Blu-Ray market penetration

[mrstampe]

Blu-ray Now In 10 Million Homes

--------------------------------------------------------------------------------
Blu-ray players are now in 10,000,000 homes according to a market research study by the firm, Interpret. The study shows more than half of U.S. consumers are aware of Blu-ray, up from zero percent just two years ago. Clearly, those ad dollars are working to both beat off Toshiba and Microsoft as well as to make people know that there is a better way to watch movies.

Prices on Blu-ray players have not dropped significantly since Toshiba pulled the plug on its competing format, HD DVD earlier in 2008. Playstation 3 console sales have helped significantly with increasing marketshare and studios work to release films that speak to the gaming community. HD DVD players were selling for under $100 for a capable machine while Blu-ray players are selling for between $300 to $400 for starters currently in the market place.

But if anyone thinks Blu-ray has won the battle at this stage consider that 10,000,000 homes represent about nine percent of the total households in the market. The reigning home video champion, DVD, is sporting a 91 percent marketshare. At some point the studios will have to work to put Blu-ray titles out first, get solid distribution in the warehouse stores like Wal-mart and Costco and put downward pressure on player prices. At that stage Blu-ray can and will gain more marketshare. The question is: will lower resolution 720p and 1080i downloads and or pay-per-view options trump the higher resolution and overall better quality Blu-ray disc. Apple and others are betting convenience will out sell quality again (think 1/4 the resolution of CD tracks being sold a’la carte on iTunes) with their pending 720p downloads. The studios need to be careful in order to nurture Blu-ray into a viable format for the next five to 10 years. Signs from this study show that they are doing a pretty good job.

by: Jerry Del Colliano from AVRevForum.com

Blu-ray Awareness Tops 60%, But Hardware Penetration Low
Interpret finds that Blu-ray hardware penetration is only 9 percent.

By Jason Unger

04.03.2008 — Sixty percent of U.S. consumers are aware of Blu-ray discs, but hardware penetration for the high-definition DVD format sits at only 9 percent, according to a new survey.

Research firm Interpret, LLC has found that Blu-ray and HD DVD owners continue to buy standard-def DVDs at a rate of 7.7 to 8.7 for high-def titles during the past six months, but more available Blu-ray titles are needed to grow that difference.

“Winning the format war was just the first step for Blu-ray,” says Interpret CEO Michael Dowling. “Now, movie studios worldwide need to work together to address the structural challenges to the format’s growth.”

Interpret suggests that low HDTV penetration rates are hindering Blu-ray’s adoption in the U.S. and worldwide.

“The UK, US, and Japan represent opportunities to grow the Blu-ray installed base quickly,” says Dowling.

“In France and Germany, studios will need to work in parallel with HDTV manufacturers to more rapidly grow the HDTV installed base first.”

The survey asked 600 adults ages 18-54 in the U.S. during January, right after Warner Bros. announced their decision to support Blu-ray only, which started a chain of events that eventually led to HD DVD’s demise.

from CEPro.com

10 million homes with Blu-Ray is an impressive number in just two years, even though that represents only 9% of homes! I waited for the format war to be over before buying a PS3. Further market penetration through the above mentioned paths can't come soon enough in order to drop player and disk prices to something more reasonable. For now, Blockbuster's Blu-Ray library is my source for affordable 1080p media!!

[Sonnie]

I wonder what the real figure for those who will use Blu-ray is? 2-3% would be my guess. The other 6-7% purchased the PS3 as a game console, not being concerned with Blu-ray. Are there any surveys from an independent source to verify the numbers?

[SteveB]

Sonnie, That's the point I was making back when numbers of players were being compared. To me is was unfair to count a gaming system that plays movies. I'm not buying a BD player until prices come down to a reasonable level, say $350 for something above entry level.