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Retailers: Consumers more driven by price than features

By Susanne Ault -- Video Business, 7/6/2007

JULY 6 | Samsung’s second-generation player is among the few Blu-ray Disc stand-alones in the market to boast an Ethernet connection, but consumer reception is so far relatively quiet in a market that is currently more driven by price than features, say retailers.

The built-in Ethernet port in the Samsung BD-P1200 represents an advance over the company’s first-generation model, which lacked the high-speed Internet connectivity feature. Also, the beefed-up Samsung, which has been shipping to retail since April, is listed at $599, 40% lower than the original.

Consumers can use the port to download firmware upgrades and other Web-based material.

HD DVD players are required to offer Internet capabilities, but the feature is optional on Blu-ray players. Sony's PlayStation 3 has a high-speed connection, and some limited networking abilities are available on elite Pioneer Blu-ray players.

Although an improvement, the Samsung BD-P1200 is entering a market far different than when the manufacturer launched its first-generation model in June 2006. At that time, the player enjoyed the enviable position of being the first and only Blu-ray player available, until November when Sony launched its PS3.

Today, the second-generation Samsung is contending with numerous Blu-ray players, including Sony’s current roll-out of even cheaper $499 Blu-ray set-top models. Other rivals include Panasonic’s $599 second-generation player and the $599 PS3.

“I would say there is not a lot of buzz one way or the other,” said David Workman, director of buying group the Professional Retailers Organization, of the BD-P1200. “It’s just another player in the market, where it’s not breaking any new ground on price point.”

Best Buy, Circuit City and Amazon.com are among the retailers offering the second-generation Samsung model. At Amazon.com last week, the player was ranked second under Sony’s BDP S300 $499 model among Blu-ray stand-alone entries.



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