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High-Def DVD Player Sales Rising?
Toshiba's new low price is getting consumers' attention.
By Swanni
 
Washington, D.C. (December 2, 2007) -- High-def DVD player sales are rising, but retailers say HD DVD's new lower price is what's driving consumer interest and awareness.

That's according to an article by Video Business, which reports that both Blu-ray and HD DVD players have sold well early in the holiday season.

But the decision by Wal-Mart and Best Buy to sell Toshiba's HD-A2 for $99 during a pre-Black Friday sale triggered new consumer interest in the category.

“If nothing else, Wal-Mart making the Toshiba player $99 got a lot of airplay, and people are asking what is HD DVD?,” Bjorn's COO, Doug Bravin, told Video Business. “They started to make it mainstream.”

After the special $99 sale, many retailers set the price of the entry-level Toshiba player under $200, which is roughly $200 off the lowest-priced Blu-ray player.

Still, Bravin said Bjorn's did equal business with Blu-ray and HD DVD players, crediting Blu-ray's new "I Do Blu" advertising campaign.

But Rick Souder, Crutchfield's executive vice president of merchandise, said Toshiba's lower price made the difference. (Crutchfield set the player's price at $129).


“The Wal-Mart thing and other indicators show that people aren’t hung up on the format as much as they are about price,” said Souder. “We sold out of every (Toshiba HD-A2) that we had at $129. People are willing to make that level of investment, but they didn’t seem willing to spend $399 and $499.”

The HD DVD North American Promotional Group said last week that 750,000 HD DVD players (including XBox 360 adapters) have been sold to date. That includes a big boost in the early days of the holiday season when the player's price was slashed to under $200.

Blu-ray standalone player sales are unknown, but they are estimated to be far less than HD DVD. (However, Blu-ray is in more homes because Sony's PlayStation 3 has a Blu-ray player inside.)

Bjorn's, says Video Business, reports that high-def DVD players represented 15 percent of its DVD business last year. But this year that number jumped to 50 percent.

"People are becoming aware of next-generation and high-def content as it relates to HD DVD and Blu-ray,” Matt Duda, director of merchandising at Ultimate Electronics, told Video Business. “You can credit Wal-Mart for raising that awareness certainly. And more people are seeing advertising on TV for HD DVD and Blu-ray. New releases now say they are also available in HD DVD and Blu-ray, and that gets people asking questions about them.”

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Swanni (Phillip Swann) is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.


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