90,000 Low-Cost HD DVD players Sold in One Weekend

[AVRevForum.com]

According to a report in VideoBusiness.com today, Toshiba sold over 90,000 of its HD-A2 and A3 HD DVD set-top players last weekend. The unprecedented sales spike comes as Toshiba in partnership with big-box retailers like Best Buy, Circuit City and Wal-Mart, absolutely shattered price barriers for HD players by dipping below $100 for the A2 player, and $199 for the newer A3 player.

Competing Blu-ray players, including the “it-plays-every-Blu-ray-disc-made” Sony Playstation 3 Blu-ray-based game system are still priced firmly in the $350 to $500 range, thus creating a barrier to entry for many mainstream users who have been buying HDTV sets by the millions per month yet haven’t invested in either of the HD disc formats to date. Reports from the Blu-ray camp, suggest that consumers should not expect commiserate price drops for Blu-ray players this Holiday season, with $399 being the drop-to-price for a standalone player according to Sony executives.

The surge in sales activity should come as no surprise as tens upon tens of millions of HDTV sets are now installed in the market, and content providers like DirecTV, Dish Network and various cable companies struggle to keep up with the hunger for HD material 24/7/365, from those who have made an investment in a new television. Additionally, by dipping so low – so quickly – HD DVD players have priced themselves compressively with traditional DVD players which can be found in most mainstream retailers including warehouse retailers like Costco for less than $100. With the all-important “HD” moniker, mainstream consumers are willing to make the leap into a new technology when the cost barrier is at such a low level. Some industry experts suggest that within the next six to twelve months, traditional DVD players will be hard to find on store shelves as HD DVD players are completely backwards compatible with legacy DVD discs.

With a spike of 90,000 players entering the market significantly before the “Black Friday” selling season, Hollywood Studios should look toward higher-than-expected HD DVD software sales in December and in early 2008, as consumers will not want to simply play traditional DVDs in their new players and on their brilliant, new HDTV sets. Tempting, feature-laden titles like Transformers, Hulk, Batman Begins, the films of Stanley Kubrick, and beyond will tempt consumers to get into the world of HD discs for the holidays. The question still remains on whether or not studios will drop some of their disc prices from $24 and $30 for back catalog films to lure more mainstream consumers to buy the HD version of their films on home video instead of the lesser priced, traditional DVD versions.

by: Jerry Del Colliano

[Lotus]

Originally Posted by AVRevForum.com

According to a report in VideoBusiness.com today, Toshiba sold over 90,000 of its HD-A2 and A3 HD DVD set-top players last weekend. The unprecedented sales spike comes as Toshiba in partnership with big-box retailers like Best Buy, Circuit City and Wal-Mart, absolutely shattered price barriers for HD players by dipping below $100 for the A2 player, and $199 for the newer A3 player.

Competing Blu-ray players, including the “it-plays-every-Blu-ray-disc-made” Sony Playstation 3 Blu-ray-based game system are still priced firmly in the $350 to $500 range, thus creating a barrier to entry for many mainstream users who have been buying HDTV sets by the millions per month yet haven’t invested in either of the HD disc formats to date. Reports from the Blu-ray camp, suggest that consumers should not expect commiserate price drops for Blu-ray players this Holiday season, with $399 being the drop-to-price for a standalone player according to Sony executives.

The surge in sales activity should come as no surprise as tens upon tens of millions of HDTV sets are now installed in the market, and content providers like DirecTV, Dish Network and various cable companies struggle to keep up with the hunger for HD material 24/7/365, from those who have made an investment in a new television. Additionally, by dipping so low – so quickly – HD DVD players have priced themselves compressively with traditional DVD players which can be found in most mainstream retailers including warehouse retailers like Costco for less than $100. With the all-important “HD” moniker, mainstream consumers are willing to make the leap into a new technology when the cost barrier is at such a low level. Some industry experts suggest that within the next six to twelve months, traditional DVD players will be hard to find on store shelves as HD DVD players are completely backwards compatible with legacy DVD discs.

With a spike of 90,000 players entering the market significantly before the “Black Friday” selling season, Hollywood Studios should look toward higher-than-expected HD DVD software sales in December and in early 2008, as consumers will not want to simply play traditional DVDs in their new players and on their brilliant, new HDTV sets. Tempting, feature-laden titles like Transformers, Hulk, Batman Begins, the films of Stanley Kubrick, and beyond will tempt consumers to get into the world of HD discs for the holidays. The question still remains on whether or not studios will drop some of their disc prices from $24 and $30 for back catalog films to lure more mainstream consumers to buy the HD version of their films on home video instead of the lesser priced, traditional DVD versions.

by: Jerry Del Colliano

This worked so well that the whole industry is trying to figure out how to take advantage of it. Everyone took notice and Toshiba has to realize that they now know they can capture the market at $99. I'd be crunching numbers at Toshiba right now to see if a sales price of $149 for the A3 would be possible to push HD DVD over the 1M in home mark by years end.

Toshiba just figured out how to make someone buying that HDTV add a player. Something that neither side had successfully done yet until this past weekend.

90,000 players in one weekend. The only thing that stopped it from being more was lack of product. You know Toshiba has to be thinking "we can end this now if we can take a loss."

It's the same thing that Sony has been doing from the begining with the PS3, they lose hundreds with every PS3 sold. The difference is that 6M PS3 wont sell movies like 6M HD DVD players would.

If Toshiba really wants to end this war they can do it now, and just drop prices and take the loss. DISNEY, FOX, MGM, and LIONS GATE will not ignore an established base of 1M+ units especially if half of those were sold in a 2 month time frame.

[TheMoose]

Originally Posted by Lotus

If Toshiba really wants to end this war they can do it now, and just drop prices and take the loss. DISNEY, FOX, MGM, and LIONS GATE will not ignore an established base of 1M+ units especially if half of those were sold in a 2 month time frame.

They will absolutely ignore it when they realize that no one that bought a $99 HD-DVD player is buying any of their $30 HD-DVD movies, they only have the freebies that came with the player.
When they go to the store & see the prices on HD-DVD's they will continue buying regular DVD's & only put the HD-DVD's they got for free in to impress their brother in law!!
Now they no longer have a HD-DVD player they have an inexpensive upconverting DVD player.

I'm not in the "business" but I'm smart enough to know that the studios could care less how many players there are out there if they aren't selling their movies.
How many people that the only reason they bought a HD-DVD player was because it was $99 is going to spend 1/3 the price of their player on a single movie?

But you are right, Toshiba can end the war, by slashing prices & losing huge amounts of money & not selling many HD-DVD's with it they will kill 2 birds with 1 stone.
The Studios will go to the format where they can sell their movies & no one else will build any HD-DVD players when they have to compete with Toshgiba giving them away.
War over!!

[DavidEC]

Originally Posted by TheMoose

......How many people that the only reason they bought a HD-DVD player was because it was $99 is going to spend 1/3 the price of their player on a single movie?.....

The same people that pay $30 for an Emerson or like brand of DVD player and then spend $15+ for a movie each week to play on their $30 DVD Player!!

[Lotus]

Originally Posted by TheMoose

They will absolutely ignore it when they realize that no one that bought a $99 HD-DVD player is buying any of their $30 HD-DVD movies, they only have the freebies that came with the player.

Well they already know that the majority of them bought movies to go with it. Friday's numbers are in and it's the best friday HD DVD ever had for software. People aren't spending thousands on TVs then buying a HD DVD player and not buying software.

Either side would sell more if they had lower MSRPs. I'd buy a $20 HD title a lot quicker than a $30 one. I think most people would. $15 and I won't think about it at all if I like the movie.

I'm not in the "business" but I'm smart enough to know that the studios could care less how many players there are out there if they aren't selling their movies.
How many people that the only reason they bought a HD-DVD player was because it was $99 is going to spend 1/3 the price of their player on a single movie?

They are selling their movies. I was at Best Buy on Saturday and most of the non combo discs were priced between $20 and $23. The Combo discs were $30.

But you are right, Toshiba can end the war, by slashing prices & losing huge amounts of money & not selling many HD-DVD's with it they will kill 2 birds with 1 stone.
The Studios will go to the format where they can sell their movies & no one else will build any HD-DVD players when they have to compete with Toshgiba giving them away.
War over!!

You mean like Sony already did? Wait you don't think the other BD companies are happy that Sony sells units at a loss do you?

Right now Toshiba has nobody to **** off. Onkyo is rebadging the XA2. So now would be the time for Toshiba to do it. Grab market share, force the fence sitting Studios Warners and Lions Gate to make a jump and then revert to $249 prices after the "season." The PR from having Paramount & Warners quit the BD side would be enough with low cost players to pretty much end it. If Lions Gate went neutral, the writing would be on the wall.

The companies like other companies with prototypes in R&D would feel a lot better going to HD DVD if it looked like Toshiba had done what it took to turn the tide.

After selling 90,000 units in one weekend you know they have to be extremely confident that they can push things in their favor this holiday.

I know Toshiba is right now trying to entice the HD DVD Studios to do an all out $5 drop on MSRP of their titles.

[whatchel1]

The studios & the manufactuers will roll over to HD-DVD if they see the advantage. It's a lot like the Beta vs VHS war. The "quality" doesn't trump the price. Seems like $ony would learn. IMHO $ony should get it's A** kicked again. The stamping of HD over BD will move over to the camp that is selling the most. With economy the way it is stacking up right now the move of Toshiba is smart.