Some TV series go from Blu-ray to DVD only

PHYSICAL: High prices account for lower adoption of TV BD

By Susanne Ault -- Video Business, 12/4/2009

DEC. 4 | PHYSICAL: Several TV shows that had upgraded to Blu-ray Disc have shifted back to standard-definition DVD-only releases, indicating hurdles in the adoption of the category.

Series whose latest seasons are being released only on standard DVD, though previous seasons got Blu-ray treatment, include Sony Pictures Home Entertainment’s Rescue Me and Damages and Warner Home Video’s Nip/Tuck.

Studios and retailers note that consumers have been relatively slow to embrace the overall TV on Blu-ray genre. To date, the average TV title streeting in standard and high-def sells just 5% of its copies on Blu-ray, sources said. That compares with a 12% to 15% Blu-ray average for theatrical new releases and 25% to 30% for some high-profile films.

One main reason for the discrepancy, according to stores and studios, is the big difference in pricing on standard DVD and Blu-ray TV sets. For new release films, the difference has shrunk to around $5, but the spread on TV remains at $10 or more. For example, Universal Studios Home Entertainment’s fifth season of The Office, which bowed on Sept. 8, is retailing for $41.99 on Blu-ray and $28.49 on DVD at Amazon.com. Warner’s Jan. 5 second season of Chuck is similarly split at $47.99 Blu-ray and $38.99 DVD at the site.

As a result, studios continue to be cautious about which TV shows they bow on Blu-ray, as well as pulling back from the format when necessary.

“The significant amount of content and multiple discs make the financial model challenging for many TV series on Blu-ray and is a significant reason for the methodical approach studios are taking to release product,” said Rosemary Markson, VP of TV marketing for Warner Home Video. “Unfortunately, Nip/Tuck Blu-ray sales were insufficient to continue releasing in the format.”

Warner is currently analyzing its own TV on Blu-ray pricing plans and expects to make some changes next year, Markson said.

Retailers note that some of their best performing Blu-ray TV sets are those priced similarly to standard DVD versions, such as Lionsgate’s Mad Men, whose second season was marked with the same $49.99 SRP for both formats.

“Over half of our Mad Men copies sold on Blu-ray,” said David Barker, VP of e-commerce marketing at DeepDiscount.com owner Infinity Resources. “But there’s The Office, with a $69.99 SRP Blu-ray and $59.99 SRP DVD, where just under 5% of copies sold in high-def.”

At InMotion Entertainment, its standard DVD/Blu-ray ratio is 5 to 1 on new release features and 10 to 1 on TV. The chain will mostly order all new release films on Blu-ray, but it will continue to cherry-pick available TV titles in the high-def format.

“I think they need to be real close in pricing, within $5,” said Steve Torr, director of purchasing at InMotion.

But like film, when there is a breakout TV Blu-ray title, it is usually within the action genre. Deep Discount sold 14% of its season four copies of Walt Disney Studios Home Entertainment’s Lost on Blu-ray, beating the industry average.

Although the upcoming Dec. 8 fifth season Blu-ray of Lost is one of the genre’s most expensive ($79.99 SRP, widely retailing for about $50), stores are upbeat about its sales.

“Our current product strategy is focused on releasing TV shows that can best showcase the superior picture quality of Blu-ray, and that does lend itself particularly well to the action and science-fiction genres,” said Warner’s Markson.

Strong TV Blu-ray performers at Warner include the second season of Terminator: The Sarah Connor Chronicles and the first season of Fringe, which sold more than 21% and 15% of their titles on Blu-ray, respectively.