Blog

In 2009, Blu-ray title prices have declined rapidly and the pricing gap is narrowing, according to Futuresource Consulting’s price tracking service. The service shows that in February the average Blu-ray price for new release movies in the UK was £27.29. By the beginning of August this had dropped to £16.74 – a sizeable decline of 40%.

Catalogue pricing has also fallen, but not by such a significant amount. From an average price of £16.87 in February, this dropped to £14.25 in August, representing a decline of 15%. When looking at the average catalogue price across the three largest etailers, (Amazon, Play and HMV), the price drop is far more significant, with the average catalogue price hitting £11.22.

Back in Q4 2008, both in the USA and the UK the premium for purchasing a new release title on Blu-ray compared to DVD was between 30% and 80%. However, for catalogue BD titles this premium was considerably higher, and in some instances was as much as 300%. Although it has never been disputed that consumers will pay more for Blu-ray, the premium in the market in 2008 was clearly not sustainable.

“Pricing is becoming an increasing area of focus for Blu-ray,” says Alison Casey, Head of Global Content at Futuresource Consulting. “Although a number of new BD releases are beginning to achieve healthy sales volumes, catalogue titles continue to disappoint. The retail price of Blu-ray titles, particularly when compared to DVD, is a key factor in holding back sales. Research shows that Blu-ray player owners are making a value judgement call when deciding whether or not to pay the Blu-ray premium; often continuing to buy some titles in standard definition.”

With more than 1,100 BD titles to choose from, combined with growing retail support and increased promotional activity, the rise of Blu-ray will help to offset declining sales of standard DVD product. European sales of BD movie titles are expected to top 31m by the end of 2009 – a more than three-fold increase on the 9m sales recorded in 2008. By 2012, around 35 percent of Western European video disc retail sale volumes will be Blu-ray (the US figure will be 50 percent).

Focusing on the UK, this year Futuresource expects both BD player and BD disc sales to more than treble. UK disc sales could hit 12 million given the strong release schedule for Q4.

On the hardware side, Futuresource’s quarterly BD hardware tracker shows European BD player sales, excluding PS3, are running at close to 300 percent up on the equivalent period last year.

The analysts expect to see players at or below €100 by the Christmas selling season. They reckon BD players will approach impulse purchase level very soon and at these levels people will be increasingly tempted to replace DVD players with the newer format. They expect that over 20% of European homes will be BD enabled by the end of 2011.

Source DVD intelligence – reproduced with permission

Blu-ray Disc sales continue to rise according to the British Video Association, despite the recession biting the sector as a whole in the first half of the year.

DVD sales are down a steep 9.5% year-on-year bringing the total number of discs sold in 2009 to 100 million. The BVA argues this fall is partly the result of consumers upgrading to Blu-ray.

More than 3.1 million Blu-ray Discs have sold in 2009 to date, a rise of 231% on the same period last year. There are now almost 1500 Blu-ray releases.

The outlook for the second half of the year is more promising, the BVA reckons. Its 2009 Yearbook shows that 30% of all sales take place in the last two months of the year and some of this year’s big pre-Christmas releases including ‘Bruno’ (Universal Pictures), ‘Harry Potter And The Half-Blood Prince’ (Warner Home Video), ‘Ice Age 3′ (20th Century Fox Home Entertainment), ‘Terminator: Salvation’ (Sony Pictures Home Entertainment), ‘Tinker Bell’ (Walt Disney Studios Home Entertainment) and ‘Transformers: Revenge of the Fallen’ (Paramount Home Entertainment) are expected to perform extremely well on DVD and Blu-ray.

The BVA points to industry research conducted at the end of last year by TNS, indicating that, while 72% of consumers felt that they would have significantly less disposable income in 2009, with 31% strongly agreeing, most respondents (98%) said they would be actively seeking out promotions and offers.

Source - DVD Intelligence – reproduced with permission

Independent publishers and replicators, especially in Europe, will be breathing easier at the announcement by the AACS organisation that it has significantly reduced its license fees. It will cutting the cost of publishing on Blu-ray Discs by up to 75%.

The most significant savings are for low volume and first-time publishers. For example, the AACS costs for a first-time Blu-ray Disc publisher, say, for a run of 2,000 titles, has dropped from $4,300 to just $1,000 – a saving of over 75%.

For an existing BD publisher, the AACS fees have dropped from $1,300 to $500. “That’s over 60% off the cost of your clients getting their BD content on disc,” says Sonic who broke the news.

AACS has made the license fee payable in annual $500 increments instead of requiring $3,000 at the time of signing the Content Provider Agreement, and the agreement can be terminated at anytime. “This one change makes it possible for first-time and low volume content holders to get going with BD with a much lower start-up investment and at affordable per title costs,” comments Sonic.

(Source DVD intelligence – reproduced with permission)