HDTV DVDs: Consumers Want Lower Prices
A recent study conducted by Warner Brothers of the High Definition disc market contains a number of very interesting entries. An article dealing with the study appears at Home Media Magazine and is located at http:://www.nxtbook.com/nxtbooks/questex/hom090207.The study taken of over 1000 consumers found that 58 percent of those who owned an HDTV had no need for either a Blu-Ray or HD-DVD player. Another 46 percent found the prices too high (not sure if player, disc or both). Another 48 percent of the respondents were indifferent to buying either Blu-Ray or HD-DVD movies with 31 percent citing price as a barrier to entry. It is further reported that 21 percent mentioned competing formats as a significant challenge.
This study supports what I have said for quite awhile now that the majority of consumers are quite happy with standard DVD and do not see enough of an improvement with HD media to justify the cost. That is the most significant barrier to higher HD media penetration. Close behind is the cost of the player and movies which are still priced way too high for most consumers. With the new Chinese HD-DVD player and the third generation Toshiba players, this may change in regards to the player. However, disc prices are far too high. Consumers are used to prices below $20 for their DVDs, often considerably lower. When most walk into a store and see prices of $24.99 or $29.99 or $34.99 and even $39.99, they just laugh and walk away. If the studios were really serious about significantly increasing the penetration of HD media, they will reduce the prices of their discs to $19.99. That will really help move some titles. The sales of a large number of titles on both formats is anemic at best. New pricing models should help spur more sales.
What this study also seems to make fairly clear is that the format war is not the barrier to the reluctance of consumers to buy into the HD game. The real solution is to reduce prices, show consumers the real benefits to HD media and release all titles over both platforms. Do all three and sales will skyrocket. -- Joseph Whip.
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7 Comments:
The study most certainly concludes competing formats as an issue. It's not as high as those who cite cost but 21% indicating this as a "significant challenge" is not a small percentage.
Lower entry prices for units and media will exacerbate the format issue when more consumers learn they can't necessarily go buy any movie they want for their single format players.
I'm ready to go hd today right now ,but I refuse to buy anything untill this format war is over.Please end it now ,I want hd dvd's!
I'm sitting out the "next gen" video war. I have a 1080p set, but thanks to Oppo and their latest 1080p upscaling DVD player, I see no reason to ditch my old DVD collection at all with that kind of quality.
How is any format going to win if nobody fights? Pick a format and get in the ring. Even if you chose the losing format at least you'll still have great movies that you can watch time and time again.
I chose HD DVD and I'm very happy with my HD movie colection so far. I've just ordered 'The Fog )Original) and Terminator 2: Judgement Day from the UK and I can't wait to see them.
Even if Blu-Ray wins I still have the movies I like.
Stop sitting on your hands. If you have an HDTV (or even a monitor) and you haven't picked up a player Jump In!
I agree somewhat with the article. I have a HD-DVD player and am glad I didn't sit on the sidelines as some have suggested to do. Although I do admit, some of the upconversion of regular dvds do come close to HD, you just can't beat the sound you get from a "direct connection" of a HD-DVD player, sound is so much discrete,open and clearer. Cost wise....HD dvds are priced too high, especially since it doesn't cost much more to manufacture a HD disc compared to a regular disc(Blu-Ray "does" cost more)I guess the studios feel the oil companies can gouge without"real" government interference so, why not the HD-DVD consumer.
I'm willing to bet that far more Americans rent rather than buy DVD's. Rental costs and availability will be a factor in this battle. I've never understood the need to own copies of something you would view only a few times, unless you were raised as a "hoarder" who has to visibly count his toys. Anyone price Beta Movies at the Salvation Army store, or VHS? The technology is changing too fast to archive it in one specific format-no value to it, IMHO.
I'm sitting it out until the format war is over. I realize that, as someone else noted, if no one will fight, no one will win. That poster did have one thing wrong, however. While I will still have my HD DVDs or Blu Ray disks even after one of them loses the battle, I will have to maintain yet another player on the media rack. That rack now contains the standard DVD player, the receiver, two DirecTV DVRs, and even an old VCR.
Also, should I opt in and start getting, say, HD DVDs, and Blu Ray wins, how will I watch the HD DVDs in 5-10 years when the HD DVD player goes belly up and I cannot find a replacement.
I think that if there was just Blu Ray or just HDDVD, and even if the prices of teh software remained the same, I like most prople would still purchase some of the special DVDs in the HD format, and most of the regular ones in the SD format. At least I know that in 20 years I will still be able to watch all of my SD Star Trek DVDs on something (you can still buy VCR's).
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