Blu-ray player sales jump after Warner move
JAN. 23 | On the heels of Warner Bros. Entertainment’s end of 2007 announcement about dropping its HD DVD support, Blu-ray Disc set-tops dominated 90% of all high-definition hardware unit sales for the week ended Jan. 12, according to the NPD Group.
HD DVD set-tops represented 7% and dual-format players totaled 3% of sales during that seven-day frame. For the preceding week ended Jan. 5, before Warner Home Video president Ron Sanders publicly endorsed Blu-ray at the Jan. 7-10 Consumer Electronics Show, HD DVD set-tops and Blu-ray set-top unit sales were split 50/50.
Warner dealt a serious blow to HD DVD with its decision to exclusively release Blu-ray titles after May. But hardware sources indicate that other factors also could be at play, including ongoing retail promotions that essentially give away a free Blu-ray set-top with the purchase of a similarly branded high-def TV. In fact, for the week ending Jan. 26, Ken Crane’s, Best Buy and Circuit City were advertising a free Sharp BD-HP20 Blu-ray player with purchase of any Sharp 1080p LCD TV, representing about $500 in savings. Best Buy and Circuit City also were promoting similar Sony Bravia TV/Sony Blu-ray player bundles during the period.
For the week ended Jan. 12, Sony commanded the Blu-ray market share at about 34%, trailed by Panasonic with 27% and Sharp with 23%, said NPD.
NPD analyst Stephen Baker agrees that Blu-ray hardware made a powerful retail statement over its HD DVD competition. But he warned that future promotion from either side may work to alter the market split.
“Clearly, this is a good sign for Blu-ray and not such a good sign for HD DVD,” said Baker. “But before everyone rushes to judgment, we need to see what happens in the next few weeks. It’s easy to manipulate sales volume by promotion and price cuts. One thing that we’ve learned [at NPD] is that one week of sales is not a great indicator of a long-term trend.”
On Jan. 13, Toshiba began slashing pricing on its HD DVD players, including cutting $150 off the HD-A3 to $149.
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| Submitted by: | The Truth 1/25/2008 4:33:46 PM PT |
| Location: | CA |
| Occupation: | FILMMAKER |
NPD Says Blu-ray January Sales Data Misconstrued by Press NPD: Sky Isn't Falling for HD-DVD, Blu-ray Isn't Champ Yet 01/24/08 Sales data for HD-DVD and Blu-ray players and movies has been misconstrued lately by various outlets, with reports implying that HD- DVD sales have fallen at an amazing pace while Blu-ray sales have blasted through the roof. Not so fast, says the NPD Group. While select articles have implied that HD-DVD as a format is doomed and the sky is falling for the format's supporters, the NPD Group this afternoon reinforced that sales results from a single week do not necessarily indicate a trend, and that the week in question had several intriguing variables that have gone unreported. The NPD Group attempted to quiet the storm of online scuttlebutt with the following statement: "As you may have seen, there are attempts being made to portray NPD's weekly sales tracking figures for next generation DVD as a trend. We want to remind you and make clear that it is not accurate to make long term assumptions based on one week of sales -- a cautionary point that NPD has made as well. "The facts are that during the week that is being singled out, both Blu- ray disc players and software were being given away for free with the purchase of 1080p TVs. It is also important to note that the instant rebate promotions that had previously netted Toshiba's players' MSRPs to $199 and $249 had actually ended on Jan. 5th -- causing an increase in HD DVD's MSRP back to $299 and $399 during that same week. Since Toshiba's retail price move on Jan. 13th to $149 / $199 -- Toshiba is seeing very positive sales trends at retail. This reinforces the fact that price is a significant driver of sales. "Toshiba's HD DVD players represent a significant value to the consumer and the marketing campaign that just began is proving effective."
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