2009 Blu-ray players applauded by retailers

New hardware models expected to sell well

By Susanne Ault -- Video Business, 1/16/2009

JAN. 16 | Following the Consumer Electronics Show in Las Vegas this month, retailers are giving generally good reviews to the upcoming crop of Blu-ray Disc players enhanced with portability, streaming capabilities and even a VHS component.

At CES, nearly every major manufacturer showed off Blu-ray players with new features.

Panasonic will launch this year the industry’s first portable Blu-ray player, which retailers say will likely work as a family’s second player in the format, enabling use of titles beyond the living room. Retailers who attended CES said they were surprised by the clarity of the images on the portable player’s relatively small 8.9-inch screen.

“This would be for people already buying the software, and this is what you could take with you if you want to play a Blu-ray player elsewhere,” said Rick Souder, executive VP of merchandise at Crutchfield.com.

The product was so impressive for airport-based InMotion Entertainment that the retailer will slot the Panasonic portable as its first Blu-ray player for sale. InMotion specializes in offering portable entertainment for travelers.

“We were hoping this would come to market. It’s an extremely sharp picture, and it will hopefully be a very strong seller for us,” said Steve Torr, director of software purchasing and rental services at InMotion. “We are the perfect store to offer them. We are one of the leading stores for Panasonic’s portable [standard-definition] DVD players.”

Some retailers admitted to being taken aback at first by Panasonic’s upcoming dual VHS and Blu-ray player. No major studio is putting out new product on VHS. But people will likely be attracted to the product, retailers said.

“There is the consumer out there with a very large library of tapes,” said David Workman, executive director of electronics buyer Pro Group. “We have to be careful when pushing the threshold of new technology that we don’t forget about everyone behind us.”

Initially, certain retailers do see some limited appeal with the 2009 Blu-ray models offering up increasing content streaming services. Panasonic has added the ability for people to access Amazon Video On Demand through its 2009 Blu-ray players. In recent weeks, Samsung and LG have been offering streaming Netflix programming via current Blu-ray players. Samsung will simplify access to streams by soon bowing the industry’s first wireless Web-enabled Blu-ray player.

“I think for a long time, it will be very niche and really only for gearheads,” said Souder. “If downloading movies was truly easy, [the conclusion might be different], but it’s not. People don’t care where the stuff comes from, as long as it’s easy to get.”

Yet Pro Group’s Workman believes many consumers will appreciate owning one box that can offer more and more centralized entertainment features.

“If you have the choice of multiple boxes or a single box, people will always go for the single device,” said Workman. “There are some titles that people will want to buy and own, and there are others they may want to rent [electronically]. If this single box can serve all these needs, then the potential market for Blu-ray can be exponentially greater.”

If the recent past is any indication, the new 2009 Blu-ray models should move well off shelves, Workman and other retailers generally believe.

Blu-ray players were “a very hot item through the holiday season,” said Workman. “In general, the dealers came out of it with depleted inventories. So I am very excited” about the upcoming models.

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