Welcome Guest. | Log In| Register | Membership Benefits

  • Email this page E-mail
  • |  Print Print
  • |   Bookmark and Share
  • icon

Dropping Prices Drive Up Blu-ray Player Sales


The average selling price for players fell nearly 34% in the quarter to $261 from $393 a year ago, one survey found.



Sales of Blu-ray disc players in the United States soared by 72% in the first quarter, as falling prices and the spreading use of high-definition TVs countered any negative effects of the economic recession, a market research firm said Thursday.

Sales grew to more than 400,000 units in the quarter, while the amount of money retailers reaped rose 14% from the same period a year ago to $107.2 million, the NPD Group said in its latest "Blu-ray Report."

Lower prices have been a big driver for growth. The average selling price for players fell nearly 34% in the quarter, to $261 from $393 a year ago, the researcher said. However, prices may have to fall even further to lure more new customers. NPD found that consumers likely to buy in the next six months expect to pay $214 on average.

Another factor behind Blu-ray's growing popularity is the increasing number of high-definition TVs in homes. With the sets, people are able to see the full picture quality advantage of Blu-ray over standard DVDs.

"Even as options expand for accessing movies digitally, Blu-ray is carrying forward the widespread appeal of DVD into the high-definition marketplace," NPD analyst Ross Rubin said in a statement released Wednesday.

Helping in getting potential buyers interested in taking a look at Blu-ray is the growing awareness of the technology. Overall consumer awareness in the United States has reached 90% in the last six months. When only those who are "very familiar" with the technology are considered, then the percentage drops to 42%.

While vendor marketing and promotions have increased, word of mouth among friends, family, and co-workers remains the best promoter of the technology.

"Blu-ray's superiority used to be difficult for many consumers to grasp, but when friends rave about it, or demonstrate Blu-ray in their homes, they are selling the benefits in a way that is far more effective than simply viewing an advertisement or seeing it demonstrated at a retail store," NPD analyst Russ Crupnick said.

Among the recent promotions from Blu-ray vendors came from Warner Bros. The Hollywood studio is offering to ship the Blu-ray version of any film sold by the company in the now-defunct HD DVD format. Warner Bros. accounts for roughly 20% of DVD sales in the United States.

Data for the report was gathered from an online survey of 6,994 adults from Feb. 25 through March 6.


Learn about all the latest Enterprise 2.0 technologies at TechWeb's Enterprise 2.0 Conference, Boston, June 22-25. Join us (registration required).



Subscribe to RSS


Advertisement






Get InformationWeek in Print

Apply for a free 52-week subscription to InformationWeek (a $199 value)



NOTE: Offer valid for U.S., U.S. possessions, & Canada only.