Blu-ray awareness rising among consumers
NPD survey finds price still a holdback to purchase
By Susanne Ault -- Video Business, 6/3/2008
JUNE 3 | Consumers have become more aware of Blu-ray Disc in the past year, but they are still stopping short of craving the new format, according to a NPD survey.
In NPD’s “2008 Blu-ray Disc Report,” 45% of HDTV owners in the U.S. say they are familiar with the format. That represents a jump from the 35% who said the same during NPD’s similar survey in June 2007. However, just 6% of all respondents said they planned to purchase a Blu-ray device in the next six months.
NPD did see hope in the format gaining steam, as a slightly higher 9% of HDTV owners said they wanted to buy Blu-ray players. This group represents the demographic that can best maximize the Blu-ray experience as they already own the TV hardware.
“With HDTVs now in almost 4 million U.S. households, that [9%] translates to a pool of almost 4 million potential Blu-ray player buyers,” said Russ Crupnick, NPD entertainment industry analyst.
NPD did not specify purchase intent comparisons for the same time last year, as they did not ask those questions at that time.
Current obstacles to mass adoption are the perceived relative high cost of Blu-ray players and overall satisfaction of standard DVD players, according to NPD’s survey.
Yet NPD found that once Blu-ray players are purchased, consumers show a clear preference for the format. Among Blu-ray set-top owners, 80% of their upcoming title purchases will be Blu-ray rather than standard DVD. Among PlayStation 3 owners, 43% use their consoles’ built-in Blu-ray players at least once a month and watch Blu-ray movies less than set-top owners.
Sony Computer Entertainment America similarly has found high interest for BD with purchases of the PS3 console. In a May survey, 52% of PS3 respondents said they would be buying six or more BD titles in the next 12 months. About 50% said they prefer to exclusively purchase or rent movies in the BD format, even if they have to wait longer for the title’s release. Additionally, 40% of respondents say that their movie viewing has spiked since purchasing the PS3.
Consumers say they bought their Blu-ray set-tops because it represented “leading-edge technology” and a “superior viewing experience,” according to the NPD report.
“The door is open for studios to feed consumers’ appetite for Blu-ray content, and we expect sales to increase, as prices for hardware and software moderate in the coming months,” said Crupnick. “Even so, it will take a concerted effort by manufacturers and retailers to ratchet awareness even further and convince all of those potential buyers of the superiority of Blu-ray Disc versus standard DVD.”
Through May 18, Blu-ray software sales have exceed the 11 million units mark, according to the Redhill Group. BD software sales during the first four months of 2008 are more than 4.5 times the amount sold during the same time in 2007.
