As DVD sales decline, the question everyone is asking is if Blu-ray will go the same way, according to Nelmari Claassens, Sony Pictures Home Entertainment marketing manager at Ster-Kinekor Entertainment.
Blu-ray is fairly new and still has a lot to prove, says Claassens, so how can it survive this downturn when DVD is struggling already?
Claasens believes that all is not as damning as it sounds. “Particularly if one considers what the world is going through economically. Indeed, studios remain very optimistic when it comes to Blu-ray, and rightly so. Blu-ray is increasingly offering consumers the best of both worlds: competitive pricing and unparalleled technology.”
A recent media report predicts the US DVD sales and rental marketplace is going to decline by 7.5%, she says, but adds that this decline is now partly offset by the growth of Blu-ray - it is expected to be closer to 4%.
December 2008, Claasens says, clearly shows what the future holds, as the prices of Blu-ray players were slashed and made more affordable for consumers. “In South Africa, we enjoyed phenomenal sales over the festive season and from Sony Pictures Home Entertainment's (SPHE's) perspective, we expect to conservatively grow our Blu-ray title business by 20% this year.”
Locally, DSTV's success with high-definition (HD) PVRs and the subsequent HD channel, have also contributed to the wellbeing of Blu-ray, Claasens notes. Consumers now know that HD is the next step in the evolution of video and audio, and a “must have”.
South Africa is contributing to the longevity of Blu-ray: “The estimated market for Blu-ray discs sold is 30 million units, of which South Africa has sold almost 20 000 copies in 2008, of which half were represented by Sony Pictures Home Entertainment (SPHE). This is considerable if one considers the size of our marketplace as well as Blu-ray's relatively late entry-to-market,” she says.
The success of Blu-ray can also be attributed to industry co-operation - the industry understands that commitment to the format will benefit everyone in the long run, she adds.
“With this said, we believe the sheer value of Blu-ray will drive its growth - the technology and phenomenal viewing pleasure speak for itself and this is a fantastic foundation to work from,” she concludes.
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