M&E Daily

Research: Lower Premiums For Blu-ray Could Spur Sales

Falling prices of both Blu-ray hardware and software are contributing to rising consumer interest in the format, says entertainment research firm Futuresource Consulting.

New releases on Blu-ray, which drive the market for the format, are currently selling for between 35% and 50% more than their DVD versions, according to Futuresource’s tracking data. Twelve months ago, the premiums were between 100% and 150%.

For studios’ catalog releases, the price premium for a Blu-ray Disc over a DVD is now between 100% and 150%; that compares to premiums as high as 300% a year ago.

Such price reductions are “very, very important in driving the market forward,” says Futuresource’s Jim Bottoms.

Given the price differentials between Blu-ray and DVD, as well as the general economy, consumers with Blu-ray players have had to make a “value judgment” on which version they purchase. “That dynamic,” Bottoms says, “is starting to shift a little bit.”

On the hardware side, Bottoms notes that high-definition TV prices dropped 17% in the U.S. over a recent seven-month period. Blu-ray disc players themselves are dipping below the $100 mark at retail, according to reports.