Prices continue go lower to increase adoption rate
The adoption rate of Blu-ray rests solely with the price of Blu-ray players and the prices of Blu-ray content being driven lower, according to multiple analysts. While lower-end Blu-ray players were hovering right at the $100 mark or less this past holiday season, we are now seeing low-end Blu-ray players starting to hit the $70 price point.
Target is selling the Philips BDP5010 Profile 2.0 Blu-ray/DivX player that is built for them by Funai for $69.98 in-store only, it would appear. (They are selling it on the Web site for $139.99.) While reviews on this player seem to be mixed, with some claiming that the image quality is only average, the end result is that you have little excuse not to jump to a Blu-ray player for that new HD TV that you already own.
Although the prices of Blu-ray players have been steadily falling, the price of Blu-ray movies has in some ways been slower to respond. While the majority of the studios have been releasing a significant amount of older catalog titles at very reasonable prices, new release Blu-ray titles have been hitting the streets at prices that are still much higher than their DVD counterparts; and some studios have gone to a bundling model for Blu-ray releases that in some cases makes the price of the Blu-ray even higher.
The Blu-ray title bundle deals can sometimes offer the Blu-ray, DVD, and digital download version of the title all in one package; however, the cost of these Blu-ray bundle deals can be expensive, and most of the time consumers have no choice if they want the Blu-ray version other than to pay this higher price. We have to believe that the higher cost of Blu-ray content is slowing the adoption rate, yet at the same time many are more than happy with DVD and see little reason to spend the money for Blu-ray. This further confirms that reducing prices of titles will be an issue.
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