1. Blu-Ray Disc Association Business Alliance – Group 3

2. A G E N D A  Blu-Ray Disc Association Background  Benefits of Blu-Ray technology  Membership Levels and Structure  Sample Companies in alliance:

3. Blu-Ray Disc Association Background optical storage medium  New generation of an optical storage medium 9 initial members  Founded by 9 initial members competed with the HD-DVD  Blu-Ray competed with the HD-DVD from Toshiba officially changed to the “Blu-ray Disc Association (BDA)  On October 4 2004, the “Blu-ray Disc Founders” was officially changed to the “Blu-ray Disc Association (BDA) ”

4. Benefits of Blu-Ray technology Consumer Electronics Especially for HDTV marketEspecially for HDTV market Other electronic gadgets to achieve compatibilityOther electronic gadgets to achieve compatibility PC and Peripheral devices The need in Higher Storage CapabilityThe need in Higher Storage Capability Stimulate the sales of Blu-Ray equipped PCsStimulate the sales of Blu-Ray equipped PCs Disc Greater Demand of Disc MediaGreater Demand of Disc Media Media makers enjoy benefits by producing Blu-Ray Disc MediaMedia makers enjoy benefits by producing Blu-Ray Disc Media Content Providers Save cost while can maximize convenience to consumerSave cost while can maximize convenience to consumer

5. Membership Levels and Structure

8. Sample Companies in alliance High-Definition DVD War Blu-Ray Newly developed TechnologyNewly developed Technology More expensiveMore expensive Huge alliance associationHuge alliance associationHD-DVD Improved from DVD FormatImproved from DVD Format Entered market with lower priceEntered market with lower price Fewer alliance partnersFewer alliance partners

9. Sample Companies in alliance A Foe becoming a friend Toshiba pulled back HD-DVD project Toshiba pulled back HD-DVD project Latest member of Blu-Ray Disc Association Latest member of Blu-Ray Disc Association Warner Bros. Studios switched to support Blu-Ray side Wal-Mart, Bestbuy declared to only support Blu-Ray discs Blockbuster, Netflix also joined Blu-Ray Lost to new competitor in China: CBHD Reasons

10. Sample Companies in alliance A Foe becoming a friend Problems: Warner Bros. Studios Warner Bros. Studios Wal-Mart &Bestbuy declared to only support Blu-Ray Wal-Mart &Bestbuy declared to only support Blu-Ray Blockbuster, Netflix also joined Blu-Ray Blockbuster, Netflix also joined Blu-Ray Lost of market share to new competitor in China: CBHD Lost of market share to new competitor in China: CBHDProblems: Warner Bros. Studios Warner Bros. Studios Wal-Mart &Bestbuy declared to only support Blu-Ray Wal-Mart &Bestbuy declared to only support Blu-Ray Blockbuster, Netflix also joined Blu-Ray Blockbuster, Netflix also joined Blu-Ray Lost of market share to new competitor in China: CBHD Lost of market share to new competitor in China: CBHD Advantages for the future: Toshiba share prices increased immediately Toshiba share prices increased immediately DVD player market better since knowing the next generation format DVD player market better since knowing the next generation format Blu-Ray is in the transition to Mass Market Blu-Ray is in the transition to Mass Market Advantages for the future: Toshiba share prices increased immediately Toshiba share prices increased immediately DVD player market better since knowing the next generation format DVD player market better since knowing the next generation format Blu-Ray is in the transition to Mass Market Blu-Ray is in the transition to Mass Market

11. Sample Companies in alliance  One of the 9 Founders  Creating special ranges of Blu-ray Disc products :  PLAYSTATION 3  VAIOb  Blu-ray Disc Player

12. Sample Companies in alliance Sony Pictures Entertainment Provide consumers with significant amount of contents of high quality Provide consumers with significant amount of contents of high quality Sony Computer Entertainment Play Station 3: Truly High-Definition Entertainment SystemPlay Station 3: Truly High-Definition Entertainment System VAIO: the addition of Blu-Ray equipped in PCsVAIO: the addition of Blu-Ray equipped in PCs Sony Music Entertainment Content makers create titles on Blu-Ray discsContent makers create titles on Blu-Ray discs

13. Sample Companies in alliance  HP joined Blu-Ray Disc Association on November 2004.  Purposes:  to meet the extending needs of more capacity  to complete the format technology and develop the drives  to ensure that consumers aren't forced to choose between competing HD formats for DVDs

14. Sample Companies in alliance  HP interacted actively to push the technological development of BD forward  For example: Mandatory Managed Copy  HP announced to back HD-DVD on December 2005

15. Questions?