, while other studios -- including 20th Century Fox Home Entertainment and Buena Vista Home Entertainment -- have drastically slashed release schedules.

"No one's watching movies on PSP," said the president of one of the six major studios' home entertainment divisions. "It's a game player, period."

Observers speculate the studios released too many movies, too fast. Within five months of the PSP's March 2005 launch, 239 movie and TV titles already were either in the market or in the pipeline -- a significantly higher tally than games, according to the DVD Release Report.

But while sales were initially strong -- two Sony Pictures titles even crossed the 100,000-unit threshold after just two months -- the novelty quickly wore off, observers say. The arrival last fall of Apple's video iPod only hastened the PSP's decline as a movie-watching platform.

Benjamin Feingold, president of Sony Pictures Home Entertainment, was a big believer in PSP as a movie-watching platform. He still is, even though he concedes retail shelf space for UMD movies is on a sharp decline and his own studio is being "more selective" in choosing movies for UMD release.

Feingold believes the PSP's biggest drawback as a movie-watching device was the inability to connect the gadget to TV sets for big-screen viewing, "which would have made it more compelling," as well as the inclusion of memory stick capability.

"I think a lot of people are ripping content and sticking it onto the device rather than purchasing," he said.

But next week, Sony Computer Entertainment executives will begin making the rounds of the Hollywood studios to discuss plans for making the PSP able to connect to TV sets.

"We're hoping the format's going to be reinvigorated with next-generation capability that may include living-room or normal television playback," he said.

http://news.yahoo.com/s/nm/20060330/tc_nm/...salmediadisc_dc

[jackwanders]

I kinda figured this would happen. Watching the Spider-Man 2 UMD that came w/ my PSP was kinda neat, but if I have 20 bucks, I'm not going to buy the UMD when I can buy the DVD and get a better picture, more extras, etc.

For the UMD movie to have survived, I would think the price point would have to be a little closer to $10, not $20. Or perhaps sell the double-pack DVD/UMD combo for $25.

No worries, the PSP is much better as a gaming handheld anyway. If people want to watch movies, they'll load 'em onto their memory sticks.

[velocity3k]

Retail reports are suggesting that Wal-Mart may be about to quit the UMD movie market, following a downward trend in sales. Hollywood studios are abandoning the format.

Image Reuters reports Hollywood sources saying that Wal-Mart is pulling out of UMD. The reports adds that UMD sections at retail are shrinking fast.

One unnamed president of a major studio is quoted as saying, "No one's watching movies on PSP. It's a game player, period."

Universal Studios Home Entertainment has ceased UMD production. One exec told Reuters, "Sales are near zilch. It's another Sony bomb."

Paramount is also considering its future with PSP's format. An exec said, "We are on hiatus with UMD. Releasing titles on UMD is the exception rather than the rule. No one's even breaking even on them."

Image Entertainment has moved out of UMD while 20th Century Fox Home Entertainment and Buena Vista Home Entertainment have reduced commitment.

Source | http://www.next-gen.biz/index.php?option=c...d=2626&Itemid=2

Both Universal & Image Entertainment have announced that they have abandoned the UMD format for future Movie Releases. Although Sony had hoped that this would be one of the major selling points for the handheld.

One Universal executive told the Hollywood Reporter: "It's awful. Sales are near zilch. It's another Sony bomb."

To make matters worse, many other studios such as Paramount, 20th Century Fox and Buena Vista are looking at there approach to the release of UMD's and have recently reduced release schedules.

Paramount spokeswoman Brenda Ciccone said: "We continue to evaluate the PSP platform for each title, and if it makes sense for business reasons and the target audience, we will release them.

"Our focus right now is much more aimed at HD at the moment, though."

With the need for the PSP to able to connect to a TV for a UMD purchase to make sense, I think that the UMD craze is bound to stay stagnant. Purchasing the Special Edition DVD, and using XVid or PSPVideo 9 to make the movie available on the PSP just makes more sense.

[seta-san]

finally... maybe the psp will NOW be able to start focusing on games rather than multimedia functions.

[BroChaos Veteran]

well what do they expect when they cost more than a DVD? i honestly have interest, just not at that price. don't they do consumer surveys to learn this stuff?

[Hastin]

The downfall was that they were/are WAYYYY to expensive. I shouldn't have to pay MORE than a DVD to enjoy it on my PSP.

[BroChaos Veteran]

merged.

[Andrew Lyle Global Moderator]

god i hate UMD's.. very good idea, but i see no point in it. a smaller movie, less quality, the same price as a regular DVD.. and when the PSP is fazed out, and the DVD player isn't.. i can keep on watching it.. :p

[Danrarbc]

finally... maybe the psp will NOW be able to start focusing on games rather than multimedia functions.

Yeah, this is a good thing in my book. They can say what they want, but the movie functions definately seemed to distract Sony from the game playing aspects of the unit.

[Bwizzel-B]

Well, with the release if the new 4 gig memory duo sticks, it's alot easier to tote around movies than it was. I have the 4gb HD and two of the 4gig sticks, so I can carry quite a bit of video around when I choose to. Mostly, I play games and listen to music on mine.

The only way UMD movies will take off is if they start putting out porn titles, mark my words! :laugh:

[KC]

When I seen how much UMD's and games cost for the PSP I decided not to get it.

[L3thal Veteran]

If anything, they should have lowered prices on those PSP DVDs. Look at the result :whistle:

[Ji@nBing]

No one wants them when you can just rip a movie to the memory stick and watch from there. And why the hell would you want to spent $20 on a movie you can only watch on the PSP? $5-10 is a more reasonable price point for them. I'll bet anything if they were $5-10, it would have been a success. As soon as I saw them, especially at that price, I knew it would a another Sony format faliure.

Also this idea of hooking up the PSP to a TV is funny to me. Sure, it sounds like a cool idea and I would actually love to be able to do that with my DS, but Sony needs to stop focussing so much on more and more features for the PSP and focus on making some f^cking games!!!. It is after all first and formost a gaming machine, and it's lineup really isn't too hot right now.

[BroChaos Veteran]

i wouldn't knock the lineup too much. i understand what you are saying, but daxter and syphon filter just came out, and both were well received.

[Ji@nBing]

i wouldn't knock the lineup too much. i understand what you are saying, but daxter and syphon filter just came out, and both were well received.

Yeah, it is improving a bit, but if you compare it to the DS's lineup, there is no comparison. Sony needs to do A LOT more in both developing games themselves for the PSP and encouraging 3rd party development. Right now there really aren't any games that would make me feel like I must have a PSP. How many must have games are there for the DS? Quite a few IMO. I'm not trying to make this a DSvsPSP debate, but I can't help comparing the two's lineups and wonder what Sony is doing.

[firen]

Funny, Sony never seems to learn. I am glad this happened because this way they will attempt to lower prices for movies and focus more on games...i hope.

The weird thing is Sony scores third in brand trust surveyonly being beat by Dell and Bose.

Edited March 31, 2006 by Firen

[S7R1K3R]

Well, with the release if the new 4 gig memory duo sticks, it's alot easier to tote around movies than it was. I have the 4gb HD and two of the 4gig sticks, so I can carry quite a bit of video around when I choose to. Mostly, I play games and listen to music on mine.

The only way UMD movies will take off is if they start putting out porn titles, mark my words! :laugh:

Do you have enough battery power to run all those movies? Or do you carry around like 5 batteries LOL

[NeoNut]

Anyone notice the end of that statement?

Universal Studios Home Entertainment has completely stopped producing UMD movies, according to executives who asked not to be identified by name. Said one high-ranking exec: "It's awful. Sales are near zilch. It's another Sony bomb -- like Blu-ray."

[strekship]

Anyone notice the end of that statement?

I wouldn't be surprised.

[Japlabot]

It was always doomed. It is backed only by Sony, it is overpriced and savvy customers would prefer to rip DVDs to a Memory Stick Duo. Having a movie on UMD is in essence like DRM, because you are tied onto the specific platform. With a DVD, you can play it on whatever device you want (DVD Player, PC) in addition to the PSP (though ripping/transcoding to MP4).

I don't see the Blu-Ray as being much different. It is backed only by Sony, would be more expensive than HD-DVD (Because no Blu-Ray competition from other vendors, higher manufacturing costs because machinery can not be converted from DVD), Sony will be the only movie studio to use Blu-Ray exclusively and nobody trusts Sony's DRM anymore, anyway.

[macrosslover]

Anyone notice the end of that statement?

yeah i noticed that, I can't believe a REAL source would say that, I think that's just somebody's added feelings. This is all quite funny to me, considering when the psp first came out people were like oh the games suck and people are just buying it to watch movies on it and now it's like the complete opposite lol.

I think the best way for Sony to salvage the PSP as a video player is just simply downloadable videos, itunes style when they release their Network solution later in the year. If I could get an episode of various TV shows, movies, ANIME, ANIME, and especially anime and other japanese cultural stuff that I normally wouldn't be able to get here in the states, I wouldn't mind paying a few dollars up to $10 depending on the content.

[giga Veteran]

Funny, Sony never seems to learn. I am glad this happened because this way they will attempt to lower prices for movies and focus more on games...i hope.

The weird thing is Sony scores third in brand trust surveyonly being beat by Dell and Bose.

Dell and Bose the most trustworthy brand. With Sony tailing behind them:laugh:h:

What a brainwashed mix of people..

[Smigit]

They should have made UMD's free with the DVD purchase of a movie. How much does the disk cost to press? I doubt many people seriously went and bought a DVD AND a Umd. MY thinking is if they give away free UMD's with the DVD purchase then consumers will have a stack of left over UMD's in their house which in turn may be an incintive for them to buy a PSP if they otherwise wouldnt have.

Of course sony wouldnt do such a thing and they planned to charge extra for the twin packs, but if they didnt add to the cost or only did by $1 or so then perhaps it would help PSP sales.

[Gaius Baltar]

i was always under the idea that umd's were lower quality than dvd's.

i mean there's no way that disc stores 9 gb :no:

[viciv]

PMP rules ^^