Target stores to stock only Blu-ray set-top players

Chain says software from both formats will still be available

By Susanne Ault -- Video Business, 7/26/2007

JULY 26 | Starting in October, Target will sell Sony’s $499 Blu-ray Disc player as its exclusive high-definition set-top player offering.

Target will stock Sony’s BDP-S300 player at least through the holidays. It will not carry set-top HD DVD players in stores, although it will continue to stock the Xbox 360 HD DVD drive and software for both formats.

Toshiba’s HD DVD stand-alone players are still being sold through Target’s Web site.

In terms of software, Target stores will continue to carry HD DVD movies, but are expected to give greater emphasis to Blu-ray titles through extensive signage and software selection around player displays. Target already offers Sony’s Blu-ray-enabled PlayStation 3.

Sony executives expect the company’s endcaps at Target will feature the player, titles from a variety of Blu-ray-backing studios and marketing messages promoting the consumer benefits of Blu-ray.

"Target already has a strong market share for Blu-ray, where they are among our Top 5 markets," said David Bishop, Sony Pictures Home Entertainment president. "I think this will accelerate their position in the marketplace. This is going to mean more dedicated shelf space to Blu-ray titles. This will start to build the next phase of the business."

“Target’s decision to add Sony’s Blu-ray Disc player to the shelf, in addition to the PlayStation 3 videogame system, illustrates how this leading retailer is in tune with American consumers who are interested in the latest high-definition technologies,” said Randy Waynick, senior VP of Sony’s home products division.

In a statement, Target officials said: "We are not proclaiming one format vs. the other as the preferred consumer technology, and software will continue to be available to our guests in both the Blu-Ray and HD DVD format. We are simply merchandising Blu-ray hardware as the initial foray into this exciting category. As with all of our merchandise, we will track guest feedback and adjust as necessary."

Industry sources said the chain wanted to underscore high-definition products in its stores only if they could present the items in a way that wasn’t confusing to consumers. Target chose to represent high-def DVD with Blu-ray, the sources said, because more studios and manufacturers exclusively support the format than rival HD DVD.

The chain’s decision to stock Blu-ray players only in stores follows Blockbuster’s recent decision to slot only Blu-ray titles in many of its bricks-and-mortar locations.