It appears that giant retailer Wal-Mart’s aggressive Blu-ray sales over the last quarter has paid off, with the company now about tied with Best Buy for BD market share.
The numbers, via the NPD Group, show that Wal-Mart now commands 30 percent market share of Blu-ray disc sales, about even with Best Buy at 35 percent. In May, Wal-Mart had around 20 percent while Best Buy had an impressive 45 percent.
Despite usually having better prices than BB, Amazon and Target remained in third and fourth place, with about 15 percent and 10 percent respectively.
Overall, consumer spending on BD movies was up 83 percent year-on-year, and retail chains are actively fighting for market share.
“We’re seeing it as more of a horse race with Blu-ray,” adds Russ Crupnick, senior entertainment industry analyst for NPD, via VB. “I think Walmart has made a strong effort over the past year, being aggressive with price. They are very specifically targeting an untapped market. They are saying this isn’t just a high-tech product. It’s something that women and families can enjoy.”
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According to VideoBusiness, Blu-ray Disc set-top players continue to drop in price, and one analyst expects to see at least one $50 USD player on Black Friday.
Last year was dominated by off-brand, cheaper players such as those by Sylvania or Memorex but name brand, Internet-enabled players, most with video streaming from Netflix are becoming to be standard at under $200 USD.
Says Abt Electronics owner Jon Abt: “We are doing better than we initially expected, which is due to the price drops. The price drops were expected, but we didn’t think it would be this deep this quickly. BD Live players [most of which offer streaming movie services] are now available in sub-$200 models.”
Abt also says the company is selling 50 percent more BD units year-on-year.
More notably, NPD Group says 14 percent of all Blu-ray set-top sales this year are for sub-$200 models whereas last year that number was under 1 percent.
A few of the more feature-packed players available right now for under $200 are the Panasonic DMP-BD60 ($150), the Samsung BD-P1600 ($180) and the LG BD370 ($160), all of which offer Netflix, Amazon VOD, CinemaNow or Pandora.
“We’ve seen very strong growth in Blu-ray players this year. It has been a bright spot in a very gloomy industry landscape,” said Ross Rubin, NPD director of industry analysis. “Nearly all other electronics device categories have been down, such as digital cameras and MP3 players.”
As for Black Friday deals on BD players? Rubin says he can see a $50 USD BD player.
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Despite Sony’s marketing team deciding to change the focus of the PS3 more to the console’s movie downloading and Blu-ray capabilities, it appears consumers are still purchasing the system mainly for gaming.
Last August, the NPD Group released a study that showed that about 37 percent of PS3 owners had never once watched a Blu-ray film on their system. The second edition of the study was released recently, and the number hardly changed, moving down to 34 percent.
NPD did note however that the number of PS3 owners watching Blu-ray was higher then PS2 owners watching DVDs at the same point in the console’s life cycle.
“It’s at a fairly high level, where it took years for PS2 owners to use [that console] for DVD,” NPD analyst Russ Crupnick added, via VB. “Most PS3 people think of it as a gaming device, but there is a reasonable level of awareness and intended use for Blu-ray.”
The new study gave the following figures to the question of why PS3 owners had purchased the console:
58 percent - Mostly to play games
34 percent - For games and movie, equally
8 percent - Mostly movies
NPD also noted that PS3 owners who have had their machines for a couple of years of more tend to buy more Blu-rays over standard definition DVDs and vice versa for newer owners.
“Newer owners are somewhat more oriented to DVD than Blu-ray,” Crupnick says. “The later you get into an adoption cycle, the more you’re not getting the super aficionado. These are people who are tougher to convince about the benefits of Blu-ray and who are sensitive to price.”
