Q: Sales figures for Blu-Ray movie discs are significantly higher this year than for HD-DVD. How do you counter the argument that the tide has turned in Blu-Ray's favor?
A: We didn't have many hot releases in the first quarter, or many releases at all. They had some real biggies, like "Casino Royale." The fourth quarter will be telling. Our releases will be stronger, and we're looking for a big attach rate [that's disc sales per player] when people jump for an inexpensive HD-DVD machine to show off their new high-def TV set.
To that end, we're doing a lot to educate the retailers and the consumers. You know, there are now HD sets in probably 25 million households. But more than half of those owners still believe, incorrectly, that anything they plug in_including basic cable and standard-definition DVD_is going to be in "high definition" on those sets. We've got to show them what they're missing.