Pioneer increases shipment of newest Blu-ray Disc player

By Susanne Ault -- Video Business, 6/20/2007

JUNE 20 | Although several hundred dollars more than most second-generation models, Pioneer is confident consumers will be attracted to its $999 Blu-ray Disc player, shipping several times more than its initial offering.

Pioneer’s BDP-94 HD, which just started arriving at electronics specialists, is less expensive than the manufacturer's first $1,500 Blu-ray player. The second-generation model is slightly tweaked from the original, as it comes loaded with CD playback and supports audio technologies Dolby True HD and Dolby Digital Plus.

Pioneer is narrowly targeting the player to Ken Cranes, Magnolia Home Theater and Paul’s TV, among other small high-end chains, so as not to compete with cheaper available players. Sony is now shipping a $499 model, a second incarnation of its $999 player launched last year. Panasonic is backing a $599 model, down more than 50% from its $1,300 first-generation model.

“There’s a fairly significant population of high-end users, who are more performance-driven than cost-driven,” said Andy Parsons, senior VP of advanced product development at Pioneer. “We have an elite brand identity. People are familiar with our elite plasma TVs, and it’s among the best for picture quality. That resonates with the high-end market.”

Parsons said Pioneer decided to ship more of its new $999 players based on strong sales of its original $1,500 model.

“We could have sold twice as many first-generation players than we ended up making,” said Parsons. “The demand was bigger [than Pioneer could produce].”