AfterDawn: Tech news

Blu-ray player, HDTV sales to underperform, says Sony

Written by Andre Yoskowitz @ 21 Nov 2008 5:48 User comments (13)

Blu-ray player, HDTV sales to underperform, says Sony Stan Glasgow, president and chief operating officer of Sony Electronics America has said that the company believes sales of standalone Blu-ray (excluding the PS3) players will fall just short of expectations and the company will not meet its worldwide sales goal, due mainly to the global economic downturn.
Glasgow also pointed out the obvious when he said that Blu-ray movies were expensive and when they become more affordable, the standard should see a significant boost in interest.

The BDA and Sony had set a sales target of five million standalone players worldwide by the end of 2008 but Glasgow believes the year will end with only 4.5 million devices sold.

“It’s not that far off of it. Maybe 10% off of what we had thought. It’s truly one of the items that has performed well during this economic mess,”
added Glasgow.



When talking about the prices of the discs, he added, “They (movie studios) need to make money, and the packaged media (discs) is a critical way for them to make money so I understand their problems also. But I’d love to see those prices come down, as well as the price of Blu-ray players, to drive adoption.”

Glasgow also importantly added that sales would slump just like everything else in the world would, thanks to the worldwide economic recession.

“We expected the TV industry to just skyrocket this holiday season. It’s going to grow, but its not skyrocketing. There are less consumers willing to spend money. I believe 80% of that is just consumer confidence. They don't feel as comfortable making a major investment in a television.”

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13 user comments

121.11.2008 19:16

.

This message has been edited since its posting. Latest edit was made on 22 May 2020 @ 8:35

221.11.2008 19:32

"I believe 80% of that is just consumer confidence. They don't feel as comfortable making a major investment in a television.”

Bullshit. People dont want to shell out money bc theyre too expensive. Has nothing to do about "confidence". When Blu-Ray discs are 40 bucks each, people stop and think about whether its worth it to double dip.

321.11.2008 20:38

Originally posted by windsong:
When Blu-Ray discs are 40 bucks each, people stop and think about whether its worth it to double dip.
who in their right mind pays $ 40 for a blu ray disc when you can pick them up from amazon for between $ 15-20 ?

421.11.2008 21:37

They really think the players will fail when Walmart is going to have one for sale on Black Friday for $128.00 and some movies for $15 on Blu-ray.

Heck even Best Buy is going to have some Blu-ray movies for really cheap.

521.11.2008 21:48
Globe08
Inactive

Quote:
Originally posted by windsong:
When Blu-Ray discs are 40 bucks each, people stop and think about whether its worth it to double dip.
who in their right mind pays $ 40 for a blu ray disc when you can pick them up from amazon for between $ 15-20 ?
The average consumer doesnt make a large percentage of their purchases online they make them in retail chains. so many people see that the average blu-ray movie is around 32 bucks and that turns them away. not too mention the wary fact of technology not lasting as long as it once did. People arent sure if blu-ray will be a stable format
This message has been edited since its posting. Latest edit was made on 21 Nov 2008 @ 9:52

622.11.2008 02:53

From my own experience, Being a low paid retail slave. I've worked at Borders Bookstore for a couple years and I can tell you how it was here.
When average consumers saw the Movie shelves a year or so ago, they saw an Equal Amount of HD-DVD movies, and BD in the section. My father, My uncle, and one of my cousins bought into the HD-DVD players, and loved the quality. And so did some consumers that frequent the borders I worked at.

After the format war, all the movies in HD-DVD were gone (Borders sent them back for store credit). Lots of customers came in a couple weeks later, and were asking in desperation "WHAT THE HELL? WHERE'D ALL THE MOVIES GO?"

Since not a lot of employees knew, (sheesh most of the employees don't even read at all! HA) Had no Idea why. Typically went like: "hey Boss? Where did all the movies in the Red case go?" Boss: "OH WE SENT THEM ALL BACK" So the customer is standing there confused and upset...I stepped in and told him why. You could see in his face the anger at spending all the money on a player and a few movies, and suddenly told you bought into the whole thing too soon.

A couple months ago I see him again, hes looking for a few movies as gifts. I asked him if he wanted something from the Blu-ray section (the section is locked, and customer was looking at it)
He replies: "Naw.... until they drop into the 15 dollar and below range, I'm not going to even bother....I already learned from the last time."

Now I'm not an expert here, but I'm hearing alot of customers with either the same story (buying the wrong player or knowing someone who has) or they feel DVDs are such a good buy right now that for the price of a BLUE RAY disc they can get 3 movies at discount prices.

Another instance went something like this between a couple. Man says: Hey jenny doesn't brad have the player that plays those high quality movies?
Jenny: Honey you mean the Blue ray movies?
Man: Uh I dunno aren't there more than one type? I thought there was more.
Jenny: oh yeah I'm not sure.... well lets just get the movies he wants In dvd it's alot cheaper any way.
Man: yeah your right.

So here we have consumers, who really don't have time to figure this all out, some haven't bought movies in a while. Some refuse to buy them because of their price. One man told me: "Untl I can buy a pack of blank discs for my computer to store them on for 19.99, and play them on my computer by default, then I'll pass. Plus the Players are a little too expensive, I think I'll wait until they are around 100 or less."

So I think it's a combination of both perhaps. (from my experience) Price, and consumer backlash from the format war.
This is rarely mentioned, but I hear it all the time on how it's their reason for waiting. I can understand the "betrayal" feeling on this issue, because

#1 Consumers don't have alot to compare a format choice with. For instance, when you buy a new computer, no one worries about weather they have to choose between windows, or another....and then get stuck with it.

-No one buys a car, and then suddenly is told, "hey you bought the wrong model, you can't drive it on the street, it's not compatible!"

-Consumers DO understand formats though, like cameras. But we can compare the "player" to a multi reader card. The multi reader takes all of them, so no loss for the camera owner"
Or Game systems with numerous different packaging styles, and usually a system close by. As long as you have the system you can play it. (but this different format concept in game systems has always been there since the original NES and Sega, and typically a system had a bit longer of a life than a losing format for a whole medium)

-But with things like movies, people Expect a movie to be a move, like a music cd to be a music cd. It's should just play.

Knowing there was a format war going on, I didn't even think twice. I wasn't going to get one. I tend to agree with the guy who had the price issues. Until they are the price of DVD now....there is no way I"m buying into it.

Quote:
When talking about the prices of the discs, he added, “They (movie studios) need to make money, and the packaged media (discs) is a critical way for them to make money so I understand their problems also. But I’d love to see those prices come down, as well as the price of Blu-ray players, to drive adoption.”

Common now people! You really think the packaging is THAT much more expensive than a dvd? Wow! it must be some expensive shrink wrap and Plastic! Because we all know the disc costs to be made, less than a dollar! So this quote is from some one who doesn't understand that, new technology is always expensive at first. Ha sony could lower Blue ray discs to current DVD prices and still make a profit.

The whole point is, average consumers won't know what users of this site do. They don't look at tech news all the time. They just want it to work. And if the price isn't in their favor, they will keep away from it.

PERIOD

722.11.2008 08:26
blueroad
Inactive

Shegax,

your absolutely right i agreed with everything you said.
see,i live in israel and here tech news hardly make the evening news so no one ever knows whats going on and people buy what their friends told them to or what the seller tells them is best. i dont see it yet with blu-ray in here because frankly if you think prices are high in america double them up,add importing costs and u get a monsterous price.

i see what you talked about especially in HDTVs people going no! dont buy plasma TVs its a dead format and the other is going no dont buy LCD it will last you 5 years. really its like 2 monkeys arguing about the order of the alphabets when they know 4 letters.
im 17 and i read in this site daily so im always up to date with all the news and my parents are being talked into buying a not-so-hot LCD 50 inch by my idiotic brother in law and despite me telling them to hold cause i read of a few new great models that are coming out to hit israel (like 4 months) they will not listen. why? cause they'd rather listen to a rich grown man who doesnt know shyt about tech than theyre own son which is yet too young to have an affecting opinion.

and as for me i intend to buy a recording DVD soon but i told myself hold it wudnt it be better to wait for bluray? and the anwser came as fast as the question: HECK NO by the time bluray will penetrate the market here it would be even more expensive cause people will be talked into it by adds and what not. and add a few years more till prices come down and all this under the assumption that bluray will survive that long and hope that by the time you buy it ,it would still be worth it, the way technology is advancing now a days..

sometimes im glad tech here is advancing slowly..but then i hate it that the awareness is so low..

822.11.2008 08:29

Originally posted by Shegax:
I've worked at Borders Bookstore...

...if the price isn't in their favor, they will keep away from it.

There's the problem right there.

At Border's anything that's on a disc is way overpriced.

I wanted to get a classical music CD for my dad's birthday and a single disc title that he wanted was $20 and it wasn't even an SACD hybrid.

Most DVD's and BluRay movies are sold at or even over MSRP. Most BD titles are usually $30 to $40. Don't get me started about the boxed sets. I don;t shop there unless I have a 20% discount coupon (for 1 single item) in my hand.

I think people are smarter than what we give them credit for. When B&M stores charge them an arm and a leg for something they want then they look elsewhere.

Oh and as a reply to the thread title - it's a "duh" moment: due to the current economic downturn everything will underperform this holiday season.

Retail Execs Expect Slim Gains On Black Friday

922.11.2008 23:53

Originally posted by def&blind:
Until it competes directly with DVD on cost, the only real advantage is picture quality. While it may be better, it's not worth a 40-60% premium. I will pass this Christmas.
I am in total agreeance. I feel it has to become totally cost effective for me both for the player and the discs and then i will startto transfer my movie viewing to vlu-ray.

Still too way early...

1023.11.2008 01:17

-Honey, I decided not to pay the mortgage and take those several hundreds of dollars and get a Blue Ray player and some Discs. What do you think?

-Fantastic darling!

It's still way too EXPENSIVE!!!! Get real. It's not the time for luxury crap. Save your money. You might need it later. We are living tough times.

1123.11.2008 04:54

@Shegax

Well Spoken !

1224.11.2008 12:32
emugamer
Inactive

I totally agree with Shegax. The average person doesn't know or care about the specs. They just want it to work. I can talk to my parents until I am blue in the face, but in the end, it goes in one ear and out the other.

I was so close to pulling the trigger on a 46" Samsung HDTV this weekend. But I refrained and decided to not even look at HDTV's until after March. See how it all works out after the 1st quarter. Some of the online deals I've found are great, and they blow away the B&M stores (ie.. Newegg with models $200 cheaper than the equivalent at Best Buy plus the free shipping and no sales tax). But there is very little confidence in buying a television online among the majority. My parents want a 46" HDTV. The one they wanted was $1,800 at Best Buy before tax. I didn't agree with their choice, but I found their model online $1,600 flat just to show them how much they could save from reputable sites. But they still wouldn't go for it. The B&M stores count on this. But the prices are still too high for most in this economy.

1324.11.2008 19:15

Originally posted by emugamer:
I totally agree with Shegax. The average person doesn't know or care about the specs. They just want it to work. I can talk to my parents until I am blue in the face, but in the end, it goes in one ear and out the other.

I was so close to pulling the trigger on a 46" Samsung HDTV this weekend. But I refrained and decided to not even look at HDTV's until after March. See how it all works out after the 1st quarter. Some of the online deals I've found are great, and they blow away the B&M stores (ie.. Newegg with models $200 cheaper than the equivalent at Best Buy plus the free shipping and no sales tax). But there is very little confidence in buying a television online among the majority. My parents want a 46" HDTV. The one they wanted was $1,800 at Best Buy before tax. I didn't agree with their choice, but I found their model online $1,600 flat just to show them how much they could save from reputable sites. But they still wouldn't go for it. The B&M stores count on this. But the prices are still too high for most in this economy.


So true !

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