Posts Tagged ‘BD’

Hmmm…A New Blu-Ray Player. Why Not?

The Blu-ray format has struggled for several years to gain the wide acceptance accorded to its lower-resolution sibling. Even though the latest market figures show Blu-ray player penetration at nearly 20% of U.S. households, packaged media rental and sales continue to decline (they’re down about 7% Y-Y), and Blu-ray disc sales and rentals are not sufficient to make up the difference.

There’s no question that the format war with HD DVD was a major setback. (China is now using a version of HD DVD as its de facto blue laser DVD format.) But the biggest problem Blu-ray had was bad timing – the world is slowly moving away from packaged media to digital downloads and streaming.

The high cost of players and discs didn’t help, either, and in fact may have hastened the move towards digital file capture. In a conversation with a Disney executive a few years ago (right after Warner Brothers pulled the plug on HD DVD), he stated that the easiest way to make sure Blu-ray caught on was to stop pressing red laser DVDs and stop manufacturing red laser DVD players.

Time marches on. Blu-ray prices have plummeted for both the players and discs. In fact, you can buy the four-disc Toy Story 3 set from Amazon.com for $24.99 right now, and wind up with the main feature in the BD format, a BD extras disc, a red laser DVD, and a digital copy. That’s an amazingly low price on a supposedly ‘hot’ new BD release.

So, why did I decide to buy a new player? For starters, they are dirt cheap right now, and getting cheaper by the day. I paid $180 for my Panasonic DMP-DB85  through B&H Video, a price that was matched by Amazon.com. And that included free shipping via UPS Ground, which usually means overnight for me for anything coming from B&H.

Secondly, I wanted a player that would work with the CEC interface on my Panasonic TH-42PZ80U plasma. One-touch control of the player and TV is just easier for family members than fussing with a bunch of remotes.

Third, our family subscribes to Netflix, so I was interested in adding streaming to my bag of media tricks. Granted, my TiVo HD can also stream, but I don’t want to tie it up if I’m recording shows to one or both of the internal DVRs.

Fourth, Consumer Reports gave the DMP-BD85 its second-highest ranking in a recent review of Blu-ray players. Yes, I subscribe to CR, and they do a bang-up job of product testing – particularly TVs and accessories.

Finally, the image quality from the Panasonic DMP-BD65 is very good, rivaling the OPPO upscaling player it replaced. Plus, the Panasonic remote is a lot easier to use than the older-style OPPO remotes. Readers who have older OPPOs know exactly what I mean.

I don’t play that many DVDs any more, but this unit should suffice as my media hub for a while. The DMP-BD85 comes with a USB 2.0 plug-in 802.11n adapter and isn’t too difficult to configure, although the on-screen menu could use some massaging. I had everything up and running in 5 minutes, even on a secure network.

Are we getting closer to the day that conventional DVD players become extinct? Well, Wal-Mart announced they’ll have a $65 Magnavox Blu-ray player available on Black Friday. And you can buy Panasonic 65-series players for about $100 now at BJ’s Wholesale Club.

So, yes – we are getting closer to that day when Blu-ray is the only optical disc format for packaged media. Only question is, will it happen before the American consumer makes a wholesale move to digital streaming and downloads?

3CD: Well, that was fun. I’m bored. What’s next?

I stopped in at my local Best Buy this past Saturday (10/30) to look for an inexpensive upscaling DVD player (yeah, I know that’s redundant) for my in-laws.

While I was there, I wandered around the store to see what was being showcased in the store demos. 3D, which was a big thing back in April, had clearly fizzled out – at least, as far as store personnel were concerned.

Of four possible 3D demo stations, only one had any glasses – the Sony Bravia 3D demo in the Magnolia section. A nearby Panasonic 3D demo had clips from Avatar rolling in 3D on a plasma TV, but not a pair of glasses to be found.

At the entrance to the Magnolia store was a Samsung 55-inch LCD 3D demo. Trouble was, the channel was set to a 2D telecast of the Michigan State – Iowa college football game and no 3D glasses were anywhere to be seen.

Behind the service counter in the regular TV section was yet another 3D demo, this time featuring the 46-inch UN46C7000 Samsung LCD TV. And just like my last visit, the TV was showing Monsters vs. Aliens in 2D, again sans 3D glasses.

A possible fifth demo at the end of one of the aisles used to feature Panasonic’s 50VT20 plasma, but it had been taken down. This was the only demo that had any working 3D glasses a few months back.

So, what was all the  buzz about at BB this time? Why, Sony Internet TV, of course!

If you think TV remotes are complicated, wait until you try THIS keyboard!

Yep, it’s time to get out on the Internet and dig for content, using Google’s search engine and Sony’s incredibly small and dense keyboard. I didn’t see a single person attempt to use it during my 30 minute visit to the store.

In addition to Sony’s support for Google TV, Logitech has a new set-top box you can connect to the Ethernet port on your existing TV – or to the HDMI input.

Sony also showed a new “Internet TV Blu-ray Disc Player” that incorporates the Google interface. It’s the silvery box in the lower middle part of the photo, and encourages you to “take advantage of Full HD 1080p Blu-ray Disc Capabilities.” (???) No mention of 3D anywhere in the exhibit, so there may be a ‘separation of church and state’ thing going on as far as Sony is concerned.

Oh, and that inexpensive upscaling DVD player? I wound up going down the street to 6th Avenue Electronics and scoring a Panasonic DVD-S58PP-K with HDMI output and CEC for $50. Can’t beat that with a stick.

Blu-ray: Those hotcakes must be getting cold

Warner Brothers Entertainment recently expanded its DVD2Blu promotion to include any DVD of any movie or TV program – not just DVD releases of Warner titles.

For those readers who are not familiar with the program, DVD2Blu allowed anyone to trade in older WB movie titles on DVD and get a credit towards the purchase of a new Blu-ray version. The upgraded BD would cost about $8, including shipping.

Now, WB has expanded their program and will accept any professionally-produced DVD – movies, TV shows, sports, etc – towards the purchase of a WB Blu-ray movie or WB Television collection, with prices starting as low as $4.95. According to the ad, which is shown below and can be accessed at http://www.dvd2blu.com/ there are over 100 BD titles to choose from. Order more than $35 worth, and WB will throw in free shipping.

For Blu-ray fans, this is quite a promotion. You can send in DVDs you picked up at discount bins, discarded from libraries, or were given for Christmas presents. All you have to do is mail in the disc (not the packaging) and pay the discounted price, plus shipping (except where noted) to get new BDs for your collection.

From here, it seems like a desperate move by WB to thin out a backlog of BD titles that aren’t moving. Earlier this week, I wrote about the latest Digital Entertainment Group report that showed digital distribution of content is zooming ahead of physical distribution. The report also mentioned that tens of millions of BDs have been shipped to retail. Apparently tens of millions of BDs are still sitting at retail, too.

The costs of administering such a mail-in program aren’t cheap, either. All of the DVDs will have be disposed of, and there are the usual associated shipping and handling costs to deal with.

This move by WB is significant because they are one of the largest distributors of packaged media, along with Disney, who has yet to announce any type of redemption or discount program for their BD titles.

I recall a conversation with a Disney executive a few years back at the HPA Technology Retreat. His comment cut to the chase: “If the industry wants Blu-ray to be successful, they should just stop pressing regular DVDs and make Blu-ray the only optical disc format. That would do the trick!”

Of course, at the time, BD players were in the neighborhood of $500 – $700 dollars and largely ignored by the general public, who gravitated towards cheaper upscaling DVD players instead.

Times have changed. Nowadays, BD players can be had for as little as $80, and even 3D models are plummeting in  price – at least one is selling for less than $200, and a couple more are approaching that price point.

Given the slow but steady decline in overall sales of packaged media (DVD, BD, and the few VHS tapes that are still in circulation)  – down 8% this year over last – it’s time for Hollywood to ‘sink or swim’ by committing to the BD format and start making plans for the sunset of RL DVDs. Even Netflix has announced it will exit the DVD distribution business in the next five years and concentrate on its ‘bread-and-butter’ streaming offerings.

Wonder when the next round of BD fire sales will start?

The 3D Fire Sales have Begun

PriceSCAN has just released its latest 3D Blu-ray Player Index, and it’s a doozy.

The 3D BD Player Index is a composite of all models currently at retail, and the average price for those models has dropped by 26% in six months, with a 10.6% drop in just the past week.

PriceSCAN listed Sony’s BDP-S570 as a good example of aggressive discounting. This player, which required a firmware upgrade to support 3D playback, has fallen from a retail price of $250 to $170 since late February.

From my own experience, I was able to score Samsung’s BD-C6900 3D BD player for just $244 plus shipping from Amazon in early September. Its original list price was closer to $400 when unveiled shortly after CES.

These rapid drops in retail prices reflect the low level of enthusiasm for 3D TV that has been evidenced to date. In an earlier post, I referenced an NPD Group study that showed only 11% of respondents in a recent poll had any plans to buy a 3D TV in the near future, citing concerns about technology, cost issues, the lack of content, and the need to wear expensive, proprietary glasses.

Can prices on BD players and TVs drop low enough to overcome the other objections? Probably not, as the lack of content is still a big problem. There needs to be bucketloads of 3D content available to drive sales, and right now, we’re talking about glassfuls.

If you are thinking about taking the dive into 3D, you’d be best off sitting on your hands for a few more weeks. I have a feeling we’re going to see even deeper discounts on BD players and TVs, probably on the order of 30 – 40% by the time January rolls around.

Think I’m nuts? I just Googled retail prices for the BD-C6900, and it’s now down to $214 (plus shipping) at Amazon, Tiger Direct, PC Richard, Vann’s, and ABT.  (Buyer’s remorse alert – I bought one too soon!!)

It’s all in the Way You Spin the Numbers

Ahead of next week’s Blu-Con Blu-ray lovefest in Beverly Hills, the Digital Entertainment Group has just released its latest market analysis numbers for packaged media.

According to the DEG numbers, total consumer spending on packaged media through Q3 2010 came to $12.6B, a decline Y-Y of about 4%, while consumer transactions for home entertainment products were flat for the year. Digital distribution, which includes electronic sell-through (up 37% Y-Y) and video-on-demand (up 20% Y-Y), accounted for 13.5% of the total, totaling $1.7B.

Other interesting tidbits: Blu-ray saw its sell-through increase by 80% Y-Y to $1B. I’m not really sure what that number means, because overall packaged media (Blu-ray and conventional DVDs of movies, etc.) sell-through declined by 8% Y-Y, continued a slow and steady decline that started almost five years ago and has shown no signs of abetting.

The DEG states that Blu-ray hardware sales increased 104% Y-Y, with more than three million “set-top units” sold. According to DEG, this brings the installed base of Blu-ray disc playback devices to 21.2 million units in the USA.

Note that a “Blu-ray disc playback unit” obviously includes Sony PlayStation III consoles, but there’s no reliable way to tell how many of those are being used to watch Blu-ray movies.

Conventional packaged media is clearly in decline. Rentrak numbers show that spending on DVD and BD rentals was down 4.4% Y-Y to a total of $4.4B. That number would be a lot worse if not for Redbox and other kiosk rental operations, which saw an increase in revenue of 55% Y-Y.

DEG also went on to say that 98 million Blu-ray discs have shipped to retail so far this year, up 57% Y-Y. But that number doesn’t tell us anything about how many of them have actually sold. (It’s like the early days of DTV, when manufacturers quoted the numbers of TVs shipped to retail, and not the actual sales numbers.)

A few things can be divined from these numbers. First, as I just mentioned, the decline in packaged media sales shows no sign of slowing down, and the Blu-ray format is doing little to stem the tide. That’s been the case ever since the BD – HD DVD format wars were declared over, nearly three years ago.

Secondly, Hollywood may have some major bones to pick with Netflix’ and Redbox’ business models, but it’s these same two companies that are saving the studio’s chestnuts right now.  (Forget Blockbuster; they’re preoccupied with Chapter 11 bankruptcy proceedings and arranging temporary ‘debtor-in-possession’ financing just to keep their doors open.)

Finally, electronic sell-through is gaining momentum, even faster than video-on-demand. Customers like the idea of consuming entertainment at home through a high-speed broadband connection, feeding some sort of DVR or streaming in real time at lower resolution. They really don’t care whether they have a physical copy of the movie on a disc, as long as they can get it off a server someplace.

Home theater fans will argue that last point with me, but they’re automatically disqualified from the argument because they constitute a niche and a relatively small percentage of the population – a percentage that studios could never make a sustained living from.

No, the average viewer at home doesn’t care about squirreling away DVDs or BDs and hunting for them on movie night. And that’s been pretty clearly reflected in packaged media rental and sales trends for almost half a decade.

It’s all in how you spin the numbers.