Low-price Chinese HD DVD players still absent

Format backers say hardware coming before end of year

By Jennifer Netherby -- Video Business, 8/24/2007

AUG. 24 | With much fanfare, the HD DVD Promotional Group announced at the Consumer Electronics Show in January that Chinese manufacturers would begin selling low-price HD DVD players in the U.S. this year.

But as of mid-August, no manufacturer or retailer has announced a firm date for the players, although HD DVD backers say they still believe players will arrive this year.

Ken Graffeo, Universal Studios Home Entertainment executive VP of marketing and head of high definition, said he hasn’t heard a confirmed release date for the players.

“I wouldn’t be surprised if we see them by the end of the year,” Warner Home Video senior VP worldwide for high-definition Steve Nickerson said.

HD DVD backers are betting low prices on players will sway the format war in their favor and Chinese manufacturers would help bring in even lower-priced players.

Wal-Mart, which had been rumored to be considering bringing in low-cost HD DVD players from a Chinese manufacturer, isn’t talking about its plans.

In an e-mail response to a question about the mass merchant’s fourth-quarter high-definition plans and whether it will bring in players from Chinese manufacturers this year, a spokeswoman said, “We are still evaluating the situation and not making a decision to go solely with one over the other right now. Ultimately, the decision comes down to providing what the customer really wants. At Wal-Mart, we will continue to sell both DVD formats at compelling prices and let the consumer clearly vote with their purchases on which format wins out.”

Other retailers said they haven’t heard anything about possible players from Chinese manufacturers coming this year.

Value Electronics president Robert Zohn said he has contacted some Chinese manufacturers that are making Blu-ray Disc players and HD DVD players, but he doesn’t expect to bring any in this year because of concerns about player compliance.

“We don’t want to import products that don’t meet specs,” he said.

Zohn said he thinks that major retailers such as Wal-Mart are likely to be the first to bring in low-cost players because they have more resources to make sure players are compliant.