High Def Brings High Sales Hopes.

Discussion in 'DVD Video' started by Allan, Aug 2, 2005.

  1. Allan

    Allan Guest

    http://www.investors.com/editorial/tech.asp?v=8/2

    High Def Brings High Sales Hopes

    BY BRIAN DEAGON

    INVESTOR'S BUSINESS DAILY

    Hollywood studios, electronics retailers and consumer electronics
    makers have a potential gold mine waiting for them when a new
    generation of DVD players starts to arrive late this year.

    Total U.S. sales of standard DVD players have approached $15 billion,
    says the Consumer Electronics Association. Many predict even higher
    sales of the new high-definition DVD players. And Hollywood is looking
    at a market that should surpass $10 billion a year in high-def DVD
    movie sales.

    DVD players, introduced in 1997, are the fastest-growing consumer
    electronics product ever. The CEA says more than three of every four
    U.S. homes already own a DVD player. A shift to new high-def DVD
    players should go along with the move to high-definition TV and
    surround-sound systems to provide the best video experience in the
    home ever.

    "The arrival of DVD players created a phenomenally successful business
    model, especially for the software (DVD movies and extra features),"
    said Mark Knox, a consultant for Toshiba on DVD technology. "Hollywood
    makes more money from home video sales than at the box office."

    Going To Next Level

    The shift to higher-quality home theater systems could boost the
    fortunes of consumer electronics retailers such as Best Buy (BBY) for
    years — and things already were looking up. In 2003 and '04, the
    industry recorded consecutive years of double-digit growth for the
    first time in a decade. The shift to digital video is the reason, says
    the CEA.

    "When consumers first started buying high-definition TV sets, they did
    so to enjoy the benefits the DVD brought," said Sean Wargo, an analyst
    for the Consumer Electronics Association. "Now it's going to the next
    level."

    Meanwhile, DVD sales have rescued Hollywood from a box-office slump.
    Consumers who bought a movie on VHS and later on DVD are expected to
    buy the movie for the third time, this time in the new high-def
    format.

    "We'll have the capacity to exploit our new releases and to take a
    look at our movie catalog," said Marsha King, general manager of
    Warner Home Video.

    When the new high-def DVD players start arriving, Warner will release
    about 50 movie titles in high def. Walt Disney, 20th Century Fox, MGM,
    Paramount and Universal are gearing up as well.

    U.S. consumers spent $15.5 billion buying DVDs last year and another
    $5.7 billion renting them, vs. $10 billion in U.S. movie ticket sales.

    Toshiba is likely to be the first maker to introduce high-def DVD
    players. The company says the new format will double picture
    resolution for users with high-def TV sets. The better video quality
    could prod users to improve audio with surround-sound setups.

    "History shows that a new medium expands the market," said Jim Barry,
    a spokesman for the Consumer Electronics Association.

    Digital high def has helped turn a commodity product, the TV set, back
    into a status symbol. New technologies like LCD and plasma have let TV
    screens expand to 62 inches, twice the size of ones based on old
    cathode ray tube technology.

    U.S. consumers spent about $40 billion last year for TV entertainment,
    including cable and satellite pay-TV services and DVD. They spent $24
    billion in 1996, the year before the introduction of DVDs. Some $9
    billion of that $16 billion jump came through DVD sales, says Steve
    Nickerson, senior vice president of market management at Warner Home
    Video.

    Analysts don't know when the new DVD revenue will flow. The first
    systems, likely available in time for Christmas, will cost $1,000 or
    more at first. Sales of today's DVD players didn't take off until
    prices fell below $300.

    Merger Talks Failed

    There's another tough issue facing the field: a standards war. Two
    competing high-def DVD systems will be brought to market — and they're
    not compatible. That's forcing people to choose sides or, as the
    Hollywood studios do, double up on their output. One technology,
    backed by a Toshiba-led group, is pushing HD DVD. The other camp, led
    by Sony, (SNE) is pushing Blu-ray.

    The two sides have talked about merging their formats, but to no
    avail. "The possibility of a tech merger is not dead, but it's more
    difficult now than it was even a few months ago," said Nickerson.

    Blu-ray's development is three to six months behind HD DVD. Besides
    Sony, Blu-ray backers include Dell, (DELL) Hewlett-Packard, (HPQ)
    Apple Computer (AAPL) and Hitachi. (HIT)

    Besides Toshiba, HD DVD backers include NEC, (NIPNY) Sanyo Electric
    and Thomson. (TMS)

    "Consumers will decide by voting with their wallets," said Andy
    Parsons, a senior vice president at Matsushita's (MC) Pioneer
    Electronics, which backs Blu-ray.

    HD-DVD discs can hold 45 gigabytes of data, while Blu-ray can hold 50
    gigabytes. Current discs hold 5 gigabytes.

    The larger size opens the door for new marketing possibilities. A
    movie disc could provide audio in multiple languages. A single disc
    could contain every episode of a full season of TV dramas. And no more
    need for two-disc sets — one for the movie and another for features.

    Analysts see the standards war ending in a year or two, as the DVD
    market enters its new phase.






    "Arguing with anonymous strangers on the Internet is a sucker's game
    because they almost always turn out to be -- or to be indistinguishable from
    -- self-righteous sixteen-year-olds possessing infinite amounts of free time."
    - Neil Stephenson, _Cryptonomicon_
     
    Allan, Aug 2, 2005
    #1
    1. Advertising

  2. Allan

    Mac Breck Guest

    "Allan" <> wrote in
    message news:...
    > http://www.investors.com/editorial/tech.asp?v=8/2
    >
    > High Def Brings High Sales Hopes
    >
    > BY BRIAN DEAGON


    > Consumers who bought a movie on VHS and later on DVD are expected to
    > buy the movie for the third time, this time in the new high-def
    > format.


    Dream on! How does it feel to "expect" ? Today's DVDs are good enough.

    --
    Mac Breck (KoshN)
    -------------------------------
    "Babylon 5: Crusade" (1999)
    Galen: "There is always hope, only because it's the one thing that no
    one has figured out how to kill yet."
    (Galen's obviously never met Warner Brothers, TNT-Atlanta or Sci-Fi.)

    "Brimstone" (1998)
    [Stone lights a candle for the dead in a Catholic church]
    Gina: Who's that for?
    Ezekiel Stone: Me.
     
    Mac Breck, Aug 2, 2005
    #2
    1. Advertising

  3. Allan wrote:
    > http://www.investors.com/editorial/tech.asp?v=8/2
    >
    > High Def Brings High Sales Hopes
    >
    > BY BRIAN DEAGON
    >
    > INVESTOR'S BUSINESS DAILY


    [...]

    > "History shows that a new medium expands the market," said Jim Barry,
    > a spokesman for the Consumer Electronics Association.


    Apparently he skipped a lot of "history" in school.



    John

    --


    Von Herzen, moge es wieder zu Herzen gehen. --Beethoven
     
    The Man Behind The Curtain, Aug 2, 2005
    #3
  4. Allan

    Jordan Guest

    I can only speak for myself, but I hardly ever bought movies on VHS, I
    bought plenty on DVD and when the high def stuff starts rolling in I'll
    likely buy new releases in the high def format but I doubt I'll replace
    any of the DVDs I currently own unless the high def editions are a
    better package (i.e. my featureless Blade Runner disc.)

    - Jordan
     
    Jordan, Aug 2, 2005
    #4
  5. Allan

    Goro Guest

    Mac Breck wrote:
    > "Allan" <> wrote in
    > message news:...
    > > http://www.investors.com/editorial/tech.asp?v=8/2
    > >
    > > High Def Brings High Sales Hopes
    > >
    > > BY BRIAN DEAGON

    >
    > > Consumers who bought a movie on VHS and later on DVD are expected to
    > > buy the movie for the third time, this time in the new high-def
    > > format.

    >
    > Dream on! How does it feel to "expect" ? Today's DVDs are good enough.
    >


    the studios might be in for a bit of a rude awakening. They are likely
    going to expect the HDDVD/BluRay disc sales to be substantial but
    likely early on, it'll be much less than they expect (or fear in worst
    case scenario).

    And I'm ALREADY sick of double-dipping and so i'm not much of a mind to
    be TRIPLE/QUADRUPLE dipped. Price point of the new discs are a key
    point, also. <$20 to make me buy.

    I DO want a new format. I have a 720p tv and would upgrade in a few
    years to a 1080p tv, but only when there's a single unified format.

    I'm a definite early adopter, but as of right now, I'm taking a
    wait-and-see approach.

    -goro-
     
    Goro, Aug 2, 2005
    #5
  6. Allan

    Justin Guest

    Allan wrote on [Tue, 02 Aug 2005 11:37:53 -0400]:
    > http://www.investors.com/editorial/tech.asp?v=8/2
    >
    > High Def Brings High Sales Hopes
    >
    > BY BRIAN DEAGON
    >
    > INVESTOR'S BUSINESS DAILY
    > Meanwhile, DVD sales have rescued Hollywood from a box-office slump.
    > Consumers who bought a movie on VHS and later on DVD are expected to
    > buy the movie for the third time, this time in the new high-def
    > format.


    That's funny, the first 3 DVDs I bought for 33c each from the 800.com
    sale put my DVD collection ahead of my VHS collection.

    > U.S. consumers spent about $40 billion last year for TV entertainment,
    > including cable and satellite pay-TV services and DVD. They spent $24
    > billion in 1996, the year before the introduction of DVDs. Some $9
    > billion of that $16 billion jump came through DVD sales, says Steve
    > Nickerson, senior vice president of market management at Warner Home
    > Video.


    How much has your cable bill gone up since 1996? I know mine has gone up
    substantially.

    > Analysts don't know when the new DVD revenue will flow. The first
    > systems, likely available in time for Christmas, will cost $1,000 or
    > more at first. Sales of today's DVD players didn't take off until
    > prices fell below $300.


    And items were released on DVD and rental VHS only... and there were all
    sorts of incentive sales. $10 Tuesdays at CompUSA, online coupons
    definitely drove my purchases early on.
     
    Justin, Aug 2, 2005
    #6
  7. Allan

    Alpha Guest

    "Goro" <> wrote in message
    news:...
    >
    > Mac Breck wrote:
    >> "Allan" <> wrote in
    >> message news:...
    >> > http://www.investors.com/editorial/tech.asp?v=8/2
    >> >
    >> > High Def Brings High Sales Hopes
    >> >
    >> > BY BRIAN DEAGON

    >>
    >> > Consumers who bought a movie on VHS and later on DVD are expected to
    >> > buy the movie for the third time, this time in the new high-def
    >> > format.

    >>
    >> Dream on! How does it feel to "expect" ? Today's DVDs are good enough.
    >>

    >
    > the studios might be in for a bit of a rude awakening. They are likely
    > going to expect the HDDVD/BluRay disc sales to be substantial but
    > likely early on, it'll be much less than they expect (or fear in worst
    > case scenario).
    >
    > And I'm ALREADY sick of double-dipping and so i'm not much of a mind to
    > be TRIPLE/QUADRUPLE dipped. Price point of the new discs are a key
    > point, also. <$20 to make me buy.


    Current projections are ca. $40 for HD DVD and perhaps $50 for Blu Ray when
    first introduced, retail. That is likely to fall as the production plants
    ramp up.
     
    Alpha, Aug 2, 2005
    #7
  8. Allan

    Allan Guest

    On Tue, 2 Aug 2005 13:52:18 -0700, "Alpha" <> wrote:

    >> And I'm ALREADY sick of double-dipping and so i'm not much of a mind to
    >> be TRIPLE/QUADRUPLE dipped. Price point of the new discs are a key
    >> point, also. <$20 to make me buy.

    >
    >Current projections are ca. $40 for HD DVD and perhaps $50 for Blu Ray when
    >first introduced, retail. That is likely to fall as the production plants
    >ramp up.


    $40?

    Alpha making up facts again...

    http://money.cnn.com/2005/01/26/technology/personaltech/dvd_format/

    "Peter Chernin, president of News Corp. (Research) and its Fox
    Entertainment unit, estimated recently that high-definition DVDs will
    sell for about $20 to $25 apiece, compared to around $15 for today's
    DVDs."








    "Arguing with anonymous strangers on the Internet is a sucker's game
    because they almost always turn out to be -- or to be indistinguishable from
    -- self-righteous sixteen-year-olds possessing infinite amounts of free time."
    - Neil Stephenson, _Cryptonomicon_
     
    Allan, Aug 3, 2005
    #8
  9. Allan

    Tarkus Guest

    On 8/2/2005 1:52:18 PM, Alpha wrote:

    > Current projections are ca. $40 for HD DVD and perhaps $50 for Blu Ray
    > when first introduced, retail. That is likely to fall as the
    > production plants ramp up.


    Whose projections? It's already been announced that they'll be
    substantially lower than that.
    --
    "If you don't like your job you don't strike, you just go in every day
    and do it really half-assed -- that's the American way."

    Now playing: the radio.
     
    Tarkus, Aug 3, 2005
    #9
  10. Allan

    Alpha Guest

    I'll look try to look it up. The article I read stated HD DVD about 20%
    higher than retail and Blu Ray about 50% higher.

    "Tarkus" <> wrote in message
    news:9.com...
    > On 8/2/2005 1:52:18 PM, Alpha wrote:
    >
    >> Current projections are ca. $40 for HD DVD and perhaps $50 for Blu Ray
    >> when first introduced, retail. That is likely to fall as the
    >> production plants ramp up.

    >
    > Whose projections? It's already been announced that they'll be
    > substantially lower than that.
    > --
    > "If you don't like your job you don't strike, you just go in every day
    > and do it really half-assed -- that's the American way."
    >
    > Now playing: the radio.
     
    Alpha, Aug 3, 2005
    #10
  11. Allan

    Alpha Guest

    "Allan" <> wrote in message
    news:...
    > On Tue, 2 Aug 2005 13:52:18 -0700, "Alpha" <> wrote:
    >
    >>> And I'm ALREADY sick of double-dipping and so i'm not much of a mind to
    >>> be TRIPLE/QUADRUPLE dipped. Price point of the new discs are a key
    >>> point, also. <$20 to make me buy.

    >>
    >>Current projections are ca. $40 for HD DVD and perhaps $50 for Blu Ray
    >>when
    >>first introduced, retail. That is likely to fall as the production plants
    >>ramp up.

    >
    > $40?
    >
    > Alpha making up facts again...


    No. Many retail prices are far higher than $15. Get your mind in gear. I
    went from percentage.
     
    Alpha, Aug 3, 2005
    #11
  12. Allan

    Goro Guest

    Alpha wrote:
    > "Allan" <> wrote in message
    > news:...
    > > On Tue, 2 Aug 2005 13:52:18 -0700, "Alpha" <> wrote:
    > >
    > >>> And I'm ALREADY sick of double-dipping and so i'm not much of a mind to
    > >>> be TRIPLE/QUADRUPLE dipped. Price point of the new discs are a key
    > >>> point, also. <$20 to make me buy.
    > >>
    > >>Current projections are ca. $40 for HD DVD and perhaps $50 for Blu Ray
    > >>when
    > >>first introduced, retail. That is likely to fall as the production plants
    > >>ramp up.

    > >
    > > $40?
    > >
    > > Alpha making up facts again...

    >
    > No. Many retail prices are far higher than $15. Get your mind in gear. I
    > went from percentage.


    i think it would surprsie MOST people what DVDs have an msrp of $29.99,
    b/c no one would pay anywhere near that (unless they shop at Suncoast).
    $20 normally. $9.99 or $14.99 for catalog titles. $16 on sale during
    the first week.

    Hell, XFILES Season Boxsets are now available new for $45.

    -goro-
     
    Goro, Aug 3, 2005
    #12
  13. Allan

    Alpha Guest

    "Goro" <> wrote in message
    news:...
    >
    > Alpha wrote:
    >> "Allan" <> wrote in
    >> message
    >> news:...
    >> > On Tue, 2 Aug 2005 13:52:18 -0700, "Alpha" <> wrote:
    >> >
    >> >>> And I'm ALREADY sick of double-dipping and so i'm not much of a mind
    >> >>> to
    >> >>> be TRIPLE/QUADRUPLE dipped. Price point of the new discs are a key
    >> >>> point, also. <$20 to make me buy.
    >> >>
    >> >>Current projections are ca. $40 for HD DVD and perhaps $50 for Blu Ray
    >> >>when
    >> >>first introduced, retail. That is likely to fall as the production
    >> >>plants
    >> >>ramp up.
    >> >
    >> > $40?
    >> >
    >> > Alpha making up facts again...

    >>
    >> No. Many retail prices are far higher than $15. Get your mind in gear.
    >> I
    >> went from percentage.

    >
    > i think it would surprsie MOST people what DVDs have an msrp of $29.99,
    > b/c no one would pay anywhere near that (unless they shop at Suncoast).
    > $20 normally. $9.99 or $14.99 for catalog titles. $16 on sale during
    > the first week.
    >
    > Hell, XFILES Season Boxsets are now available new for $45.
    >
    > -goro-
    >


    My point is that this price point will take many years. When I first bought
    CDs, they were $25 and people stood in line to buy them. Same with
    DVDs...$35-40 initially. Do not expect $10 HD DVD until the year 2008.
     
    Alpha, Aug 3, 2005
    #13
  14. Allan

    Alpha Guest

    2008 end of year if we're lucky. My guess really is 2010 for the same price
    range.
     
    Alpha, Aug 3, 2005
    #14
  15. Allan

    Goro Guest

    Alpha wrote:
    *snip*
    > My point is that this price point will take many years. When I first bought
    > CDs, they were $25 and people stood in line to buy them. Same with
    > DVDs...$35-40 initially. Do not expect $10 HD DVD until the year 2008.


    This doesn't seem right to me. IIRC, when DVDs were coming out, I
    could buy a LD for $32 and DVDs were cheaper than LDs, which was why I
    migrated over.

    -goro-
     
    Goro, Aug 3, 2005
    #15
  16. Allan

    Invid Fan Guest

    In article <>, Allan
    <> wrote:

    > On Tue, 2 Aug 2005 13:52:18 -0700, "Alpha" <> wrote:
    >
    > >> And I'm ALREADY sick of double-dipping and so i'm not much of a mind to
    > >> be TRIPLE/QUADRUPLE dipped. Price point of the new discs are a key
    > >> point, also. <$20 to make me buy.

    > >
    > >Current projections are ca. $40 for HD DVD and perhaps $50 for Blu Ray when
    > >first introduced, retail. That is likely to fall as the production plants
    > >ramp up.

    >
    > $40?
    >
    > Alpha making up facts again...
    >

    That may be, but you noticed his price was in Canadian $ I hope.

    --
    Chris Mack "Refugee, total shit. That's how I've always seen us.
    'Invid Fan' Not a help, you'll admit, to agreement between us."
    -'Deal/No Deal', CHESS
     
    Invid Fan, Aug 3, 2005
    #16
  17. Allan

    Alpha Guest

    "Goro" <> wrote in message
    news:...
    >
    > Alpha wrote:
    > *snip*
    >> My point is that this price point will take many years. When I first
    >> bought
    >> CDs, they were $25 and people stood in line to buy them. Same with
    >> DVDs...$35-40 initially. Do not expect $10 HD DVD until the year 2008.

    >
    > This doesn't seem right to me. IIRC, when DVDs were coming out, I
    > could buy a LD for $32 and DVDs were cheaper than LDs, which was why I
    > migrated over.
    >
    > -goro-
    >


    I have an extensive collection of LDs, and they hovered at $29 for the
    cheapest (retail). Fox never got below $50 and most remained $70.
     
    Alpha, Aug 3, 2005
    #17
  18. Allan

    Alpha Guest

    "Alpha" <> wrote in message
    news:...
    >
    > "Goro" <> wrote in message
    > news:...
    >>
    >> Alpha wrote:
    >> *snip*
    >>> My point is that this price point will take many years. When I first
    >>> bought
    >>> CDs, they were $25 and people stood in line to buy them. Same with
    >>> DVDs...$35-40 initially. Do not expect $10 HD DVD until the year 2008.

    >>
    >> This doesn't seem right to me. IIRC, when DVDs were coming out, I
    >> could buy a LD for $32 and DVDs were cheaper than LDs, which was why I
    >> migrated over.
    >>
    >> -goro-
    >>

    >
    > I have an extensive collection of LDs, and they hovered at $29 for the
    > cheapest (retail). Fox never got below $50 and most remained $70.
    >
    >
    >


    I'd also state that those were in ca. 1988 US dollars.
     
    Alpha, Aug 3, 2005
    #18
  19. Allan

    Allan Guest

    On Tue, 2 Aug 2005 16:43:01 -0700, "Alpha" <> wrote:


    >
    >No. Many retail prices are far higher than $15. Get your mind in gear. I
    >went from percentage.


    Once again... pulling numbers from your head...

    "Peter Chernin, president of News Corp. (Research) and its Fox
    Entertainment unit, estimated recently that high-definition DVDs will
    sell for about $20 to $25 apiece, compared to around $15 for today's
    DVDs."

    Please show us somewhere stating that Blu-Ray will be $50 a pop!!??






    "Arguing with anonymous strangers on the Internet is a sucker's game
    because they almost always turn out to be -- or to be indistinguishable from
    -- self-righteous sixteen-year-olds possessing infinite amounts of free time."
    - Neil Stephenson, _Cryptonomicon_
     
    Allan, Aug 3, 2005
    #19
  20. Allan

    Allan Guest

    On Tue, 2 Aug 2005 16:07:10 -0700, Tarkus <> wrote:

    >On 8/2/2005 1:52:18 PM, Alpha wrote:
    >
    >> Current projections are ca. $40 for HD DVD and perhaps $50 for Blu Ray
    >> when first introduced, retail. That is likely to fall as the
    >> production plants ramp up.

    >
    >Whose projections?


    Grin.. his.

    >It's already been announced that they'll be
    >substantially lower than that.


    Exactly:

    "Peter Chernin, president of News Corp. (Research) and its Fox
    Entertainment unit, estimated recently that high-definition DVDs will
    sell for about $20 to $25 apiece, compared to around $15 for today's
    DVDs."







    "Arguing with anonymous strangers on the Internet is a sucker's game
    because they almost always turn out to be -- or to be indistinguishable from
    -- self-righteous sixteen-year-olds possessing infinite amounts of free time."
    - Neil Stephenson, _Cryptonomicon_
     
    Allan, Aug 3, 2005
    #20
    1. Advertising

Want to reply to this thread or ask your own question?

It takes just 2 minutes to sign up (and it's free!). Just click the sign up button to choose a username and then you can ask your own questions on the forum.
Similar Threads
  1. Allan
    Replies:
    15
    Views:
    920
    Tim V.
    May 1, 2006
  2. Au79

    Nuremberg hopes to create 'Linux Valley'

    Au79, Aug 4, 2006, in forum: Computer Support
    Replies:
    0
    Views:
    407
  3. Rich
    Replies:
    61
    Views:
    2,391
    Bob Larter
    Jul 13, 2009
  4. chuckcar

    Re: Don't get your hopes up

    chuckcar, Jul 15, 2009, in forum: Computer Support
    Replies:
    5
    Views:
    373
    Aardvark
    Jul 18, 2009
  5. Rich

    Cruddy P&S sales drop for Sony, DSLR sales jump

    Rich, Aug 1, 2009, in forum: Digital Photography
    Replies:
    0
    Views:
    482
Loading...

Share This Page