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Blu-Ray Blues: High Prices Blamed for Slow Adoption

Posted by Tom Spring | Monday, June 02, 2008 8:45 AM PT

Sluggish Blu-Ray Disc Sales - Why

Despite a victory over HD DVD in the format war, analysts don't expect mass consumer adoption of the Blu-ray video format anytime soon. Even though Blu-ray's got a sharper picture, interactive special features and can even access some online special features known as BD Live, customers are not lining up to grab the latest in home video technology.

So what's the hold up?

According to a ABI Research analysts the biggest obstacle seems to be cost. Right now, the most inexpensive Blu-ray players are going for $300. Wal-Mart is selling a Magnavox Blu-ray player for $298. However, a standard DVD player is only $50-$100. A Blu-ray disc can cost $10 over the typical DVD price.

Also consider want-to-be Blu-ray player owners will have to invest in a HDTV (if they haven't already) to take advantage of the spectacular picture quality Blu-ray supports. It alls adds up making it easy to see why the general public is a little stand-offish during an economic slump.

Analysts with Adams Media Research predict the three year old technology will be in 14.4 million U.S. homes by the end of 2008. This is not exactly a huge customer base, but the Blu-ray camp argues that standard DVD players were only in 9.4 million homes at the end of their three year introduction so Blu-ray seems to be doing better than its predecessor.

But the lack of public enthusiasm has the suits worried. In 2007, the home video market fell 3 percent and is expected to drop another 2 points by the end of this year. To fight back the downward spiral, DVD producers are eager to expand their Blu-ray catalogue of movies and you can expect your local retailers to wage a Blu-ray information campaign to convince you to shell out the bucks for a high-def experience.

Of course, Blu-ray also has to compete with on-demand and online video, as well as expanded cable and satellite services. There's also little incentive to replace your old DVDs with Blu-ray discs since Blu-ray players are backwards compatible. It's a tough world out there for Blu-ray and while experts are certain the format will dominate it's one big guessing game when that will happen.

CREDIT - PC World correspondent Ian Paul

Comments (2)

Player prices continue to get the blame for slow adoption. I never hear any writers complain about format compatibility when purchasing Blu-ray movies. If you don't have kids, you probably haven't considered how expensive it will be to step up to Blu-ray. Unless you own a new, expensive laptop with a Blu-ray drive, you won't be taking any Blu-ray movies with you on a road trip. Your kids can't watch that latest Disney movie in Blu-ray in their bedroom unless you upgrade their DVD player too. Many of the people I have talked with feel the same way. Until HD lost in the format war, they were offering some movies in dual-format versions playable on standard DVD players too. Why would I pay $5-10 extra for a movie that plays on only one player in my house, no matter how good it looks? When movie studios start offering Blu-ray and standard DVDs in one box at a reasonable price, I will get a Blu-ray player.

thornhill
June 02, 2008
4:43 PM PT

I'm so glad to see this. Blu-ray is too expensive. And the regular consumer isn't buying it. It seems to me that for the last few years the US consumers that count are those who can afford the hight end tech stuff, not the regular consumer that is in the majority. Welll folk, the majority can't afford most of the new tech, and it is way too expensive. We don't need to change our DVDs to Blu-ray, we're happy with the DVD and can't afford the change. The same will go for the new Digital TVs, I have yet to see a Digital TV HD or otherwise that I'm able to afford. I've looked at a few of the smaller sets, when I can find one, and sorry to say, they are all crap! I've gone into a few stores and all they want to sell me are the huge wall size sets. Seriously, I don't need one, my walls aren't supposed to be dedicated to a TV. I've got an old TV, a good DVD player, and a nice video library, it will have to do.

Tardarian
June 02, 2008
8:36 PM PT