Dual-format high-def player in more stores

LG Electronics' Blu-ray/HD DVD set-top to expand presence in June

By Susanne Ault -- Video Business, 5/9/2007

MAY 9 | LG Electronics is rolling its combo Blu-ray Disc/HD DVD player into Best Buy and Circuit City stores nationwide, following a more limited offering in those chains.

Starting in June, LG will ship the market’s first dual-format high-definition player across Best Buy’s 800-plus network of U.S. stores. At the same time, the Super Multi Blu HD player will spread to significantly more Circuit City outlets.

In January, “we started at Circuit City and Best Buy, and then we branched out to selected regional dealers in March,” said John Taylor, VP of public affairs and communication at LG Electronics USA. “We’re building up production now. The consumer reaction is terrific and sell-through is strong. Things will be really widespread in June.”

Earlier this year, the player could be found in several hundred Best Buy and Circuit City stores. Elsewhere, LG player supply has been limited. On Wednesday, Amazon.com listed two units for sale from third parties.

Taylor declined to specify current or projected shipment figures. Toshiba’s HD DVD players are considered the best-selling stand-alone high-def players on the market, recently surpassing 100,000 units sold.

At the time of LG’s combo player launch, some HD DVD backers were critical of the model’s lack of Web connectivity and inability to fully handle HD DVD interactivity. Additionally, the Super Multi Blu HD is priced relatively steeply at $1,199.

Sales going well

However, Taylor said LG is more than pleased with sales at this point.

“It is a relatively high-price product, but it has not been an impediment,” said Taylor. “We think it’s a good value. … Finally, there is a product on the market that declares peace in the format war. We think this reduces consumer hesitancy to jump into the market.”

Taylor added that there are no announcements yet regarding a second-generation Super Multi Blu HD that might beef up its HD DVD capabilities.

“Our research has shown that the main reason why people buy is not for interactive features but to kick back and enjoy a movie in its full-definition glory,” Taylor said.

'Innovative thinking'

Retailers realize it’s not a perfect high-def solution but seem happy to offer the high-def player to consumers.

“Our position is that it’s good and innovative thinking, and for people who are eager to get into the next-generation space, it’s a good solution,” Best Buy spokesman Brian Lucas said. “It will help people on the edge [or already interested in high-def] get in on the game now. It won’t help mainstream people get in yet.”

Lucas added that Best Buy is still eager to sell high-def as one format, believing that standardization is the only true solution to creating a vibrant high-def business.

Hoping to drive high-def adoption, Toshiba has recently slashed the prices of its HD DVD players.

But Lucas noted that high-def players overall are not yet popping as a hot new product.

“It’s not a big enough category to really see any trends,” he said. “Price is part of the decision. But confusion is still the biggest barrier.”