Blu-ray Bucks Weak Economy

Despite consumer insecurity over the dodgy economy, Blu-ray players are flying off the shelves.

Player sales are up 72 percent in the first quarter of 2009, compared to the same period a year earlier, according to the NPD Group's Blu-ray Report for March 2009. The research firm also found that awareness of the format has hit the 90 percent mark in the past six months, although among adults, 58 percent say they are still "not very familiar." Presumably the heightened interest in Blu-ray among the young hinges on its PS3 presence.

One thing driving Blu-ray acceptance is the increasing affordability of players. The average selling price has fallen 34 percent during the past year, from $393 to $261. Those who intend to buy in the next six months expect an even better $214.

That's certainly a small price to pay for HDTV on disc at a high data rate, with a better picture than you'd get from satellite or cable. It certainly doesn't hurt that recent generations load discs more quickly, comforting consumers whose reflexes and expectations are shaped by the speediness of the average DVD player. And the format war with HD DVD is now all but forgotten, pushed out of public consciousness by TV advertising for movies "on Blu-ray and DVD."

But there may be an even more powerful factor at work than lower pricing, high quality, faster hardware, and format-war victory: "The leading driver of Blu-ray purchase intent is recommendations from friends, family or co-workers," said NPD analyst Russ Crupnick. "Blu-ray's superiority used to be difficult for many consumers to grasp, but when friends rave about it, or demonstrate Blu-ray in their homes, they are selling the benefits in a way that is far more effective than simply viewing an advertisement or seeing it demonstrated at a retail store." Keep up the good work, folks!

X