Blu-ray player sales up 72% in Q1

PHYSICAL: Consumer awareness of format hits 90% mark in past six months

By Susanne Ault -- Video Business, 5/6/2009

MAY 6 | PHYSICAL: Consumers bought more than 400,000 Blu-ray Disc set-tops in the first quarter, marking a 72% jump in unit sales over the January to March 2008 frame, according to the NPD Group.

NPD reported a corresponding 14% jump in revenue, to $107.2 million. The research company credited the format’s growth to a larger number of households with high-definition TVs and declining Blu-ray hardware costs.

Overall, consumer awareness of Blu-ray has reached 90% in the U.S. during the past six months. The portion of consumers saying they are extremely or very likely to buy a player in the next six months is 6%, which is a slight uptick from the 5% who said the same in August.

The average selling price for a stand-alone BD player fell nearly 34% to $261 in the first quarter. Consumers who claim they are likely to buy in the next six months say they expect to pay $214 on average.

“The rising penetration of high-definition televisions and lower Blu-ray player prices are broadening the format's market opportunity," said Ross Rubin, director of industry analysis at NPD. "Even as options expand for accessing movies digitally, Blu-ray is carrying forward the widespread appeal of DVD into the high-definition marketplace."

One potential trouble spot on the road to mass adoption is that consumers might not feel as though they completely understand the technology. Although most are aware of Blu-ray, a good majority of respondents, 58%, say they are still not very familiar with the format.

Those who aren’t yet interested in buying Blu-ray players generally cite the format’s premium cost and say they find that their DVD player is “good enough,” according to NPD. This contrasts with Blu-ray’s early adopters, who were motivated by wanting the latest technology and not so much concerned with price.

Blu-ray’s path to wider acceptance also should be sped along by word of mouth, contends NPD.

"The leading driver of Blu-ray purchase intent is recommendations from friends, family or co-workers," said Russ Crupnick, NPD entertainment industry analyst. "Blu-ray's superiority used to be difficult for many consumers to grasp, but when friends rave about it, or demonstrate Blu-ray in their homes, they are selling the benefits in a way that is far more effective than simply viewing an advertisement or seeing it demonstrated at a retail store."