WSJ: Blu-ray Player Makers Embrace Online Movie Delivery

[mikemorel]

Losts of responses...

All your answers are right here in the article...

Ever since Blu-ray won the backing of Hollywood studios last year over the rival HD-DVD technology, electronics makers have predicted that the sharper and more lifelike Blu-ray format would eventually supplant the DVD.

But digital downloads and streaming are emerging faster than the industry expected; as recently as 2008, product makers predicted it would be years before there were mainstream alternatives to renting or buying high-def movies on Blu-ray discs.

Retailers and electronics manufacturers are scrambling to entice recession-scarred consumers to switch to the Blu-ray format now, before the trend toward digitization gains further steam. Analysts expect big-brand versions of these hybrid players will sell for about $150 apiece on the day after Thanksgiving.

Netflix said it expects to add more subscribers in the fourth quarter, partly because the growth of these hybrid players is expanding its base of potential customers.

[ack_bak]

Originally Posted by mikemorel

Losts of responses...

All your answers are right here in the article...

Actually, that does not explain why revenue from downloads/streaming is so small compared to optical disc and will remain so for many years.

There are already tens of millions of devices sold that can stream and download and the revenue numbers don't lie. Most people are simply sticking with optical discs. They might be renting more, but they are still sticking with optical discs.

[mikemorel]

Originally Posted by Kosty

By the way, even the headline is a "so what?" They are still making and selling a lot of hardware that has as its primary purpose the playing of physical media in the way of high definition Blu-ray Discs and standard definition DVDs.

So what? So I guess you are continuing to set the blu-ray bar REAL LOW.

Blu-ray is just now hitting 2000 titles on the High-Def Digest blu-ray releases page. It took 3.5 years to hit that "milestone".

I guess you are happy about that. You must think that is great.

I am not happy abou that. I want choose from of tens of thousands of catalog titles in high definition.

That will never, ever, ever happen on blu-ray.

[mikemorel]

Originally Posted by ack_bak

Actually, that does not explain why revenue from downloads/streaming is so small compared to optical disc and will remain so for many years.

It is a lot bigger than blu-ray disc.

[Mr. Cinema]

Originally Posted by mikemorel

So what? So I guess you are continuing to set the blu-ray bar REAL LOW.

Blu-ray is just now hitting 2000 titles on the High-Def Digest blu-ray releases page. It took 3.5 years to hit that "milestone".

I guess you are happy about that. You must think that is great.

I am not happy abou that. I want choose from of tens of thousands of catalog titles in high definition.

That will never, ever, ever happen on blu-ray.

HD DVD never offered up that many titles either, but you still bought...what was it, 6 players?

[Kosty]

Originally Posted by mikemorel

Losts of responses...

All your answers are right here in the article...

Actually most of that seems to be editorializing on the part of the authors to support the article's thesis. But if it suits your fancy go ahead and run with it if it makes you feel better.

BTW, the web page gives the original title of the article as "Blu-ray Backers Ally with Internet-Video Services" which I guess was not jazzy enough but seems more accurate.

[ack_bak]

Originally Posted by mikemorel

It is a lot bigger than blu-ray disc.

No it is not. From your own source (since you continue to miss the point even in the article you posted yourself)

Online video streaming and digital downloads should nearly triple to a $753 million North American market in 5 years, still a 5 percent sliver of DVD sales in 2008.

If downloads and streming is set to triple by 2014 to $750 million that puts them at $250 million for 2009. As of Q3 2009 Blu-Ray sales weer $568 million and rentals are $313 million. And this is before the biggest quarter of the year with 8 out of the top 10 grossing movies of 2009 coming to Blu-Ray. Blu-Ray has a chance to hit that $1.5 billion projection by the end of the year. Transformers 2 got them off to a good start.

So according to the numbers provided Blu-Ray rentals as of Q3 2009 should easily surpass all the revenue generated from downloads and streaming of both HD and SD. What do you think HD downloads and steaming will generate in 2009 Mike? My guess? About 8-10% of all downloads/streaming which would be about $20-25 million. Wow. I believe Transformers sales alone were around $40 the first week on Blu-Ray just in North America.

[Kosty]

Originally Posted by mikemorel

It is a lot bigger than blu-ray disc.

Only if you add in hotel room movie purchases and traditional cable and sat video on demand purchases through their existing video VOD networks.

If you are taking and comparing on Internet based non cable and sat and hospitality VOD purchases Blu-ray rental and sell through is already much larger.

But of courses, never let facts get in the way of a good story.....

[mikemorel]

Originally Posted by ack_bak

And this is before the biggest quarter of the year with 8 out of the top 10 grossing movies of 2009 coming to Blu-Ray.

So what happens in January?

[Forge]

Originally Posted by mikemorel

It is a lot bigger than blu-ray disc.

No its not. They don't divide the download piece into SD and HD sources. So since the entire download portion encompasses both SD and HD then you must combine the DVD and Blu ray portions to get a fair assesment of those numbers.

[ack_bak]

Originally Posted by mikemorel

So what happens in January?

More catalog and new releases will be released on Blu-Ray, CES will happen with more and more CE support for Blu-Ray, and we will see clearance and closeout sales on Blu-Ray players just like we saw last year and the year before. Lots of people with gift cards at Amazon and Best Buy will be buying Blu-Ray movies.

[Kosty]

...and year to year sales of Blu-ray movies in January 2010 will be dramatically higher than in January 2009 because of the huge increase in the number of households that have Blu-ray players, with or without streaming capabilities.

[comixguru]

I thought CEs were putting in streaming because they saw those manufacturers with it selling better. If you ask me, it's technical marketing at work.

Someone in marketing saw that Samsung player started to pick up steam in the sales charts when they threw streaming on their players. Next thing you know, everyone has it... because they can't let another company beat them out over a bullet point on a product sheet.

Consumer may buy stuff with a bazillion features... but in the end, as Kosty said, the vast majority use the basics.

[Ray Von]

Originally Posted by mikemorel

So what happens in January?

Depends what you mean.

I guess physical sales will fall back after the Q4 boom like they always do. Blu Ray sales and rentals will continue building on previous growth like they always do. Downloads (since they make pretty crappy Christmas pressies) will continue to show the same minimal growth and revenues they've done up to press. Like they always do

Ray Von

[towergrove]

Originally Posted by mikemorel

So what? So I guess you are continuing to set the blu-ray bar REAL LOW.

Blu-ray is just now hitting 2000 titles on the High-Def Digest blu-ray releases page. It took 3.5 years to hit that "milestone".

I guess you are happy about that. You must think that is great.

I am not happy abou that. I want choose from of tens of thousands of catalog titles in high definition.

That will never, ever, ever happen on blu-ray.

If not on Blu, then what format(one that I can purchase a product not rent)will this happen on? and when?