First the bad news - the U.S. economy ain’t all roses lately. The good news? Home entertainment spending is rolling right along with over $6 billion spent on DVD on Blu-ray discs alone. Add in rentals and that number climbs to over $10 billion. That’s quite a relief for industry execs who had braced themselves (and the Blu-ray format) for a rough ride through 2008.
Why the success? Experts suggest that given the high cost of going out (dinner, drinks, movies) the home theater experience has become more attractive and certainly more frugal. “It’s a bit reminiscent of the last recession during the ’90s, when consumers were also not going out as much and wanted a home entertainment experience,” says Craig Kornblau, president of Universal Studios Home Entertainment. “I think it’s extraordinary that the business is holding up this well, given how much of consumers’ dollars are being sucked up by increases in gas and food.”
Lori MacPherson, general manager for Walt Disney Studios Home Entertainment, North America adds “I think people are becoming pickier on what they spend their money on, but home entertainment always represents a good value. Thirty dollars for a Blu-ray movie that you can watch over and over again is still a great value.”
I could argue the $30 price point, and i suspect most consumers would agree that $15-20 would be a better sweet spot for our wallets. However, Blu-ray is gaining ground and many consumers are obviously comfortable with the current pricing, players included. According to Mike Dunn of 20th Century Fox Home Entertainment, “We are trending 8% Blu-ray sales [per title], and at the end of the year, we will be between 10% and 12%.”
He added retailers are expanding their Blu-ray shelves without eliminating standard DVD inventory and noted that market has widened 5% in the last year over the same period the prior 12 months. Indeed, Dunn’s estimates ring true as Blu-ray sales (discs) generated more than $200 million in the first half of this year - a 300% increase over this point in 2007.
The future of Blu-ray has been beaten every which way but loose here on EH, but regardless of format preferences, it’s notable that the new kid on the media block has done so well in such a hostile environment.
Feel free to comment below.
Source: videobusiness.com
$500 for a BR player and $30 a disk! Just goes to show you people need to be taxed more if they have that much money to throw away!
Wow, Soundzilla hit the nail right on the head. He and I are similar the way we collect and rent movies. If I love it, I buy it. If I think I will only like it, I rent it. If I don’t think I will like it but are pushed by friends or just curious by some scenes I saw advertised, I will down load it :-) Simple as that!
I understand people who are happy with DVD. Its a great, cheap medium for sure....for now!
When that same person gets a new 40-52 inch HD-TV and then sees a good HD movie via either free to air HD or cable/sat , they will realize the full potential for their new TV.
1080p is the latest big buzz “word” and this will drive people to match a player (blu-ray) to their 1080p TV.
My boyfriend is a well educated man who is a project manager yet he didnt own a DVD player and still uses VHS, mainly to record shows. If it were not for me, this may have never changed. SO, for sure some people will never buy blu but I bet those who want big screens will buy it ASAP :-)
Prices ARE coming down so be patient people. Its still cheaper that when DVD was the same age!
Of course I buy movies. I enjoy having a collection I can call up whenever I want without waiting for someone to mail it to me.
There are some films I know I will watch more than once. Those end up in my collection. If I were to take my wife to the theater to see a movie it would cost a minimum of $22.00 since tix are at least around $11 each. That’s without popcorn or other niceties. If there’s a chance I’ll have guests over to watch something I already enjoy, it’s something I’ll buy for $20-$30 no problem. If I have to plan ahead and order my rental before the guests arrive, it’s more of a hassle to me than pulling it from my cabinet when they show up.
Some people prefer renting, some don’t. I’d spend $204/year with Netflix to keep 3 discs around at all times. That would buy me ten Blu-ray movies at $20 a pop. I’d rather have my 50 favorite movies on-hand at all times than to spend 5 years renting stuff and sending it back. Truth be told I buy more than ten movies a year so I spend more than I would on renting, but I’m happy with the immediate accessibility of my collection.
who are buying those things, i am ok with my dvd.
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How is it throwing away money? The point of the article is that folks (me included) would rather spend $20-30 on an BD than going to the movies and spending that much per person. And if you can get a disc that will offer a better audio and visual experience, why not go for it? And last time i checked, some DVD pricing is on par with BD pricing! Check Amazon today. I Am legend DVD is going for 18.99 and the BD is 18.95. And the full-screen is $20.49!
And if you are a video- or audio-phile, theres no doubt you need to make the move to BD.