Best Buy, Amazon maintain large Blu-ray market share - High-Def Digest Forums
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Old 05-08-2009, 06:45 PM
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Arrow Best Buy, Amazon maintain large Blu-ray market share

PHYSICAL: As format grows, Wal-Mart might dominate

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By Susanne Ault -- Video Business, 5/8/2009
MAY 8 | PHYSICAL: Almost three years after the introduction of Blu-ray Disc, retailers Best Buy and Amazon continue to account for a much larger share of sales of the new format than they do for standard DVD. But Wal-Mart is poised to expand its market share quickly as Blu-ray’s consumer base broadens, according to analysts.

Best Buy is the dominant retailer of Blu-ray by a large margin, claiming a market share of 40% to 50%—even larger than the share Wal-Mart holds in standard DVD, according to research sources. Wal-Mart is the runner-up with 20% to 30% market share. Amazon.com clocks in at 15% to 20%, and Target rounds out the leading Blu-ray retailers with about a 10% share.

The retail rankings are turned around when analyzing the overall DVD market, with Wal-Mart maintaining its long-time dominance with a 40% share. Second place is a virtual tie, note sources, with Target and Best Buy hitting 12% and 11%, respectively. Amazon trails at around 6% to 7%.

Best Buy has topped the retail field in Blu-ray since around the time the format launched. Research analysts believe that Best Buy’s ongoing Blu-ray strength makes sense considering its core electronics customer base matches perfectly with early adopters. Best Buy has merchandised to that fact, placing Blu-ray titles in heavily trafficked areas.

The chain also heavily emphasizes Blu-ray titles in advertising. In its April 28 newspaper insert, for instance, Best Buy featured the Blu-ray versions of the week’s major releases—Paramount Home Entertainment’s Hotel for Dogs and The Uninvited and 20th Century Fox Home Entertainment’s Bride Wars—with pictures much larger than those for the titles’ standard DVD versions. A week earlier, Universal Studios Home Entertainment’s April 21 release Frost/Nixon was shown only in Blu-ray form, with small writing underneath the image stating that the title is also available on standard DVD.

“Best Buy supports the format more aggressively than Wal-Mart and Target,” said one retail analyst. “Best Buy has been aggressive with its first-week pricing for new release titles and offering catalog promotions. And its placement of Blu-ray titles is typically at the front of the store, compared with the back of the store at some Target and Wal-Mart locations.”

Similarly, Amazon has lavished Blu-ray with a lot of merchandising and promotion attention, helping the online retailer grab a much larger share in the format than it has on DVD.

However, research analysts predict Blu-ray retail shares will begin mimicking standard DVD shares in the near future, as the high-definition format becomes more mainstream. U.S. Blu-ray player sales will generate $765 million in 2009, tripling 2008 revenue, according to firm SNL Kagan.

“Wal-Mart goes after the mainstream, female consumer,” said another retail analyst. “And as Blu-ray becomes more mainstream, you can certainly envision a time where Blu-ray’s market shares look not too different from DVD market shares.”
http://www.videobusiness.com/article/CA6657099.html
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Old 05-08-2009, 07:00 PM
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This is actually really good news for Blu ray.

I'm most interested to see how the usual group of hostiles will find a way to attack you personally over this very upbeat and positive blu ray news.

Best of luck in this thread Lee.


Peace, love and Blu harmony.
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Old 05-08-2009, 07:20 PM
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Hey, it's odd day today. Nothing will surprise me on this day.

P.S. - Go Star Trek !!!! Hopefully, it rakes in over $100m by the end of the weekend.
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Old 05-08-2009, 07:22 PM
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Many Wal-Marts keep their BDs under lock and key...that alone will make it difficult for them to dominate.
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Old 05-08-2009, 07:24 PM
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Quote:
Originally Posted by vinnie97 View Post
Many Wal-Marts keep their BDs under lock and key...that alone will make it difficult for them to dominate.
You don't like the giant spider-wrap destroying any type of slip cover or case?
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Old 05-08-2009, 07:34 PM
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Quote:
Originally Posted by motion View Post
This is actually really good news for Blu ray.

I'm most interested to see how the usual group of hostiles will find a way to attack you personally over this very upbeat and positive blu ray news.

Best of luck in this thread Lee.


Peace, love and Blu harmony.
I believe that the hostile format wars and soldiers on both sides are calming down as BD is the best in optical media. I have no desire for downloads and this is coming from a former HD DVD cheerleader.

Cheers.
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Old 05-08-2009, 08:03 PM
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Quote:
Originally Posted by motion View Post
This is actually really good news for Blu ray.

I'm most interested to see how the usual group of hostiles will find a way to attack you personally over this very upbeat and positive blu ray news.

Best of luck in this thread Lee.


Peace, love and Blu harmony.
Lee is on my ignore list, but what the fuck kinda post is this? Are you trying to bait people to attack lee personally? Come on. Masking your rather hostile character with pseudo good tidings really doesn't work. Most people read the body of what you type not the last few words.

But for good posterity -> Peace, love and harmony back to you.
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Old 05-08-2009, 08:15 PM
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Ok , so you decided to attack me instead. Well, I've got big shoulders and I'm more than happy to take one for Lee.

Peace, love, and I think I love you most of all. Now give us a kiss.
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Old 05-08-2009, 08:22 PM
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Quote:
Originally Posted by motion View Post
This is actually really good news for Blu ray.

I'm most interested to see how the usual group of hostiles will find a way to attack you personally over this very upbeat and positive blu ray news.

Best of luck in this thread Lee.


Peace, love and Blu harmony.
You mean you've never seen Lee's version of "Hannity & Colmes"?

It'll appear that he's "fair and balanced" with his topics, but there's no such thing coming from FOX NEWS.

Last edited by vikingfan; 05-08-2009 at 08:58 PM.
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Old 05-08-2009, 08:38 PM
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The data shows that the smaller population of BR buyers pick up titles at different places from the mass buyers of SD DVD. I'm thinking there's three things at work here.

More than anything else, sales volumes are still fairly low. That there's a different distribution of sales could be more tainted by this than anything else. For instance, Target had a Blu-Ray B1G1 sale in April that was in their weekly advertisement and it seemed like every title on the list popped into the BR sales charts. I'd conjecture that Target might have shifted the percentages entirely that week among B&M sellers. I don't think mainstream Suzie Homemaker or Jenny Soccermon just upped and decided to buy BR that week. I think BR fans showed up and gorged themselves, supported somewhat by which titles popped up. One sale shifted things around... from one corner of a page in the weekly Target ad. That Target did it, from the last spot in this report suggests to me that the volumes are low for that much shifting to occur. Of course, one week in April is not the same as one between Turkey day and Xmas.

Second, BR is selling to the early adopter demo. This is touched on in the last paragraph. At the same time, there's plenty of activity at mass retailers to generate those percentages. For instance, my Target ad scenario above shows there's plenty of life for BR in Tar-jay. The more mainstream fast followers look to be arriving, by those signs. Soccer mom and the mythical J6P, not yet. BR is still hovering around 10% of US Households, though. How can anything else be expected?

Lastly, Best Buy has aggressively promoted the product in store and advertised in weekly advertisements. As the article states, BR is right up front with Blu-ray. Also, it's featured in the movie section of the BB weekly ad for well over a year now. This is something Walmart doesn't do nationally as they are a weekly/monthly home needs store (where electronics are lurking in an aisle in the back somewhere). But, I notice the article makes no mention of the television advertising blitz last year for Walmart & Blu-ray. Was that of no importance?
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