Wal-Mart boosts Blu-ray product support

Adds dedicated sections, players

By Susanne Ault -- Video Business, 6/3/2008

JUNE 3 | Wal-Mart is strengthening its support for Blu-ray Disc, launching new dedicated sections for the format in 1,200 outlets, as well as offering $100 store gift cards with the purchase of Blu-ray players in June.

Within the new ‘Hi-Def Blu-ray Experience Area,’ shoppers will find an increased selection of Blu-ray titles, as well as new models of Blu-ray players from manufacturers Magnavox, Samsung and Panasonic. Previously, Wal-Mart primarily offered Sony Blu-ray hardware in stores.

Underscoring its Blu-ray drive, the chain will hand out $100 gift cards to anyone who buys a Blu-ray player from June 8 through June 14. Shoppers can put their gift cards toward specially discounted Blu-ray titles at Wal-Mart during that week, including $15-priced 3:10 to Yuma, War, Shooter, 300 and The Fifth Element.

With the gift card, shoppers who purchase Wal-Mart’s $298 Magnavox Blu-ray player will essentially get the hardware for $198. That price marks the ideal cost to spark mass Blu-ray adoption, according to industry analysts.

“We are excited to be a destination for families looking to create a high quality, affordable home entertainment experience with our new, wider selection of high-def TVs, Blu-ray players and movies,” said Gary Severson, senior VP of home entertainment at Wal-Mart.

As the dominant home entertainment retailer, Wal-Mart is giving Blu-ray a thumbs up at a critical point. Many consumers say they are hesitant to adopt the relatively pricey format, whose players are widely tagged at $399. This is supported by research released today by the NPD Group. Yet studios are relying on growing Blu-ray sales to offset stalling interest in the maturing standard DVD category.

The Blu-ray Disc Assn. believes Wal-Mart’s larger BD embrace will go a long way in moving from early adopter to mainstream adoption.

“It’s hard to imagine a more effective way of getting Blu-ray out in front of the mass market,” said Andy Parsons, BDA Promotions Committee chief. “Having a separate section really gives Blu-ray a coherent presentation. It says, ‘Blu-ray is a new product category, and we’re shining a light on it.’ That is really important, where Wal-Mart is putting Blu-ray in this whole different stage. It exposes the format to far more people than could have been done otherwise.”

David Bishop, Sony Pictures Home Entertainment president, added, “The best way for the consumer to be converted is through retailer displays and demonstrations. We’re delighted that merchants like Wal-Mart are being aggressive and bringing the benefits of Blu-ray to their customers.”

Along with ramping up its Blu-ray offerings, Wal-Mart also has expanded other areas within its electronics area.

The chain has upped its assortment of HDTVs, introducing such new brands as Sharp. And the store has developed a new display section for its computers.

Wal-Mart also has granted more floor space for customers to sample the latest videogames. This social gaming area will be rolled out in 800 of Wal-Mart’s stores.

Other Wal-Mart categories featuring deepened selection include GPS systems, digital photo frames, digital cameras and digital music devices.

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