Amazon deal on Samsung BD-P1500

[galbicka]

From Cnet News:

http://news.cnet.com/8301-13845_3-10078942-58.html?part=rss&subj=news&tag=2547-1_3-0-5

[HDJerry]

Yeah. They are freaking because people aren't flocking to their discs so they are going to be dropping the price weekly. They thought they won the format battle and won the war. DVD-A vs. Super Audio cd's, anyone???

[bdraw]

That is the craziest interpretation of the diminishing of hardware prices I've ever heard. I mean, don't we all expect prices on electronics to drop?

The fact is they are cheaper now because there are so many players on the market and the cost to make the players is so cheap. If it was what you said it was there wouldn't have been so many new players announced at CEDIA and Samsung wouldn't be on like its 5th generation player already after only a few years.

[HDJerry]

It may be an opinion you don't agree with but it is hardly crazy. From The New York Times Technology section on Tuesday:

October 28, 2008
Big Stores Offer Blow Out Blu-ray Prices
By CHRIS ALBRECHT, GigaOm

If you’ve wanted a Blu-ray DVD player, there’s never been a better time to get one, as retailers are drastically reducing prices on the devices in an attempt to give the format a much-needed boost. The Wall Street Journal reports that prices on Blu-ray players at stores like Target and Best Buy will drop to $230 and possibly as low as $150 after Thanksgiving, down sharply from roughly $400 earlier this year.

While Blu-ray won the high-definition DVD format wars earlier this year, sales have not taken off. Most consumers have been content with the picture provided by standard DVDs, and Blu-ray players and discs are more expensive, not to mention that little economic downturn going on. DVD sales and rentals through the end of this September are down 2.4 percent as compared to last year, and the industry is pinning its hopes on Blu-ray to make up that difference.

Blu-ray manufacturers are in a race against time, as other options like VOD, digital downloads and streaming of movies directly to the TV set become more viable, rendering the need for the purchase of any physical format to watch a movie obsolete.

But while downloads and streaming may not have any physical baggage, Blu-ray has them beat when it comes to true HD. The U.S. just doesn’t have the broadband pipes to support full online HD delivery yet. Netflix appears to be hedging its bets as it offers Blu-ray discs for rent, and it has partnered with Samsung and LG to deliver streaming movies to Blu-ray DVD players (though those models retail for $400).

Given all this, will price reductions get you to buy a Blu-ray player?

And Tuesday's Wall Street Journal:

* OCTOBER 28, 2008

Retailers Slash Blu-Ray Player Prices
By MIGUEL BUSTILLO

* Article
* Comments

more in Gadgets & Games »

Electronics manufacturers and retail chains are slashing prices of Blu-ray players in a bid to boost adoption of the high-definition movie format, which has yet to catch on with American consumers.

Entry-level Blu-ray players have dropped to below $230 at major retailers including Target Corp., Wal-Mart Stores Inc. and Best Buy Co. Some experts predict that promotional prices may fall below $150 on Black Friday, the big shopping day after Thanksgiving. Earlier this year, most Blu-ray players retailed for $400 or so.

View Full Image
Retailers Slash Bluray Prices
J. Emilio Flores/ for The Wall Street Journal

Wal-Mart is pushing Blu-ray with displays such as this one in Palmdale, Calif.
Retailers Slash Bluray Prices
Retailers Slash Bluray Prices

Sales picked up at Best Buy after prices were cut, said Mike Mohan, Best Buy's senior vice president of consumer electronics. Still, he said, some consumers may not understand the benefits of the technology, which can offer crisper images than standard DVDs when viewed on high-definition TVs. "We have a job to do in explaining to customers why Blu-ray is important," Mr. Mohan said.

Another impediment to Blu-ray adoption: The price of Blu-ray discs, at about $30, is still often twice that of DVDs.

Industry analysts believe stores may have been overly optimistic in ordering Blu-ray players for the holiday season. That's another factor behind the price cuts, especially since some older models in retailer inventories can't connect to the Internet, which is necessary to tap interactive features on some Blu-ray discs.

There is another motive for the markdowns. Manufacturers and retailers want to speed the mass adoption of Blu-ray before digital-movie downloads and video on demand overtake movie disc sales and rentals -- a looming development that already may be damping sales.

"Up to this point, the category has not performed to expectations, but manufacturers sense the urgency, and are making sure that they lower prices to the point that Blu-ray players will become irresistible to consumers this holiday season," said Bruce Tripido, a vice president of marketing at Sharp Electronics Corp.

Blu-ray movies depict images in 1,080 lines of resolution compared to 480 for DVDs. They were expected to make up a bigger slice of disc sales after Blu-ray won the backing of Hollywood studios earlier this year over the rival HD-DVD technology.

But as of last month, only 4% of U.S. movie disc sales were Blu-ray, according to Nielsen VideoScan. Many consumers remain happy with mainstream DVDs, surveys show.

And "upconverting" DVD players that cost less than $100 can boost the image quality to a level that many consumers would be hard-pressed to distinguish from Blu-ray.

Big-box retailers rely on sales of movie discs, not just because of the profit they generate, but because they lure customers into showrooms where they may be enticed to buy flat-panel TVs and surround-sound systems.

Sales of DVD discs have begun to decline, however, and Blu-ray has yet to take up the slack, leading some analysts to conclude that retailers risk losing sales to movie downloads, much as they lost CD sales to music downloads.
[Bluray]

Cable-TV, phone and satellite providers as well as electronics makers are still piecing together the infrastructure and alliances necessary to offer a large library of downloadable and video-on-demand movies and TV shows in high definition. But as soon as that happens, "Blu-ray is done," predicted Rob Enderle, an analyst who advises companies including Microsoft Corp. and Hewlett-Packard Inc. on technology trends. "Retailers have every reason to be worried."

Blu-ray boosters remain optimistic that they will see a consumer breakthrough this Christmas season. They note that retailers are devoting generous shelf space to showcasing the technology, despite the soured economy.

Andy Parsons, a senior vice president at Pioneer Electronics Inc. and member of the Blu-ray Disc Association, an industry consortium, said he was heartened recently to see a full aisle of Blu-ray products at his local Target. "That sends a message to the consumer that this is real."

The vast majority of the estimated 6.5 million Blu-ray devices now in U.S. households are Sony Playstation 3 game consoles, rather than dedicated movie players. The Playstation 3 can play Blu-ray discs, but surveys show that gamers are not buying many Blu-ray movies.

After combing the Blu-ray movie racks at a Best Buy store recently in search of entertainment for his PlayStation, David Allen bought just one disc: "Iron Man," which was on sale for $25.99, compared to $14.99 on DVD.

"It's excessive," Mr. Allen, a manager at a Texas auto parts distributor, said of the price. "It's definitely worth it for certain movies, but I'm not going to be buying as many" as DVDs.

The challenge for retailers such as Wal-Mart, which has been featuring eye-catching Blu-ray kiosks alongside inexpensive DVD players, is how to balance promoting the new technology with providing the DVD values that consumers crave in the current economy.

"We expect to see continued interest in Blu-ray this year as more people continue to embrace HDTV," said Kevin O'Conner, Wal-Mart's vice president of consumer electronics, adding, "We will continue to grow Blu-ray in line with the customer's desire."

[bdraw]

Players aren't cheaper because they are on clearance or the BDA is worried about downloads, they are just cheaper to make.

Anyways, after reading those I still don't see how you came to your conclusion that the new prices were a fire sale.

Also, that article has some of its facts wrong. For starters, Blu-ray discs cost between $5-10 more than a DVD, not twice. Second, sales fluctuate from about 6-13%, we haven't seen them as low as 4% in some time.
http://www.engadgethd.com/tag/videoscan

All well, one way or another we'll know in a few years, but in the meantime I'm enjoying the highest quality movies at home ever available.

[HDJerry]

[QUOTE=bdraw;39049]

Anyways, after reading those I still don't see how you came to your conclusion that the new prices were a fire sale.

Uh, how about:

"retailers are drastically reducing prices on the devices in an attempt to give the format a much-needed boost."

[bdraw]

"They are freaking because people aren't flocking to their discs so they are going to be dropping the price weekly"

I don't know, but I don't see this as the same as a much needed boost, but perhaps it is our difference in perspective.

[pilotbob]

To tell the truth... blu-ray is the last device on my list for entertainment tech upgrades. I sill have SD TV's in the family room and master. I would say HD TV for the master first, then a second TiVO HD for that room first on my list.