A 38% jump in Blu-ray household penetration push Blu-ray compatible devices into 40 million U.S. homes by the end of the year.

Helping spark Blu-ray sales were the continued growth of HDTV sales, another 27 million sold in 2011, expanding penetration to more than 74.5 million U.S. households.

Also contributing to Blu-ray sales, the number of 3D Blu-ray releases tripled to 45 (65 overall in market now), with unit sales increasing more than six times in the same period.

The five top-selling titles of 2011 sold more than 2 million copies each. The top-selling Blu-ray titles in 2011, according to Nielsen VideoScan First Alert:

1. Harry Potter – Deathly Hallows, Part 1
2. Harry Potter – Deathly Hallows, Part 2 (available in 3D)
3. Tangled (available in 3D)
4. Cars 2 (available in 3D)
5. Transformers – Dark of Moon
6. Bridesmaids
7. Rio
8. The Help
9. Lion King (available in 3D)
10. Hangover Part 2

Total consumer spending on home filmed entertainment in 2011 was down more than 2% to $18 billion, including digital and electronic downloads and video-on-demand services, but it rose nearly one percent in the second half of the year and 5% in the third quarter alone — the first quarterly increase since 2008.

– By Scott Hettrick

Among examples of Panasonic’s new 3D products:

• Panasonic and NBC Sports Group will partner to make the London 2012 Olympic Games available in 3D to all cable, satellite and telco systems, the first time that the Olympic Games will be distributed in the U.S. in 3D. More than 200 hours of 3D broadcasts will be produced by Olympic Broadcasting Services and shown on next-day delay, including the Opening and Closing Ceremonies, gymnastics, diving and swimming.
• Sixteen of the manufacturer’s 17 plasma TVs for 2012 feature the 3D technology.
• Five of the 14 LED/LCD HDTVs provide 3D capability.
• Four of the six Blu-ray Disc players in the 2012 line are Full HD 3D.
• Panasonic Hollywood Laboratory (PHL) authors and masters many 3D Blu-ray Discs.
• Panasonic’s AG-3DA1, the industry’s first fully integrated 3D camcorder recording to SD Memory cards, was used aboard the historic, final mission of the NASA Space Shuttle voyage and is routinely used in sports and other 3D television production.
• A full line of 3D capable consumers and LUMIX digital cameras are available, and their images can then be easily shown on a Smart VIERA 3D HDTV.
• Panasonic’s first Full HD 3D home theater projector, the PT-AE7000U.
• Panasonic formally establishes its 3D Innovation Center this week, located in Hollywood at PHL, to engage with the entertainment and broadcast communities to enhance 3D production technologies and work flow and to foster collaboration with industry partners to develop new applications for 3D technologies.

“Panasonic is in the unique position of being involved in all areas of 3D, from production to what you see in your living room. We are 100% committed to the technology and confident in the knowledge that 3D TV is actually of to a faster start than the implementation of HDTV. For example there are multiple full time 3D channels available on cable and satellite, not to mention the large and varied content on 3D Blu-ray Discs. Also, the continuing popularity and number of theatrical releases can only bode well for the in-home acceptance,” said Eisuke Tsuyzaki, Panasonic Corporation of North America Chief Technology Officer. “

Regarding Panasonic’s commitment to bring the Olympics to home viewers in 3D, Panasonic North America Chairman & CEO Joseph M. Taylor said, “Full HD 3D is ideal for capturing the true spectacle of Olympic competition and the pageantry of Olympic ceremonies, and we are excited to… deliver to home viewers an unprecedented 3D Olympic experience that will make them feel as though they are right there with the world’s finest athletes as they compete.”

Among the International CES Innovations 2012 Design and Engineering Awards collected by Panasonic this week:

• Video Displays category honoree: TC-P55VT50, 55-inch class Full HD 3D Plasma HDTV, which converts 2D-to-3D
• Video Components category Best of Innovation winner and Honoree in the Eco-Design and Sustainable Technologies category: Panasonic DMP-BDT320 3D Blu-ray Disc player, half the size of previous models.

Twentieth Century Fox Home Entertainment‘s “Rio” was named Blu-ray 3D Title of the Year in the DEG Creative Excellence Awards for 2011.
Other winners included Theatrical Title of the Year “Harry Potter and the Deathly Hallows: Part 2″ from Warner Bros. Home Entertainment Group; and a tie for Classic Title of the Year: “Ben Hur: Ultimate Collector’s Edition” from Warner, and “Star Wars: The Complete Saga” from Fox.
Warner’s AC/DC: Let There Be Rock was named Music Title of the Year.
The judging panel for Blu-ray titles, nominated by the motion picture studio and music company members of the DEG, consisted of reviewers and industry reporters from trade, entertainment and daily consumer news organizations. In addition to overall sound and picture quality, all titles were considered for those features that best demonstrate the value-added nature of the format.

Other awards announced during the DEG”s 15th annual reception:

Pioneer’s Elite Music Tap System (X-SMC4-BK) won the DEG Emiel N. Petrone Digital Innovation Award for Best Digital Media Product.
Sony Electronics‘ VPL-VW1000ES Projector was the recipient of the DEG Emiel N. Petrone Digital Innovation Award for Most Innovative Home Enterainment Product.

– By Scott Hettrick

The research, Global Blu-ray and DVD Players and Recorders (#IN1104965ME) contains regional breakouts of DVD and Blu-ray player and recorder shipments as well as revenues from 2008 to 2010 and forecasts from 2011 through 2015. Regions include North America, Europe, Japan, and ROW for all players and DVD recorders; and Japan and “Others” for the Blu-ray recorder market.

Details include:
* Actuals and forecasts of 3D, Wi-Fi, and web-enabled Blu-ray players and recorders, 2008-2015
* Bill of Materials (BoM) for Blu-ray players
* History of Blu-ray and DVD technologies
* Historical shipments, revenues by device, and region for Funai/Magnavox, LG, Panasonic, Samsung, and Sony.

– By Scott Hetrick

Both chapters of “Deathly Hallows” were to have been released theatrically in 3D, but just weeks before “Chapter 1″ was to premiere in late 2010, Warner Bros. scrubbed the 3D showings of the movie due to dissatisfaction with the quality of the 3D conversion. Warner had recently taken a public beating for its hurried and unsatisfying 3D conversion of “Clash of the Titans.” “Chapter 2″ was released as planned in 3D since there were many more months to get it right before it premiered last summer.
Sources say the studio has spent millions of dollars re-doing the 3D for “Chapter 1″ even though it will only be on Blu-ray 3D for now. “Chapter 1″ has much less action and many more scenes of the Potter trio standing and talking. But James Cameron said last week that such dramatic scenes often benefit more from the added impact of 3D than action sequences.

Warner’s traditional 2D Blu-ray release of “Chapter 2″ will be a combo pack with a retail price of $35.99 that includes the Blu-ray version, a standard DVD version, and an UltraViolet digital copy. It will not be available at rental kiosks or by subscription until Dec. 9.

Special features on the “Chapter 2″ Blu-ray include:

•    Maximum Movie Mode pop-up picture-in-picture during the movie hosted by Matthew Long (Neville Longbottom) and other cast members (80 minutes).
•    A Conversation with JK Rowling and Daniel Radcliffe on bringing  Potter to life, the last decade of films and how their lives have changed by the fame that they’ve both experienced.
•    The Goblins of Gringotts, hosted by Warwick Davis.
•    The Women of Harry Potter.
•    WB Studio Tour London – The Making of Harry Potter
•    Deleted Scenes

– by Scott Hettrick

Celebrating the 25th anniversary of Pixar Animation Studios, the high octane in-home release invites families and fans of all ages to come along on a journey around the world with the #1 animated film of the year and introduces an exclusive new animated short “Air Mater,” featuring the fan favorite character spinning his tales in an exciting adventure high above Radiator Springs. The animated release also includes fascinating commentary from award-winning director John Lasseter and “Hawaiian Vacation,” the delightful animated short that accompanied the film in theatres.

The immersive “Cars 2” bonus features include an one-of-a-kind interactive “World Tour” map that takes viewers through nine different locations, including those featured in the film and more. A global thrill-ride, it allows viewers to go behind-the-scenes with the Pixar artists and filmmakers as they circle the globe finding inspiration for the most international of all Pixar films to date. “Cars 2” is also the first Pixar film to be released in spectacular Blu-ray 3D.

Academy Award®-winning filmmaker John Lasseter, chief creative officer for Walt Disney and Pixar Animation Studios, returns to the driver’s seat as director. “Cars 2” is produced by visual effects industry veteran Denise Ream (associate producer, “Up”; visual effects executive producer, “Star Wars: Episode III — Revenge of the Sith”). Oscar-winning composer Michael Giacchino (“The Incredibles,” “Up”) provides the electrifying score with a surf-rock-meets-spy-thriller flavor and a variety of global accents, evoking a sense of thrills, mystery and emotion. Brad Paisley, Robbie Williams, Weezer, French singer Bénabar and Japanese girl band Perfume lend their diverse musical talents to the film’s soundtrack.

The film features an all-star vocal cast including Owen Wilson who reprises his role as hotshot racecar Lightning McQueen. Larry the Cable Guy provides the voice of Mater (proprietor of Tow Mater Towing and Salvage), Lightning McQueen’s best friend and the heart and soul of Radiator Springs. Bonnie Hunt is back as Sally, the baby-blue Porsche 911 Carrera whose motor races for Lightning. Acclaimed actor Michael Caine makes his Pixar debut as Finn McMissile, a top British spy who mistakes Mater for an undercover American agent with a genius disguise. Emily Mortimer brings charm, cleverness and cachet as Holley Shiftwell, a rookie field spy who knows every trick in the manual. Versatile actor John Turturro gives a free-wheeling performance as Francesco Bernoulli, the world-renowned Italian racing champ who is Lightning’s chief rival. Tony Shalhoub, Joe Mantegna, Peter Jacobson, Jason Isaacs, Eddie Izzard, Paul Dooley, Cheech Marin, John Ratzenberger, Franco Nero and Vanessa Redgrave also lend their vocal talents. Real-life Formula 1 racing champ Lewis Hamilton and NASCAR racer Jeff Gordon add a touch of authenticity with their cameos in the film.

Film Synopsis:
Star racecar Lightning McQueen and the incomparable tow truck Mater take their friendship to exciting new places in “Cars 2” when they head overseas to compete in the first-ever World Grand Prix to determine the world’s fastest car. But the road to the championship is filled with plenty of potholes, detours and hilarious surprises when Mater gets caught up in an intriguing adventure of his own: international espionage. Mater finds himself torn between assisting Lightning McQueen in the high-profile race and towing the line in a top-secret mission orchestrated by master British super spy Finn McMissile and the stunning rookie field spy Holley Shiftwell. Mater’s action-packed journey leads him on an explosive chase through the streets of Japan and Europe, trailed by his friends and watched by the whole world. The fast-paced fun includes a colorful new all-car cast, complete with menacing villains and international racing competitors.

– By Scott Hettrick

The studio expects “Rio” to be among its top sellers of the year.
In addition to a delightful collection of bonus features, the title also provides consumers with exclusive access to unlock never-before-played bonus levels of the smash video game hit Angry Birds Rio, and includes a “RIO Coloring with Blu” app that lets users color their favorite characters and backgrounds on their iPhone, iPod Touch, iPad or Android.  Their finished art can then be printed out using AirPrint or shared on Facebook and other social networking sites.

Fox backed the title with a strong marketing push that, in addition to ads on TV and other media, included 75 beach and mall takeovers across the U.S., promotional tie-ins with Capri Sun, Chiquita, Little Debbie, Applebees and others that contributed to more than 1 billion consumer impressions, and the formal kickoff concert with Sergio Mendes in Glendale, Ca. last week at the Americana at Brand that attracted more than 7,000 people.  Mendes also played with the The Roots on Late Night with Jimmy Fallon on “Rio’s” street date.

– By Scott Hettrick

“In early January, Disney announced an aggressive plan to bring a wide variety of 3D content to consumers’ in-home experiences,” noted Lori MacPherson, Executive Vice President, Global Product Management, The Walt Disney Studios.
The studio previously announced “Tim Burton’s The Nightmare Before Christmas” for 3D release on August 30, “The Lion King: Diamond Edition” and “Beauty and the Beast,” both in 3D on October 4, and “Pirates Of The Caribbean: On Stranger Tides” in 3D on Oct. 18.
Already this year Disney has released Blu-ray 3D versions of “Gnomeo & Juliet” (May 24), ” TRON: Legacy” (April 5), and “Tangled” (March 29).
Last year the studio introduced three  Blu-ray 3D titles: “Tim Burton’s Alice In Wonderland” (December 7), “Step Up 3D” (December 21), and “Disney’s A Christmas Carol” (November 16).

– By Scott Hettrick

Among the highlights of the second quarter numbers:

• In the second quarter, the number of Blu-ray homes grew 16% over 2010 (inclusive of BD set-tops, PS3s and HTiBs,) bringing the total household penetration of all Blu-ray compatible devices to more than 31.6 million U.S. homes. This makes Blu-ray one of the fastest-growing new technologies in the home entertainment industry.

• Blu-ray sales rose 13.1% in the first half of the year to 4.938 million.

• 4.7 million HDTVs were sold to U.S. consumers in second quarter 2011. While flat over the first half last year, HDTV penetration to date is now at more than 66.8 million U.S. households.

Blu-ray sales are expected to be even stronger in the third and fourth quarters with releases of major blockbusters such as “Transformers: Dark of the Moon,” “Harry Potter and the Deathly Hallows: Part 2,” “The Hangover Part II,” “Pirates of the Caribbean: On Stranger Tides,” and “Fast Five.”

– By Scott Hettrick

It was Walt Disney Studios Home Entertainment that announced a two-week domestic run of “The Lion King: Diamond Edition” in more theaters than any of its releases since its debut in 1994, and this time for the first time in Disney Digital 3D.

The Blu-ray release will be the first HiDef version of the movie that has not been available on any format since 2004. Even so, “The Lion King” is the best-selling home entertainment release of all time,” said Bob Chapek, president of distribution, The Walt Disney Studios.
The home Diamond Edition ($49.99 for the 4-disc Blu-ray 3D) will include interactive features and bonus content, including a new set of hilarious animated bloopers.
An eight-disc trilogy will also be available for $100, which includes the Blu-ray 3D “Lion King” and the first Blu-ray (2D) versions of the two DVD premiere sequels, “The Lion King 1 1/2″ and “The Lion King II: Simba’s Pride.”

Interestingly, Disney has yet to announce a specific release date for the 3D version of “Beauty and the Beast” in theaters or on Blu-ray other than to say it would be released on Blu-ray sometime in 2011. The Diamond Edition of the movie was released on Blu-ray only last October. That was originally to have been in 3D and to have followed the 3D theatrical release of “Beauty and the Beast,” which was converted to 3D prior to “The Lion King” two years ago. But Disney’s plans changed after the tepid reception for the theatrical release of the double-feature converted 3D release of “Toy Story” and “Toy Story 2″ in 2009.

Having released recent 3D theatrical releases “Tron Legacy,” “Tangled,” “Alice in Wonderland,” “Step Up 3D,” and “Disney’s A Christmas Carol” on Blu-ray 3D, Disney announced in January that the studio would also release “Bolt,” G-Force,” and earlier 3D movies “Chicken Little,” Tim Burton’s The Nightmare Before Christmas,” and “Meet the Robinsons” on Blu-ray 3D this year, among others.
Each release was said to include thematically linked 3D menus, and 3D previews of coming-attractions.

– By Scott Hettrick