Blu-ray outsells HD-DVD in U.S. for first 9 months

By Sue Zeidler

LOS ANGELES (Reuters) - 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 Home Media Magazine, said on Tuesday total U.S. sales of Blu-ray discs, using a Sony Corp (6758.T)-backed technology, totaled 2.6 million units from January 1 through Sept 30, versus 1.4 million HD-DVD discs sold.

HD-DVD was developed by Toshiba Corp (6502.T). It is backed by Microsoft Corp (MSFT.O) as well as film studios like Time Warner Inc's TWX.N Warner Bros.

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

Gerry Kaufhold, analyst with In-Stat research firm, believes newly released HD-DVD titles with new advanced Web-enabled features, such as Paramount's "Transformers," will help the HD-DVD camp in the fourth quarter.

Paramount Home Video said that "Transformers" had the biggest debut of any high-definition titles, selling over 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," he said, but still expects Blu-ray will