Toshiba Parts With Magnolia Home Theater on Cinema Series, Targets Regional, Independent Dealers

ATLANTA -- Toshiba will limit distribution of its Cinema Series LED edge-lit and 3D LCD TVs to regional chains and independent dealers this year after parting ways with Best Buy’s Magnolia Home Theater, National Training Manager Michael Danning told us at CEDIA.

While Magnolia Home Theater carried Cinema Series TVs in 2009, the companies disagreed this year over the positioning of the Toshiba brand, Danning said. Toshiba saw itself as a tier-one supplier, but Best Buy didn’t share that view, Danning said. Toshiba’s Internet-capable sets this year will be carrying the Vudu video download service, but Best Buy is pushing its own CinemaNow, industry officials said. Toshiba TVs aren’t offering CinemaNow, Danning said. Best Buy officials weren’t available to comment. Toshiba Cinema series sets won’t be sold through other national chains this fall, Danning said.

The Cinema Series WX800 46- ($2,599) and 55-inch ($3,299) 3D-capable 1080p LCD TVs feature 240 Hz panels plus Toshiba’s Net TV with Yahoo Widgets including Blockbuster-on-Demand, CBS, eBay, Facebook, Pandora, Twitter, Vudu and YouTube. The LED edge-lit TVs feature 802.11n wireless capability and two sets of four 3D emitters on the bottom left and right of the panel. The lower-priced WX700 46- ($2,300) and 55-inch ($3,000) LCD TVs, drop 3D capability but continue with LEDs and 240 Hz panels.

To promote 3D, Toshiba will bundle the WX800 sets with its BDX3000 3D Blu-ray player ($300) and two pairs of RealD active-shutter glasses. It also may be in a bundle with just the glasses, company officials said. There are no plans to package the sets with a 3D movie, Danning said, calling that a trend that may die down as more 3D Blu-ray films become available. Toshiba’s active-shutter glasses are 25 percent faster than competing brands, National Training Manager Bruce Walker said.

Toshiba’s 3D plans for 2011 may dovetail with the re-emergence of its Cell processor technology. The company decided this year not to offer Cell-based sets, mainly because of price, though it showed models at CES in January. But parts of the Cell technology could be redeployed in 3D TVs, including to convert 2D content to 3D, company officials said.

The BDX3000 3D Blu-ray player features 1080p/24fps output, DVD up-conversion, WiFi, 7.1 channel analog outputs, a USB port, SD/SDHC slot and NetTV. Having been slow to embrace Blu-ray after dropping its HD DVD format, Toshiba has had growing sales this year of its three Blu-ray player models, Danning said. “We were slow to adopt Blu-ray, and this is the first time we have had a full line of products and we're doing quite well,” he said.

Toshiba product trainers spent part of a session with custom installers at CEDIA promoting Vudu, noting that the thrust of the service hasn’t changed much since it was acquired by Wal-Mart earlier this year. Vudu offers some movies at the same time they arrive in theaters. They include Robin Hood, listed as available for rent at $5.99 for the service’s HDX format and at $4.99 and $3.99 for HD and SD resolution. An SD version of the movie also was available for purchase at $18.99. Robin Hood opened in theaters on Sept. 21.

As Toshiba shifts its emphasis to 3D, Net TV and Blu-ray, there will be less stress on standard DVD players and combo products, company officials said. But the company has sold “a lot of DVD product as our competitors get out” of the business, Danning said. “We're selling a ton and our sales are actually increasing.” Toshiba has no plans to introduce new versions of its XD-E600 up-converting DVD player that was introduced two years ago (CED Aug 18/08 p2). The deck used Toshiba’s extended detail enhancement (XDE) technology and followed the company’s decision to drop HD DVD.

Meanwhile, Scott Ramirez, vice president of marketing for CE, is said to have decided to move to California in connection with Toshiba’s plans to combine its information systems and consumer products businesses in Irvine, Calif., sources said. Jodi Sally, vice president of digital A/V products, and Maria Repole, vice president of communications, are said to be leaving the company, sources said. A decision is expected by Oct. 1 on whether its five national training managers also will be moved to Irvine. The training managers previously reported to Toshiba America Consumer Products (TACP) in Wayne, N.J. Toshiba America Information Systems is in Irvine.