Blu-ray prices drop at retail High-def titles sell for average of $26 tag -VB - High-Def Digest Forums
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Old 03-13-2009, 07:06 PM
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Blu-ray prices drop at retail High-def titles sell for average of $26 tag -VB

I think that Blu-ray prices will drop even faster for catalog titles as many of the 1400-2500 titles available by the end of the year will be able to be purchased for $9.99 to $14.99.

I know that a concern at retail is the base price for day and date new release Blu-ray pricing as they don't want to set a consumer expectation price point there before they can see what a large amount of new Blu-ray hardware owners will do this fall.

I'm thinking that there is a lot more room for retailers to discount the older releases in the Blu-ray catalog.

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Blu-ray prices drop at retail

High-def titles sell for average of $26 tag

By Susanne Ault -- Video Business, 3/13/2009

MARCH 13 | Blu-ray Disc new release pricing is on the slide at retail, hovering at an average of $26 so far in 2009, according to Adams Media Research, as retailers try to find the right carrot to dangle for the thriftiest consumers in years.

Through the first three quarters of last year, retail prices on Blu-ray new releases ranged between $28 and $30. Studios’ wholesale charges to retailers, generally $21 to $24 on titles with list prices of $35 to $40, have mostly stayed the same since the format’s 2006 launch, sources say, so retailers are squeezing their margins to sell more volume.

Stores are battling the quickly deteriorating economy through lower Blu-ray pricing, so there is less of a perceived difference between high-definition discs and cheaper $15 to $20 new release standard-definition DVDs.

“I think the two major things working against Blu-ray are the recession and that the layman may not notice the difference going from disc to disc,” said one chain product manager. “It’s not like it’s tape to DVD.”

Adams Media Research predicts the Blu-ray price cuts at retail will continue through 2013. By that time, tags will hit $22.09, declining from $23.24 in 2011 and $24.46 in 2010.

Recently, Walt Disney Studios Home Entertainment’s March 3 release Beverly Hills Chihuahua, list priced at $34.99, debuted at Amazon.com and Best Buy at $27.99 and $25.99, respectively. MGM Home Entertainment’s Quantum of Solace, distributed by 20th Century Fox Home Entertainment, streets March 24 with a list price of $39.99 but is pre-selling for $25.99 at Amazon and $26.99 at Best Buy. Fox’s Slumdog Millionaire bows March 31 for $26.99 at both Amazon and Best Buy. Its list price is $39.99.

“Retail understands elasticity and this is their response to the consumer in this type of economic environment,” said Denis Cambruzzi, VP of Adams Media Research, a division of Screen Digest.

He also believes that Circuit City’s going-out-of-business sales have spurred deals from rival retailers.

“We’re likely to see more aggressive discounting this year,” said Cambruzzi, “as major retailers try to grab the Circuit City customer and increase their market share.

The NPD Group, specifically analyzing Blu-ray theatrical new releases, notes the average retail price falling from $26.30 in September to $25.83 in January.

“Consumers were saying a year ago that the price was high and that they were much more comfortable at $22 or $23,” said Russ Crupnick, NPD entertainment industry analyst. “Yes, the economy can exacerbate things. But the consumers do get that Blu-ray is a premium, but it’s the extent of that premium where they are resistant.”

Retailers understand why Blu-ray is being targeted for discounting. But they worry that the format, meant to deliver higher margins than standard DVD, is being devalued too fast in its short lifetime. Once prices are slashed, it’s doubtful consumers will accept them lifted back up to original levels.

“Personally, once prices do go down, I don’t think that people will get in the habit of paying $28 or $29 for a movie again,” said one store buyer. “Retailers are just trying to get consumers into stores. But what concerns me are retailers dropping prices where the margins aren’t there. This could get into loss leader territory.”

Another retailer believes certain Blu-ray film genres need an extra push off shelves. Dramas, family and kids titles, lacking the special effects that maximize Blu-ray’s effects, do not sell as well as action titles for the chain.

“You just want people to step into the pool and try it out,” said the retail source. “Many people aren’t aware of the Blu-ray experience. But once you start watching, you don’t want to go back.”



Code:
	                  2006	2007	2008	2009	2010	2011	2012	2013
New release feature	*30.70	*31.31	*28.43	*26.30	*24.46	*23.24	*22.54	*22.09
All other titles	*27.00	*32.67	*27.67	*24.21	*21.55	*19.39	*17.07	*15.53
Weighted average price	*28.37	*31.98	*28.07	*25.34	*23.18	*21.32	*19.69	*18.55
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Old 03-13-2009, 07:47 PM
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If anything I think the death of CC means less competition and an increase in prices and with California's tax getting bumped up I won't be purchasing anything from store shelves. Amazon.com all the way.

As for the price decrease...I'll believe it when I see it. $30 for Punisher: War Zone? $30 for Milk? C'mon. The only reason (imo) that the average is lower is because of the recent influx of cheap catalog titles thanks to Universal, Paramount and Warner who are getting into (or back to) the Blu-ray fold. D&Ds still remain priced the same, if not higher, then when they launched back in 2006 (first week pricing).
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Old 03-13-2009, 08:41 PM
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Quote:
Retailers understand why Blu-ray is being targeted for discounting. But they worry that the format, meant to deliver higher margins than standard DVD, is being devalued too fast in its short lifetime. Once prices are slashed, it’s doubtful consumers will accept them lifted back up to original levels.
That's the crux of the matter. People demanding that Blu-ray new release prices fall to $20 are not thinking about long-term viability of the format. Go too low too fast and so goes the incentive for even releasing on the format.
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Old 03-13-2009, 08:51 PM
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I'm glad to see prices falling I wish it went faster though
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Old 03-13-2009, 09:28 PM
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Quote:
in its short lifetime.
For retailers , Blu-ray just arrived as a format on mass just a few months ago last fall. Before the summer of 2008 it was a niche product.

From a major retail perspective Blu-ray just arrived as a mass market product last fall and is just now starting to get hardware available in quantities at mass market price points.

As a matter of fact, that is still a month or so from retail reality as it will start to happen this year with the newest generation of Blu-ray players.

With the economy on consumer's minds, there is no need to panic on Blu-ray pricing that might limit the future revenue stream at the retail level.
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Old 03-13-2009, 10:11 PM
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Yeah we are FINALLY seeing the price drops

It's taken so long because the implosion of hd-dvd meant that Blu-ray had no competition and could take their sweet time coming down in price. Players are coming down and hopefully they will be at DVD prices soon.
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Old 03-13-2009, 10:34 PM
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Quote:
Originally Posted by vinnie97 View Post
That's the crux of the matter. People demanding that Blu-ray new release prices fall to $20 are not thinking about long-term viability of the format. Go too low too fast and so goes the incentive for even releasing on the format.
Yes...perhaps it's imperative that BD consumers pay as close to suggested retail price as much as possible....you know, to aid in the long term viability of the product.
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Old 03-13-2009, 10:49 PM
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Amazon has Slumdog Millionaire on DVD for $16.99 and BD for $25.99. That is a $9.00 difference.

I don't see that closing the gap between D/D DVD and BD.
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Old 03-13-2009, 10:52 PM
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Quote:
Originally Posted by Kosty View Post
For retailers , Blu-ray just arrived as a format on mass just a few months ago last fall. Before the summer of 2008 it was a niche product.

From a major retail perspective Blu-ray just arrived as a mass market product last fall and is just now starting to get hardware available in quantities at mass market price points.

As a matter of fact, that is still a month or so from retail reality as it will start to happen this year with the newest generation of Blu-ray players.

With the economy on consumer's minds, there is no need to panic on Blu-ray pricing that might limit the future revenue stream at the retail level.
I'm not going to panic........I'm not going to panic....I'm not going to panic......
http://www.amazon.com/Wizard-Anniver...998391&sr=1-13
http://www.amazon.com/Gone-Anniversa...6998802&sr=1-1
http://www.amazon.com/Casablanca-Ult...6998866&sr=1-1
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Old 03-13-2009, 10:59 PM
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Quote:
Originally Posted by Taffy View Post
Yes...perhaps it's imperative that BD consumers pay as close to suggested retail price as much as possible....you know, to aid in the long term viability of the product.
Uhhhh . . not all us BD consumers subscribe to the philosophy that our buying standards should conform to what the studios would like. Shop wisely, stay patient, do not pay excessive prices, and blu-ray pricing will drop like a rock!
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