Everytime I read an outtake from the statement it screams that people who write commentaries on websites are clueless.
The BDA had a projected growth from 2% revenue share of optical discs, to 8% revenue during 2008. With 3 months to go, and the busiest selling season coming up, they are currently selling about 6% of total revenue for opitical discs, representing a three fold growth, and target numbers which are dead on, if not ahead of schedule by years end.
The BDA is following the path of technologies before it, and is following a growth pattern which is also consistent.
Tom, I'm afraid we aren't seeing prices drop because the consumers are in fact buying what is out there at the prices they are currently at. They are doing so in numbers which don't touch DVD, but are consistent with the growth of the product which they wish to achieve.
This may shock many, but the article is specific, and it does not blame consumers. It says that there aren't enough players out there yet to really bring prices down, but it is not at all saying that at current prices, Blu-ray isn't selling. It also doesn't say that the BDA or CEs are upset with the way BD players are currently selling.
Economics 101 says that when you have a product in limited quantity, that you want to maximize profits on, you do so at the highest possible price the market will support at that time.
Guess what? The BDA isn't forcing anyone to buy, but people are still buying and the product has seen triple digit growth in 2008, in line with forcasts.
We (consumers) can complain if we want, but those are the same complains that went along with DVD at the same point of the DVD life cycle.
Surely some people can actually read this quote and see that is EXACTLY what was said and implied:
Parsons was speaking as part of a panel on high-definition formats and told the audience that Blu-ray hardware and disc prices are behaving the same as when DVD players were first getting popular. “There’s not enough market [volume] to lower the price,” Parsons said, adding that companies have to build “awareness and demand for the technology," before prices can decrease.
From:
http://www.tgdaily.com/content/view/39347/97/
Note: That quote is still partial instead of a complete text, in proper context, for what was said. Also, it was said at an INDUSTRY convention, where there is a vested interest in keeping player & software prices high so profits are maximized.
Don't get me wrong, but 2 years ago, it was $1,000 for a Blu-ray player that was 1.0 and incredibly slow. Now the $230 player may be considered 'off brand' but it is also getting pretty decent feedback overall compared to the very first players...
http://reviews.cnet.com/video-players-and-recorders/insignia-ns-brdvd/4505-6463_7-33189493.html?tag=mncol;lst
So, for 1/4 the price of 2 years ago, I can get better performance? Isn't that 'prices dropping'?
Yes, discs are still high, but sales are out there, and I don't have an issue paying $5 or $10 more for a movie that has stellar video and audio - at this time. Keep in mind I only buy 5-10 movies a year typically, which is WAY more than the average DVD consumer purchases.
I think that some people are hot to dis' Blu-ray instead of actually making themselves knowledgable about what expectations were, what the current sales levels are, and what we will likely see in the next few months for sales.
Do I want prices to drop? Of course I do! But, do I expect them to before Blu-ray hits 20% or so of optical disc revenues and guarantees about 1,000,000 discs sold on every major film? Nope, I don't forsee that for at least a year. Next holiday season? Yes, I see some sales and maybe a 20% price drop or more on software.
