Streaming content popular Blu-ray player feature

PHYSICAL: Blu-Con: But consumers will continue to demand physical media

By Susanne Ault -- Video Business, 11/3/2009

NOV. 3 | PHYSICAL: BEVERLY HILLS, Calif.—Streaming movie/TV content is becoming a must-have feature for Blu-ray Disc players, but it will unlikely supplant consumer demand for high-definition physical media, noted executive participants at a panel discussion held at Blu-Con here on Tuesday. Click for photos.

Netflix streaming is now available in eight different Blu-ray models, and it will soon be added to the PlayStation 3, noted the service’s chief content officer Ted Sarandos.

He believes that consumers value the high-def experience, but that factor alone might not be enough to close a Blu-ray player sale. The additional opportunity to access Netflix streaming film queues boosts a Blu-ray player’s attractiveness.

“Streaming apps are the killer apps for Blu-ray players,” said Sarandos. “Streaming changes the discussion. The box is now better. It does something more than other [DVD or Blu-ray] players.”

Sony Electronics VP Chris Fawcett notes that one-third of people who have bought Blu-ray players said that Web connectivity was part of their purchase intent. He believes that this motivating factor will grow in importance as more people become aware of these streaming services, which also includes CinemaNow and Blockbuster Video on Demand, depending on the player.

Despite streaming popularity, physical discs will remain in demand for some time due to consumers’ tendency to move cautiously from established media to emerging technology.

“We are thrilled with our streaming business, but equally thrilled with our disc-based business. We’ve said we’ll be shipping discs until 2030,” said Sarandos. “The living room evolves very slowly.”