Blu-ray uptake could be stalled by recession

BLU-Ray won the format wars, but it hasn't taken off – and now there are fears a recession could stall its progress even further.
A scarcity of cheap Blu-ray video players combined with the effects of a recession are expected to delay take-up of the new, high-definition disc format in Europe, according to media research firm Screen Digest.
"A shortage of cheaper Blu-ray players means that the sub-$US300 ($465) machines that are already appearing on US shelves are unlikely to materialize in Europe this Christmas," Screen Digest analyst Richard Cooper said in a report.
"Combined with the recession, this means the format is unlikely to move much beyond the early adopter market this year," he said.
In Australia, a few sub-$500 Blu-ray players have entered the market, but the format still only accounts for 1.35 per cent of total DVD sales.
Toshiba's withdrawal of rival HD DVD video format early this year left the global market exclusively to the Blu-ray camp, led by Sony. But it caught component makers by surprise, which led to the shortage, Screen Digest said.
Sony said last week Blu-ray disc players would fall short of a worldwide target of 5 million units, most of which had been expected to sell in the US.
Experts say US electronics retailers are expected to slash prices of Blu-ray players, which sold for over $2000 in 2006, to as little as $232 after this week's Thanksgiving holiday.
Major film studios such as Warner Bros or Sony Pictures relied on video sales for 41 per cent of their movie-related revenues last year, Screen Digest said, with rentals generating a further 10 per cent.
European consumers are expected to spend 11.4 billion euros ($22.6 billion) buying videos this year, the research firm said, with Blu-ray accounting for just 3 per cent of that total.
By 2012, Screen Digest estimates the European Blu-ray market will be worth $10.7 billion, as broadcasters help high-definition viewing become the norm.