BD Live set-tops make summer debut

Manufacturer campaigns promote Web capabilities

By Susanne Ault -- Video Business, 7/11/2008

JULY 11 | The first BD Live Blu-ray Disc set-top players are finally starting to hit shelves, but their next challenge is trying to convince consumers and retailers of their Web interactivity value.

Sony’s PlayStation 3 videogame console poses a hurdle for the new set-tops, many of which were announced by Panasonic, Samsung and Sony at January’s Consumer Electronics Show. The PS3 boasts both a gaming system and BD Live-capable Blu-ray player for $399, undercutting the $699 price of Panasonic’s straight BD Live player, the DMP-BD50. Panasonic’s latest model started shipping a few weeks ago and is now available at such retailers as Best Buy and Crutchfield.

Samsung’s BD-P1500 is priced at $399, but this model is only BD Live-ready, meaning it lacks Web interactivity abilities until a planned fall firmware upgrade. Similarly tagged BD Live-ready is Sony’s $399 BDP-S350, which retailers expect will start shipping as soon as this month. It’s not yet clear when this model’s BD Live firmware upgrade will be available.

Panasonic and Samsung management say they are confident they can compete with the PS3 by targeting broad home entertainment consumers over hard-core gamers. Panasonic’s ‘Living in High-Definition’ truck, which was launched last year to support the company’s entire high-definition product suite, will make consumer pit stops throughout 2008. Destinations include such August events as Chicago Cubs and Detroit Tigers baseball games and NASCAR racing in California. The truck also is scheduled to land in Pasadena, Calif., near the time of the city’s Tournament of Roses New Year’s Day parade.

“The demographic for the PlayStation 3 versus the set-top tends to be different, where set-tops [skew] older and to families” said Tony Jasionowski, group manager at Panasonic. “The ‘Living in High-Definition’ truck focuses on family time entertainment. We will be oriented toward that demographic, and we’ll specifically be promoting BD Live.”

Samsung bowed in June an educational Blu-ray Web site, which includes information on its BD-P1500 model and BD Live technology.

As far as any threat the PS3 may pose, Samsung VP of marketing Reid Sullivan said, “The research we’ve seen indicates that the majority of consumers who are looking to add high-definition to their main TV prefer the functionality and look of a component-based form factor” in contrast to a game console attachment.

In further marketing, Panasonic is driving its ‘Living in High-Definition’ truck to several major retailers. In June, the truck worked to win over attendees of Wal-Mart’s shareholders meeting in Arkansas. Best Buy and Ultimate Electronics will be granted visits in August and October, respectively.

In partnership with Walt Disney Studios Home Entertainment, Panasonic has been chatting up the DMP-BD50 through a consumer/retail demo tour of the upcoming Blu-ray release of Sleeping Beauty. Disney hopes its first BD Live title, which streets Oct. 7, will push the format and Web interactivity into mainstream family acceptance.

This month, Panasonic met with Best Buy and Target executives in Minneapolis for Sleeping Beauty demos using Panasonic’s DMP-BD50 hardware. Sleeping Beauty demos also were held in Los Angeles, Washington D.C. and New York.

Samsung plans to collaborate with retailers in offering like-branded TV/Blu-ray player deals. Last year, many customers were able to score free Blu-ray players and/or significant savings when buying both a HDTV and Blu-ray set-top.

“Since we are No. 1 in high-def TV sales, it is logical for us to take advantage of this strength and promote/bundle with our TVs,” said Sullivan.

After suffering through severe product shortages through much of this year, retailers say they are largely grateful for the arrival of the set-tops. Store managers believe consumers will be attracted to the products, regardless of competition from the PS3.

“We had been out of Samsung’s [earlier model] BD-P1400 for several months, and our sales went up significantly when we got the BD-P1500 in stock,” said Rick Souder, Crutchfield’s executive VP of merchandise. “We also have back orders for some of the products that aren’t out yet, including Sony. Our overall view is demand continues to exceed supply.”