Home Media Magazine - Hollywood Goes High-Def - December 2008 - (Page hghd8) fifth-quarter frenzy «WE ARE REALLY PRETTY OPTIMISTIC AS PRICES COME DOWN ON BLURAY PLAYERS REPLACING DVD PLAYERS.» REED HASTINGS, CEO, NETFLIX «IT’S THE DIFFERENCE BETWEEN COSTUME JEWELRY AND A DIAMOND.» LORI MACPHERSON, GM, NORTH AMERICA, WALT DISNEY HOME ENTERTAINMENT, ON UPCONVERTING DVD PLAYERS VERSUS BLU-RAY PLAYERS «WE BELIEVE WALMART IS INCREASING ITS EXPOSURE TO CONSUMER ELECTRONICS, VIDEO GAMES AND BLU-RAY.» RICHARD GREENFIELD, ANALYST, PALI RESEARCH » Continued from page 4 players, according to eyewitness accounts. At several bankrupt Circuit City stores earmarked for closure in Orange County, selections of BD players were limited to a handful of display units only. Best Buy said in-store promotions for both hardware and software, coupled with creative financing options brought on by the economy, continued to generate consumer buzz for Blu-ray. “We have storewide 18-month interest-free financing [on BD players] that we know is a compelling offer in this economy,” said Jill Hamburger, VP of entertainment for Best Buy. “We are also doing our best to showcase the [picture-in-picture] and [7.1] sound benefits of Blu-ray players in stores, including adding an interactive display in our software area for the first time.” Hamburger said Blu-ray movie releases of Iron Man, The Chronicles of Narnia: Prince Caspian and The Dark Knight would continue to create excitement in the category. “In general, we think Blu-ray disc players have reached a price level where they are appealing to mainstream shoppers,” she said. “We have seen customers showing an increased awareness and interest in getting a Blu-ray disc player, both to add to an existing HDTV or with the purchase of a new digital TV.” Strong demand for Blu-ray has affected rental as well. Barry McCarthy, CFO of online DVD rental pioneer Netflix, told an investor group in early December that subscriber requests for Blu-ray had already exceeded the company’s year-end goal of 500,000 members willing to pay an additional $1 per month for BD movies. Parsons said the reliable word-of-mouth effect during winter holiday parties would bring consumers into stores in the “fifth quarter” as neighbors play up their new HDTV and Blu-ray player. (The “fifth quarter” is a term coined during the early days of DVD to describe the software sales bump following the holiday season when consumers with new hardware rush out to buy software.) “I’ve done this myself countless times, and I’m sure I’ve gotten some people pretty excited about Blu-ray,” Parsons said. “Add millions more people like me out there after the holidays, and it’s bound to have a positive effect on subsequent unit sales.” However, Paul Erickson, director of DVD and HD market research at DisplaySearch, said Blu-ray player and software prices need to stay low after the holidays to remain successful. He said first-quarter sales last year were soft despite player price reductions to $299. “Though pricing is lower this year, consumer price sensitivity is higher due to the economy, so Q1 performance is going to be dependent on price and bundling,” Erickson said. “Should $249 to $299 be locked in until mid-year, I think the first quarter will be OK, but strong sales will be dependant on how close to $200 the name brands are willing to stick to after the holiday. With this economy, a return to $299 pricing will put the brakes on the Blu-ray momentum.” «BLU-RAY IS A VERY YOUNG FORMAT, AND THERE IS A VERY REAL OPPORTUNITY ONLINE … NOT TO EDUCATE — THAT’S A VERY PATRONIZING WORD — BUT TO EXPERIENCE.» DIRECTOR GUILLERMO DEL TORO (WHO DID A LIVE COMMENTARY NOV. 23 FOR HELLBOY II) «REDBOX IS TESTING BLURAY DISCS IN A LIMITED NUMBER OF MARKETS NATIONWIDE. WE WILL CONTINUE TO EVALUATE CONSUMER RESPONSE TO THIS OFFERING TO MAKE DECISIONS REGARDING EXPANDING.» GARY LANCINA, VP OF MARKETING, REDBOX 8 HOLLYWOOD goes HIGH-DEF Winter 2008/2009
Table of Contents Feed for the Digital Edition of Home Media Magazine - Hollywood Goes High-Def - December 2008 Fifth-Quarter Frenzy High-Def Data Tables Blu-Ray Disc Listings Home Media Magazine - Hollywood Goes High-Def - December 2008 Home Media Magazine - Hollywood Goes High-Def - December 2008 - (Page hghd1) Home Media Magazine - Hollywood Goes High-Def - December 2008 - (Page hghd2) Home Media Magazine - Hollywood Goes High-Def - December 2008 - (Page hghd3) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Fifth-Quarter Frenzy (Page hghd4) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Fifth-Quarter Frenzy (Page hghd5) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Fifth-Quarter Frenzy (Page hghd6) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Fifth-Quarter Frenzy (Page hghd7) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Fifth-Quarter Frenzy (Page hghd8) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Fifth-Quarter Frenzy (Page hghd9) Home Media Magazine - Hollywood Goes High-Def - December 2008 - High-Def Data Tables (Page hghd10) Home Media Magazine - Hollywood Goes High-Def - December 2008 - High-Def Data Tables (Page hghd11) Home Media Magazine - Hollywood Goes High-Def - December 2008 - High-Def Data Tables (Page hghd12) Home Media Magazine - Hollywood Goes High-Def - December 2008 - High-Def Data Tables (Page hghd13) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Blu-Ray Disc Listings (Page hghd14) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Blu-Ray Disc Listings (Page hghd15) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Blu-Ray Disc Listings (Page hghd16) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Blu-Ray Disc Listings (Page hghd17) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Blu-Ray Disc Listings (Page hghd18) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Blu-Ray Disc Listings (Page hghd19) Home Media Magazine - Hollywood Goes High-Def - December 2008 - Blu-Ray Disc Listings (Page hghd20)
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