Los Angeles (CA) – So the Blu-ray disc is the only physical high-definition format left in the market, but that isn’t going to translate into lower prices any time soon, according to Andy Parsons, the Chairman of the Blu-ray Disc Association.  Parsons, who is also the senior VP of Advanced Product Development at Pioneer Electronics, told attendees at the DisplaySearch/NPD HDTV conference in Los Angeles that Blu-ray volume needs to increase before content makers and set-top makers can cut prices.

Parsons was speaking as part of a panel on high-definition formats and told the audience that Blu-ray hardware and disc prices are behaving the same as when DVD players were first getting popular.  “There’s not enough market [volume] to lower the price,” Parsons said, adding that companies have to build “awareness and demand for the technology," before prices can decrease.

In terms of market volume, DVD players and discs still rule the market and Blu-ray is being sold at a premium (relatively speaking).  The cheapest BD player is currently selling for approximately $230 with many players still selling for $300 to $600 dollars.  DVD players in contrast are almost give-aways these days, costing less than $100.  Blu-ray movies often sell for $25 and up while DVDs can easily be bought for $20 and under.  But Parsons points out that DVD didn’t start out at $49, adding, “people complained about it [pricing] back then too.”

Even though Blu-ray easily fought off HD-DVD, Parson admits the format isn’t going to get a free ride from consumers.  Digital downloads will be a worthy threat to Blu-ray, but he says people understand packaged media better and that consumers want something that, “they can hold in their hands”.  Furthermore, Parsons believes packaged media will remain the dominant format.

But in the end, DVDs could be the biggest threat to Blu-ray.  According to Danny Kaye, EVP of Global Research and Technology Strategy at 20th Century Home Entertainment, don’t count the standard definition disc out just yet.  “We buried DVD long before its time … it’s going to be a long time before it dies,” he said.

Hell

Sep 17, 2008 04:34     

"Even though Blu-ray easily fought off HD-DVD" No it did not, it was a long, protracted fight with many sides switching around from start to finish with huge price wars and many underhanded back door deals by Sony. Easily my ass.
Revrant report abuse vote down vote up Votes: +16

Headless chickens

Sep 17, 2008 05:45     

Very amusing. Just as the worst recession in 25yrs (maybe even since the 1930s) is about to hit the BDA are still whining about wanting to keep margins high. Blu-ray is the new laser disc. It's absolutely not about to become 'the next DVD'. This sort of nonsensical BDA tactic/comment merely cements that inevitable reality. A high margin niche is all many of said it would wever be & we were right.
DaveBG report abuse vote down vote up Votes: +17

consumers want something that, “they can hold...

Sep 17, 2008 07:18     

consumers want something that, “they can hold in their hands”... Well, all that DRM means that we just hold that in our hands but nothing more! But hey, at least he got something right as a concept. EA Games still does not get it. And, it wasn't too early last winter when they dropped the prices to give the final blow to HDDVD? But what else could be expected by association with movie producers and other DRM-ers. I seriously don't envy them. They do what they do for the money and not for the passion of doing it.

Virtualban report abuse vote down vote up Votes: +7

DVD Player Prices

Sep 17, 2008 07:47     

>> DVD players in contrast are almost give-aways >> these days, costing less than $100. Blu-ray >> movies often sell for $25 and up while DVDs can >> easily be bought for $20 and under. You can get a fair DVD player for $30, and many DVDs are selling at $9.99. The problem is that while the increase in resolution from DVD to Blu-ray is very good, it's much less of a substantial improvement than the VHS to DVD transition. Just sitting and watching a movie, most people are going to be just fine with standard resolution, especially at current prices. I think that Blu-ray is going to get a pretty big jump when people buy HDTVs for the digital broadcasting transition (despite not having to do so), but until more people have HDTVs, Blu-ray is simply not a necessity.

Steve report abuse vote down vote up Votes: +5

High Prices = No Buyers

Sep 17, 2008 08:52     

I would prefer to buy Blu-Ray but the $20 (AUD) premium over DVD is not acceptable, especially when the DVD comes with two discs and extras. This means I don't buy Blu-Ray unless it is an exceptional title (Planet Earth). I have a player, that is not my problem, I got it as part of the PS3. So pull your head out of the sand, drop the prices and your margins, and watch the Blu-Ray purchases increase noticeably.

Aaron report abuse vote down vote up Votes: +10

I chose HD-DVD...

Sep 17, 2008 09:04     

So if they don't want to continue with HD-DVD, that's fine. Not interested in Blu-Ray, sorry.
Hax Or report abuse vote down vote up Votes: +7

sounds like collusion to me

Sep 17, 2008 09:15     

Classic chicken and egg crap. They (the bluray consortium) need to lower the prices before it will become widespread. VCR's were $800-1000 when they first came out and didn't become common until they went under $200. DVD, same story. Blueray just doesn't have enough benefit over dvd to compell me to spend the $$$$. I could care less about something I "can hold in their hands". The guy is delusional to think people want that because that's what he has to sell. If netflix could give me access to all their content as downloads to play on my tv, I'd never buy another player (dvd or bluray) or content on either format again. And yes, I'd pay somewhat more $ for that convenience and access to content. But the download convenience doesn't mean anything without massive content.

bob the contentJunkie report abuse vote down vote up Votes: +5

A vicious circle...

Sep 17, 2008 09:35     

Blu-ray prices are way to high for the 'average' consumer. Until they drop, significantly, most of Joe Public isn't going to make the switch. The quality's better but not enough to warrant spending all that money. The discs hold more, but Joe Public are only interested in the main feature anyway. Add this to the fact that there are a lot of people out there who still use VHS and the economy's of both the US and the UK are very poor at the moment then you going to get low sales, hence higher prices. Blu-ray is a luxury not a necessity and many can't afford one it today's climate. Blu-ray MUST drop it's prices before Xmas by a good 30% if they want to see a big increase in sales. I for one won't be buying one until both the players and discs are no more than 20% above the cost of a comparable DVD version now. Oh and it needs to be able to record TV programs!

TickleOnTheTum report abuse vote down vote up Votes: +5

HA HA HA I TOLD YOU SO!!!!!!

Sep 17, 2008 09:38     

HA HA HA HA HA HA HA HA HA HA HA HA I TOLD YOU SO HA HA HA HA HA HA HA HA HA I TOLD YOU SO BLEW-RAY SUCKS .... YOU YOU ARE ALL STUCK WITH IT GO HD-DVD!!!!!!! HA HA HA HA HA HA HA HA HA HA HA HA I TOLD YOU SO HA HA HA HA HA HA HA HA HA I TOLD YOU SO
09 F9 report abuse vote down vote up Votes: -4

standard DVD not done yet, BD overpriced

Sep 17, 2008 10:08     

let's face it, blu-ray players are extremely overpriced and don't offer that much more compared to DVD, only higher resolution video because of higher capacity, DVD offered so much more extras compared to VHS when it came out. if they want blu-ray to be attractive to the masses they need to use decent prices, not prices so the publishers can pay Brad Pitt's next SUV and mansion. call me a commie, but the state our capitalist economy is currently in, is seriously flawed, actors shouldn't be paid that much

JohnnyricoMC report abuse vote down vote up Votes: +5

consumers want something that, “they can hold in their hands”...

Sep 17, 2008 10:40     

Yes because that worked out so well for the music industry
Pete report abuse vote down vote up Votes: +7

i will just wait !

Sep 17, 2008 10:50     

Dont lower your price ... i dont care i will just wait !
John report abuse vote down vote up Votes: +1

Blu-ray needs PC market

Sep 17, 2008 10:58     

Face it folks, DVDs didnt become a universal media until every modern computer was able to play/burn one. Now the PC market may not have caused the world wide DVD acceptance, what it did cause is mass production of the necessary hardware by many companies. And as you all know (or should), even through a simple application of an improvement curve on manufacturing processes reduces the overall cost of product manufacture. Not everyone is going to be able to afford an HDTV, however everyone has a computer. And few a small price a new computer could have a blu-ray player that can play hi-def movies. What Blu-ray needs is a kick toward PC market.

Oleg report abuse vote down vote up Votes: +5

Lower Prices will = more money

Sep 17, 2008 11:09     

its real simple, lower the prices and you will see more people buying the blu-ray versions instead of the DVD, you will get more people buying a blu-ray player and you will get more money.
Lifewish report abuse vote down vote up Votes: +3

Blu-Ray is the new Laser Disc

Sep 17, 2008 11:17     

"Blu-Ray is the new Laser Disc." (Quote DaveBG) My opinion exactly.
StudyMaster report abuse vote down vote up Votes: +3

Crap in a Basket

Sep 17, 2008 13:16     

First off, we're not in a recession as somebody stated above. A recession is 2 consectutive quarters with negative growth. We haven't had one quarter yet(not saying this next quarter isn't). Blu-ray is needing to drop prices but they can't because they need to recoop the payoffs to the movie studios. To think HD-DVD players would be close to a $100 if they would have won the 'format war'. Glad the corporations picked the format for us. Now we'll wait till something better will come along. HD-DVD FTW!!

Headward report abuse vote down vote up Votes: +5

Higher price and volume at the same time? No BD, thanks.

Sep 17, 2008 13:22     

Higher price and volume at the same time? No BD, thanks.
Roy report abuse vote down vote up Votes: +1

We can't lower prices

Sep 17, 2008 15:30     

because we want to both keep ripping off the earlier adopters as well as keep the market conditioned for accepting $30 BR discs. Just like CDs [which started out priced at double the cost of tapes and never really came down]. The industry wants the cost of players to come down, but they want the cost of discs to stay up, as the extra money is well, 100% profit.
dave report abuse vote down vote up Votes: +6

Re: people understand packaged media better

Sep 17, 2008 15:32     

I love these idiots at the big companies telling us what we want. Yes, I want yet another physical format I can 'hold in my hands' because I am an idiot and don't understand digital downloaded media at all. I can't grasp the concept of a non-physical format, regardless that they've been around since the mp3 went mainstream a decade or more ago. I can't fathom paying for something like that. I would much rather buy another physical format that will be obsolete in a few years, can wear out and be damaged. I'd also rather have to switch discs all the time, rather than have everything available at a click. Thank **** these glorious morons are telling me what I want, otherwise I'd never know what to buy. I'm done with all physical media. It's clunky, cumbersome, takes up unnecessary space and very inconvenient.

Sichas Ruin report abuse vote down vote up Votes: +5

new laser disc?

Sep 17, 2008 16:13     

BD isn't new laser disc, not by a mile! every ps3 ia a BD player...we're talking millions of players out there! In the end, BD will prevail although I'm certain DVD won't disappear...but neither will VHS for that matter.
adrian report abuse vote down vote up Votes: -5

Gotta do what you gotta do

Sep 17, 2008 16:33     

How else are they supposed to recoup their multi-million dollar exclusivity deals and keep their generous bonuses?
Chris report abuse vote down vote up Votes: +3

To: Sichas Ruin

Sep 18, 2008 01:07     

I have a file server that I organize and maintain for all media entertainment in my home. And I would never go for something I cannot add to playlists of that server so content can be available to me in a mouseclick. But my dad on the other way can't do the same. And he's not a computer illiterate. But still registering TV channels on a newly bought TV set for example is a pain in the ass that he would not go through. So, physical media that people like my dad can just pop in and out and physically organize (and even scratch and loose) is meant for those kind of people. And since corporates know better, they want you to follow them instead of them following you. That's what happens with monopolies and oligopolies.

Virtualban report abuse vote down vote up Votes: +0

I don't really care if prices stay up.....

Sep 18, 2008 16:47     

I don't really care if prices of players stay at the current level. What I want to go down are the prices of the BD Recorders (to about $100) and BD Discs (to about $1 for SL and $2 for DL) so I can use these for data storage and making my own BD movie disks from my HD Video camera.
rcorrino report abuse vote down vote up Votes: +1

Lousy movies

Sep 19, 2008 08:52     

The main reason I haven't bought a BlueRay player yet is that the range of movies available is so small, and so bad. They've chosen mainly spectacular action movies that will show off the high definition capabilities of Blue Ray, regardless of whether the movies are otherwise any good. For Blue Ray to really take off, there need to be lots of good movies available that you might actually want to watch as movies, rather than as showpieces for the technology. For most films, unless you've got a humungous screen, the higher definition is a fringe benefit, not the main event. Blue Ray needs more films, better films, and the films need to cost only slightly more than standard DVDs. Then, and only then, it will take over the world - regardless of whether the player prices have fallen.

mikhailovitch report abuse vote down vote up Votes: -1

Chicken and the egg

Oct 21, 2008 18:12     

Consumers are not buying Blu-ray now because prices are too high. Studios are charging a huge premium for the same title on Blu-ray now because the volume is too low. Normally the early addoptors will slowly drive up the volume for a new technology, breaking the cycle and allowing economys of scale to drive prices down and profits up. With the current recession, the price difference will prevent that from occuring for years. If the studios do not wish to have Blu-ray's place cemented as a nich player, then need to proactivelly drop the prices to drive volume up before the end of the recession. As long as you can go to a big retailer and get a decent selection of DVDs for $10 or less and can't find any Blu-ray for less than $25 the format will never gain significant volume.

Joe report abuse vote down vote up Votes: +0