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Report: Consumer Indifference High for HD Formats

29 Oct, 2007 By: Erik Gruenwedel

The Blu-ray Disc Association this week is rolling out the stops for a pre-holiday marketing blitz. Select retailers have dropped the retail price of Toshiba's HD-A2 HD DVD player below $200.

But new Jupiter Research indicates just 24% of consumers even consider high-def packaged media when upgrading their home entertainment systems.

The report found that an abundant supply of standard DVD movies, compared to a relative limited number of titles in HD DVD and Blu-ray, has resulted in little motivation among consumers to adopt.

In addition, the study found that the same consumer electronics manufacturers attempting to forward HD packaged media have undermined efforts by flooding the market with inexpensive players that claim to up-convert standard DVD movies to HD quality resolution.

“The real competitor that both of these formats face is not each other, but rather [these] low-cost DVD players … that pass the ‘good enough' test for most consumers,” said Michael Gartenberg, VP, Jupiter Research and author of the report.

The study found that increased penetration of broadband in households, portability of entertainment between devices and downloadable video content have undermined HD packaged media.

“The abundance of material in such a wide variety of formats is going to make adoption of any single standard very difficult as consumers may well opt for a combination of what is already available,” said David Schatsky, president of Jupiter Research.

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