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After format war, number of Blu-ray ads drop

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Old 03-28-2008, 01:36 PM   #1
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Arrow After format war, number of Blu-ray ads drop

After format war, number of Blu-ray ads drop

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Companies blame player shortages

By Susanne Ault -- Video Business, 3/28/2008
MARCH 28 | The end of the format war has coincided with the lowest amount of retail advertising for Blu-ray players in months, according to DisplaySearch research.

Between Feb. 10 and March 11, newspaper circular promotions for BD set-top players, counted from a sample of major retailers and discount chains, numbered less than five each week. That is 50% to 100% less than weekly BD circular mentions in November and December of last year (see chart), according to DisplaySearch.

Traditionally, February and March are quiet for consumer electronics sales, with few seasonal events to promote around products. November and December, in contrast, generate heavy holiday retail foot traffic.

Studios and manufacturers said it was critical to continue aggressively promoting Blu-ray after the end of the format war. Hardware advertising has been scarce, however, due to shortages and fewer discounts.

“The biggest, most obvious [reason] is there is less competitive pressure to push [BD] right now,” said Paul Erickson, director of high-def and DVD at DisplaySearch. “There is not as much pressure to turn in a strong performance, and they can look to stabilize the dropping of prices.”

After limiting profits with aggressive promotions that saw some BD player prices fall to $300 in the fourth quarter, manufacturers since February have brought pricing for BD set-tops back up to about $399, said Erickson.

“They were locked into this fierce battle with HD DVD, and now that HD DVD is gone, they can focus on what is more a rational schedule of price reductions over time,” he said.

Panasonic and other manufacturer sources, however, believe any advertising decline has the most to do with current supply shortages of BD players.

Manufacturers did not anticipate that the format war would end this soon and were not prepared for the resulting heightened demand from consumers to buy BD hardware.

“Panasonic didn’t expect Toshiba to pull the plug on that particular day, and now there is more demand for Blu-ray, and we and other brands are reacting to that,” said Panasonic senior group manager Tony Jasionowski. “We’re trying to get more product out. We are on top of this and have made our factory in Japan aware of this in order to increase the availability of product.”

Jasionowski said any supply shortages should be remedied soon.

“The companies are reacting right now, and within the month, you’ll see increased supplies,” he said.

David Workman, executive director of consumer electronics buyer PRO Group, reports that his retail clients are likewise having problems keeping customers satisfied with BD products.

“Pretty much everybody is experiencing shortages—for high-end players from Pioneer or down the line to Sony’s [entry-level] player,” Workman said. “Normally, if they had something to sell, you’d see more marketing out there. You’d be telling people that the format war is over. Blu-ray should represent one of the top growth categories for the year, but you have to have it to sell.”
http://www.videobusiness.com/article/CA6545688.html
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Old 03-28-2008, 01:44 PM   #2
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I think that they forgot to mentiom the fact that they have to get rid of 1.0 players and bring 1.1 and 2.0 players to the market.
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Old 03-28-2008, 01:44 PM   #3
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..or the thread could have been named the title of the article itself "Companies blame player shortages".

The title used make it sound like they are letting up on advertising. While it isn't great they have shortages, it is really saying something positive about the demand for Blu-Ray.

I guess a Blu-Bot would name the thread "Overwhelming demand for Blu-Ray players"
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Old 03-28-2008, 01:45 PM   #4
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Originally Posted by tomes View Post
..or the thread could have been named the title of the article itself "Companies blame player shortages".

The title used make it sound like they are letting up on advertising. While it isn't great they have shortages, it is really saying something positive about the demand for Blu-Ray.

I guess a Blu-Bot would name the thread "Overwhelming demand for Blu-Ray players"
You just get here at HDF?

You know I use the title of the article as the thread title. I don't edit them nor will I.
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Old 03-28-2008, 01:58 PM   #5
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Wow, the advertising is down from the Christmas season?
That's unusual to say the least!!

Another excellent find from Suzanne.
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Old 03-28-2008, 01:59 PM   #6
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Hopefully the lack of advertising will put more money in their pockets to be able to afford releasing cheaper 2.0 players. Once they get the prices down on the players, I think blu-ray will really take off.
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Old 03-28-2008, 02:00 PM   #7
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Hopefully the lack of advertising will put more money in their pockets to be able to afford releasing cheaper 2.0 players. Once they get the prices down on the players, I think blu-ray will really take off.
According to Warren News and Consumer Electronics Daily, Wal*Mart will carry the Sylvania player for US$249 by the end of July 2008.
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Old 03-28-2008, 02:22 PM   #8
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This sussane fella has the funniest articles.
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Old 03-28-2008, 02:35 PM   #9
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You just get here at HDF?

You know I use the title of the article as the thread title. I don't edit them nor will I.
ah..sorry about that, I only saw the "sub" title, didn't notice there is a "main" title as well. Sorry - all is good then
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Old 03-28-2008, 02:41 PM   #10
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According to Warren News and Consumer Electronics Daily, Wal*Mart will carry the Sylvania player for US$249 by the end of July 2008.
Not bad, not bad. That is just a few months away too, so hopefully by year end we will see some better brands hit that mark. Sylvania may be fine for a lot of people, just not my cup of tea.
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Old 03-28-2008, 02:46 PM   #11
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ah..sorry about that, I only saw the "sub" title, didn't notice there is a "main" title as well. Sorry - all is good then
Tomes:

I won't give it a second thought because . . .

IR2BT Infrared-to-Bluetooth converter now on sale, PS3 owners rejoice

http://www.highdefforum.com/showthre...545#post570545

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Old 03-28-2008, 02:52 PM   #12
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Quote:
Originally Posted by Lee Stewart View Post
Tomes:

I won't give it a second thought because . . .

IR2BT Infrared-to-Bluetooth converter now on sale, PS3 owners rejoice

http://www.highdefforum.com/showthre...545#post570545

One less excuse for people holding out to not get a java crunching PS3.

Seriously people, it gets the best firmware updates around, and even the best 2.0 players will not be able to eat java like the PS3 does for a couple years.
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Old 03-28-2008, 02:58 PM   #13
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Originally Posted by kamspy View Post
One less excuse for people holding out to not get a java crunching PS3.

Seriously people, it gets the best firmware updates around, and even the best 2.0 players will not be able to eat java like the PS3 does for a couple years.
The hell with the PS3, if you try and put a game in the damn thing it will play it.
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Old 03-28-2008, 03:01 PM   #14
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The hell with the PS3, if you try and put a game in the damn thing it will play it.
You're right. Damned extra features.

Why pay $400 for something that can do more than play 2.0 BDs when you can pay $600 for something that plays 2.0 BDs without all the rif-raf. And who wants the damn movie to load up so fast? After I got my A3 I kinda got use to standing next to my player, disc in hand, waiting for it to load. Tis a peaceful moment.
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Old 03-28-2008, 03:04 PM   #15
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Originally Posted by kamspy View Post
You're right. Damned extra features.

Why pay $400 for something that can do more than play 2.0 BDs when you can pay $600 for something that plays 2.0 BDs without all the rif-raf. And who wants the damn movie to load up so fast? After I got my A3 I kinda got use to standing next to my player, disc in hand, waiting for it to load. Tis a peaceful moment.
I'm still waiting for my A3 to boot up....

LOL!! J/K guys, ease up a bit.
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