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Revenue sharing helps Blu-ray gain better rental presence

30 September 2007 10:38 by Rich "vurbal" Fiscus | 15 comments

At least one Sony strategy to promote Blu-ray discs seems to be paying off. As we reported in July, Sony introduced a revenue sharing plan to lower the price of entry into the Blu-ray rental market. Although the move does seem to be at odds with statements from Sony and other Blu-ray backers that the format war is already over, it does seem to be making at least a small impact.

Hastings Entertainment, a regional retail chain based in Amarillo, Texas that already offered video rentals in addition to CD, video, and book sales, has expanded their selection of Blu-ray discs available for rent. According to video category manager Mason Goodfellow, the move is a direct result of the revenue sharing program.

�It basically helped us to spread [Blu-ray] to all of our stores and not have to make that much of a financial investment,� said Mason Goodfellow, Hastings video category manager. �We might be able to get in as many as eight to 10 copies per Title [in one store]. Without revenue-sharing, that might have been three to four copies.�

Although the format war is certainly far from over, it's more than a little curious that HD DVD backers have been relatively silent when it comes to promotions. Blu-ray promotions, primarily from Sony but also from companies like Matsushita and Disney have been abundant. HD DVD promotions, on the other hand, have primarily been related to Microsoft's Xbox 360 HD DVD add-on, although Toshiba, HD DVD's biggest supporter among standalone player manufacturers, has been a leader in pricing, with their HD DVD players consistently the cheapest for hi-def formats. Still, the amount of PR and promotion for Blu-ray seems to dwarf the efforts made on behalf of HD DVD. This may indicate confidence, or may simply be a sign that Toshiba and Microsoft are holding off on expensive promotions until there's enough market share available to actually make the product profitable.

Sony, of course, has made a big deal of the move. �Naturally, SPHE is delighted about this since Hastings obviously acknowledges the fact that consumers have voted for Blu-ray as the high-definition format of the future,� said Marshall Forster, Sony senior executive VP of North America.

However, as usual for both sides in the format war, this is clearly not the case. If the decision had been made by consumers there would be no need for financial incentives to put DVDs on rental store shelves.

Source: Video Business

Permalink to this article

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New Shrek HD DVD to include never-before-seen features (30 September 2007)

Sony sharing revenues to promote Blu-ray rentals (18 July 2007)

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vinny13 (Inactive) 30 September 2007 10:52
That's nice... Anyways about Microsoft promoting HD-DVD with the 360, they must be doing a crappy job because my friend bought a 360 and then he wanted a hi-def. DVD player, so he bought a Blu-Ray player. I asked him why and he said just because it's more popular, even though it's more expensive. If the 360 came with HD-DVD built in, it would probably be doing much better then Blu-Ray. It would also benifit the games because they're bigger then DVD-9s. The cost of the system would be higher, but since it had a years advantage, it would probably be in the same general area of consoles sold today... [ + quote]
loxley32 (Junior Member) 30 September 2007 11:11
It has nothing to do with a corporation doing a "crappy" job. If your friend bought anything based on what he thought was "more popular" then he is an idiot. People should do the research and then spend their money. [ + quote]
bobino (Newbie) 30 September 2007 11:36
unfortunately not everyone is like you and takes their time when making big purchaes loxley. although his friend may be "stupid", if all consumers made the same decisions based on whats popular or what product gets more exposure, then sony is doing a good job of promoting their product, though it doesnt mean their product is superior. [ + quote]
mspurloc (Member) 30 September 2007 11:43
Neither is more popular, anyway. The numbers are as jacked up the ones for piracy. Blu-Ray's just got a better and more memorable name. HD-DVD's not a name. It's a field of technology. If you see one car that's called a Cougar X20 and the other is named "Car," which one are you going to remember? [ + quote] This message has been edited since posting. Last time this message was edited on 30 September 2007 11:46
mspurloc (Member) 30 September 2007 11:44
*Originally posted by mspurloc:* "Hey, Abbot! I bought an HD DVD Player last night." "What kind?" "HD." "Yeah, but which format?" "HD! It's a high definition DVD player!" "Yes, but which format?" Very bad design choice. [ + quote] This message has been edited since posting. Last time this message was edited on 30 September 2007 11:47
mododaz (Junior Member) 30 September 2007 11:50
i bought my hd dvd player with a built in sd and usb 2.0 slot it only cost me 50 euro [ + quote]
glasssd (Newbie) 30 September 2007 11:50
Vinny, sounds like your friend did good with out having to do any reserch. Your corect about MS. If they beleaved in HD DVD, they would have included it in the 360. [ + quote]
shadowd7 (Newbie) 30 September 2007 13:57
Microsoft has the HD-DVD w/ 30 GB of space(15 on ea. side) Sony has the Blu=ray DVD w/ 50 GB of space(25 on ea. side) Microsoft uses HD-DVD on X360 Sony uses Blu-ray on PS3 its just a war between the 2 formats, theres always been wars between formats, DVD+R & DVD-R.... Its just a matter of who wins the market, I believe Sony's Blu-ray will be better, only because of the bigger discs... I mean its a whole 20 GIGs difference.... [ + quote]
saltynuts (Inactive) 30 September 2007 17:03
I still say 50gig is a bit much at this time in space.but some people get thier rocks off of specs.i mean really for a movie 50gigs come on guys are you shitting me maybe for a game and just maybe.dvd9 i dont see the need to rush it away just yet as the price is very right.and if a game has to go multi disk iam cool with that my hands work pretty good i can change the disk.no problem there maybe on the next gen of console new disk formate but for now dvd9 may still work.i could be wrong [ + quote]
24Lover (Inactive) 30 September 2007 17:40
*Originally posted by saltynuts:* I still say 50gig is a bit much at this time in space.but some people get thier rocks off of specs.i mean really for a movie 50gigs come on guys are you shitting me maybe for a game and just maybe.dvd9 i dont see the need to rush it away just yet as the price is very right.and if a game has to go multi disk iam cool with that my hands work pretty good i can change the disk.no problem there maybe on the next gen of console new disk formate but for now dvd9 may still work.i could be wrong With multi-disc games comes a extra price,on top of that why are 360 owners paying the same price for game as PS3 owners? DVD-9 is cheaper right ? so what is this extra cost MS charging for? [ + quote]
saltynuts (Inactive) 30 September 2007 17:44
*Originally posted by 24Lover:* *Originally posted by saltynuts:* I still say 50gig is a bit much at this time in space.but some people get thier rocks off of specs.i mean really for a movie 50gigs come on guys are you shitting me maybe for a game and just maybe.dvd9 i dont see the need to rush it away just yet as the price is very right.and if a game has to go multi disk iam cool with that my hands work pretty good i can change the disk.no problem there maybe on the next gen of console new disk formate but for now dvd9 may still work.i could be wrong With multi-disc games comes a extra price,on top of that why are 360 owners paying the same price for game as PS3 owners? DVD-9 is cheaper right ? so what is this extra cost MS charging for? you make a very valid point.M$ is a greedy p.o.s [ + quote]
26r0cK (Inactive) 30 September 2007 19:01
M$ does that cuz in their words "we just can." ..and they clearly kno that ppl will fall for it and buy it. Like regardless of the xbox360 33% red light of death rate, they still manage to sell tons. And no offence, I see nuthing next-gen with the xbox360 thats even worth the price its going for in stores. [ + quote]
saltynuts (Inactive) 30 September 2007 20:30
*Originally posted by 26r0cK:* M$ does that cuz in their words "we just can." ..and they clearly kno that ppl will fall for it and buy it. Like regardless of the xbox360 33% red light of death rate, they still manage to sell tons. And no offence, I see nuthing next-gen with the xbox360 thats even worth the price its going for in stores. First let me say this iam not a fanboy but i do own a 360 and enjoy the hell out of it.to say there is nothing next-gen about is crazy.why because it does not pack a blu-ray drive that would have shot the price out of the reach of tons of gamers.and a web browser nice touch but come on.the ps3 has some great tech but the 360 got what alot of people want in a gaming rig for GAMES.anything eles is a plus.but dont get me wrong this is not a ps3 bash as i own ps3 and a wii.its just that 360 got the goods FOR NOW. [ + quote]
xrams (Inactive) 30 September 2007 22:13
*Originally posted by mspurloc:* Neither is more popular, anyway. The numbers are as jacked up the ones for piracy. Blu-Ray's just got a better and more memorable name. HD-DVD's not a name. It's a field of technology. If you see one car that's called a Cougar X20 and the other is named "Car," which one are you going to remember? this is an excellent point.. the HD-DVD name still has the suffix (DVD) in it.... the name "Blu-Ray" brings you into the next gen of tech.... Not to say this is why I back blu-Ray... b/c I do own a PS3... but to the average buyer, the name Blu-Ray does sound more advanced.... [ + quote] This message has been edited since posting. Last time this message was edited on 30 September 2007 22:14
borhan9 (AfterDawn Addict) 1 October 2007 5:17
This is just a continuation of the article before of course its growing its new technology and consumers always want better and better products at a cost effective price. [ + quote]