Blu-ray Players Don’t Gain Much From Demise of HD DVD

The end of HD DVD players didn’t signal the beginning of consumers making a commitment to Blu-ray standalone players, according to data from market research company The NPD Group.

Standalone Blu-ray player unit sales dropped 40 percent from January to February in the U.S. and only saw a 2 percent increase from February to March, according to NPD’s Retail Tracking Service. HD DVD player unit sales dropped 13 percent from January to February, but as production stopped and inventories dried up, sales spiraled down 65 percent from February to March.

"That standalone Blu-ray players haven’t picked up significantly from HD DVD’s loss shows that few consumers were dissuaded primarily by the ‘format war’," said Ross Rubin, director of industry analysis, NPD. "When we surveyed consumers late last year, an overwhelming number of them said they weren’t investing in a new next-generation player because their old DVD player worked well and next-generation players were too expensive. It’s clear from retail sales that those consumer sentiments are still holding true."

One option consumers are embracing to enhance their DVD viewing experience is purchasing up-converting DVD players. According to NPD’s Retail Tracking Service, unit sales of up-converting players were up over 5 percent in the first quarter of 2008 compared to 2007, while sales of DVD players without an up-converting feature declined 39 percent.

"Consumers continue to see a gap between Blu-ray’s premium video quality and features and its premium price," said Rubin. "As content availability improves, this holiday season will be the best opportunity to date for retailers and manufacturers to promote Blu-ray adoption."

The NPD Group, Inc.