Connectivity Key to Post-Black Friday BD Player Sales - Not Just Price -Tipping Point - High-Def Digest Forums
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Old 11-23-2010, 12:37 PM
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Post Connectivity Key to Post-Black Friday BD Player Sales - Not Just Price -Tipping Point

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Connectivity Key to Post-Black Friday Blu-ray Player Sales


By : Erik Gruenwedel | Posted: 23 Nov 2010
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Features — not price — will be critical to selling Blu-ray Disc players following Black Friday and through the fourth quarter, said a retail analyst.

Stephen Baker, VP of industry analysis with The NPD Group, said increased availability of Blu-ray players offering wireless Internet connectivity, Netflix movies and transactional video-on-demand (VOD), among other features, have underscored sales in 2010.

About 2.4 million Blu-ray players were sold in the U.S. through September, up 96% from the same time last year, according to NPD. About 10% of U.S. homes now have a Blu-ray player.

Baker said Netflix’s launch of a domestic streaming-only service and the fact it is available on myriad CE devices, including Blu-ray players is invaluable to the high-definition format.

“I think Blu-ray players were stagnating until Netflix streaming popped up,” he said. “[Streaming] has been a huge benefit for the product category, and I don’t see any reason why that won’t continue to be a driver along with the aggressive bundling and the connection retailers are making between Blu-ray, a great picture and a big-screen TV.”

Indeed, NPD reported that 61% of U.S. homes have a flat-panel TV, with sales of Web-enabled TVs up 52% through September and representing 12% of HDTV unit sales. The average price of an IPTV in the U.S. is $1,556.

Baker said the fact Blu-ray players are prominent on the front of electronics retail circulars underscores their widespread consumer appeal.

“The fact that we’ve seen more Blu-ray players this year than in the past and at much lower prices really indicates we’re at the tipping point,
he said.

The analyst said the average consumer now recognizes what a Blu-ray player is and that it costs from $150 to $179.

That said, price — not features — remains paramount on Nov. 26 when retailers lure consumers the day after Thanksgiving with deep discounts and special offers, including BD players for less than $70 dollars.

“The key to Black Friday is being cheap and available,” Baker said. “People do not typically shop on Black Friday for component features. [Blu-ray] is a relativity well-known, relativity versatile product available to consumers at price points that are comfortable for them and that [retailers] can chop up for Black Friday promotions.”

NPD estimate is less than DEG's but the YTY growth is similar as is the projected 4Q 2010 surge
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Old 11-23-2010, 12:38 PM
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So yay for streaming? Kosty posted this article? Is this an episode of The Twilight Zone?
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Old 11-23-2010, 12:40 PM
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Originally Posted by Kosty View Post
NPD estimate is less than DEG's but the YTY growth is similar as is the projected 4Q 2010 surge
Probably because they are only counting SAL BD players while DEG counts PS3s also.
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Old 11-23-2010, 12:42 PM
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So yay for streaming? Kosty posted this article? Is this an episode of The Twilight Zone?
I've always said yeah to streaming.

I've also said Blu-ray players will be among the highest volume hardware, if not the highest category that will bring streaming into the home. But those players also will be used mostly for the primary purpose that they were bought for, and thats optical disc playback with streaming as complementary feature.

Its all complementary.

Personally, I don't recommend anyone buy a Blu-ray player without Netflix and Pandora streaming.
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Old 11-23-2010, 12:44 PM
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Probably because they are only counting SAL BD players while DEG counts PS3s also.
No. IIRC DEG had 3 million Blu-ray set top boxes sold as of September 30, 2010 this year. Again the issue is how to estimate Walmart sales.
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Old 11-23-2010, 12:48 PM
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This report is consistent with all the anecdotal comments that I have gotten on the rise of Blu-ray player sales in the last few weeks and my personal observations as well.

I think it bodes well not only for Blu-ray software sales but also Netflix streaming and I don't see the two growth trends in conflict.

I think its going to hurt cable providers the most actually.
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Old 11-23-2010, 12:49 PM
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Originally Posted by Kosty View Post
This report is consistent with all the anecdotal comments that I have gotten on the rise of Blu-ray player sales in the last few weeks and my personal observations as well.

I think it bodes well not only for Blu-ray software sales but also Netflix streaming and I don't see the two growth trends in conflict.

I think its going to hurt cable providers the most actually.
1 in 8 customers cut their satellite or cable subscriptions in 2009. What do you think it will be in 2010 Kosty?
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Old 11-23-2010, 01:01 PM
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Originally Posted by Kosty View Post
No. IIRC DEG had 3 million Blu-ray set top boxes sold as of September 30, 2010 this year. Again the issue is how to estimate Walmart sales.
I was referring to this:

Quote:
About 10% of U.S. homes now have a Blu-ray player.
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Old 11-23-2010, 01:06 PM
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So BD players are selling because of streaming apps. Interesting.
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Old 11-23-2010, 01:31 PM
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Originally Posted by GizmoDVD View Post
So BD players are selling because of streaming apps. Interesting.
Yes, BD players are selling. And those with added features are the most popular.

I would have used this Name:  icon_surprised.gif
Views: 45
Size:  1.0 KB, but it's not surprising really.
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