Blu-ray Won Battle, But Still Has to Win Over Consumers, Analyst Says

Apr 24, 2008  •  Post A Comment

Consumer ambivalence may be the biggest challenge facing the high-definition DVD player market, according to a new report from ABI Research.
Although Sony’s Blu-ray format has emerged as the victor in HD video technology race, ABI analysts said many people are not “fundamentally dissatisfied” enough with the quality delivered by the conventional players and HD-functional technology they already own.
Principal analyst Steve Wilson said, “We are starting to see an increase in the number of DVD players with built-in upconverters, and the video processing is getting better with each new generation. Today about 35% of all DVD players sold include upconversion” to play on HD televisions, and ABI expects to climb to about 60% by 2013.
The report added there’s not much hope for an upturn in the Blu-ray player market when the base of current Blu-ray users is heavily tilted toward users of Sony’s PlayStation 3, which comes with the feature built in.
According to ABI’s findings, about 85% of the Blu-ray players in the market are found in PS3s, causing analysts to suggest the dedicated types of Blu-ray players won’t catch up in terms of market share for another five years or so.
While optical disc and PC manufacturers are offering Blu-ray add-ons at low prices, dedicated players are sticking to a higher price point, which ABI thinks may suggest that studios overestimated the impact of Blu-ray’s cornering the market, as well as general consumer interest in a dedicated player.

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