Next wave of high-def adopters to affect format war
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Research group describes mainstream buyers as more price conscious
By Susanne Ault -- Video Business, 12/11/2007
DEC. 11 | The demographics of the next wave of high-def adopters, who are considered more price-conscious than the earlier adopters, might work to sway the format war in HD DVD’s favor, according to research firm The Diffusion Group.
The first group of high-def buyers consisted of technology enthusiasts with a large appetite for videogames, said TDG. That likely steered many to the Blu-ray-capable PlayStation 3.
But now more mainstream consumers are expected to start diving into high-def, and they are more influenced by price than by new technology, TDG reports. That could boost the HD DVD camp, as the cheapest available Blu-ray players are on average about $100 more than the cheapest available HD DVD players.
This more mainstream group, dubbed HDTV Intenders, tends to be younger, single, more ethnically diverse and have lower annual household incomes than the early adopters who already own HDTVs.
TDG notes that among HDTV Intenders who say they are likely to purchase an accompanying high-def player in the next six months, 43% prefer HD DVD, 27% prefer Blu-ray and 30% remain undecided.
“The strength of this preference and its correlation to mainstream attributes are notable,” said Michael Greeson, president and principal analyst with TDG. “Today’s high-def DVD owner is likely an early adopter with a knack for power gaming; most certainly tech sophisticates not at all mainstream in temperament. The next wave of buyers is comprised of early mass-market consumers, a much larger segment with focus on practical considerations such as price. It is TDG’s opinion that the format which can best address the needs of mainstream consumers will emerge as the winner of this format war.”
Comparing high-def hardware owners with those who still intend to buy, about 67% of non-owners said they typically wait for prices to come down before considering purchasing. About 37.8% of high-def hardware owners agreed with that statement.