Sony: BD Live growing, despite setbacks

Even though Sony has had numerous problems to overcome as it continues to promote its high-definition Blu-ray format, the demand and consumer interest in BD Live has increased enough to make Sony feel a bit more comfortable in the direction its interactive format is going.

"We're just in the Pong stage of BD Live," Sony Pictures Home Entertainment president David Bishop recently said during a press demonstration.  The "launch has posed many challenges for both Sony and the industry. There was the need for consumers to introduce their broadband connection to their entertainment system, which was generally located elsewhere in the home. It also has taken some time to grasp BD Live’s capabilities. Many of our initial features were regarded as a bit underwhelming.”

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Even Sony's Michael Lynton, Sony Pictures Entertainment Chairman and CEO, is skeptical that Blu-ray will be able to make up for lost revenue from DVDs.  In an interview with Forbes, he said the following:  "The question is whether people will really replace their libraries. Plus it would appear there's already price erosion in Blu-ray, so we're not making the price point we originally hoped for. The entertainment industry at large has pretty much given away high definition to consumers. They haven't really charged a premium for it on television. That makes consumers more likely to buy Blu-ray but less likely to pay a premium for it."

Sony executives that understand consumers want HD content -- and won't pay a premium $25+ price tag for Blu-ray movies -- is a step in the right direction, as they try and work with manufacturers and consumers.  I don't expect Blu-ray movies to drop to $9.99 overnight, but pricing, especially during a bleak economic time, has to be considered by manufacturers and movie studios trying to sell us standalone Blu-ray players and movies.

It seemed like 2009 could have been Sony's year, but the struggling economy has forced many consumers to more closely watch their budgets -- even though player and movie prices have significantly dropped from this point last year.

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