Wal-Mart has ordered 2 MILLION HD DVD players.

[AlecWest]

Last I heard was that 72% of households in the US do not have HD TVs, which means that 28% do, and that's growing.

The question is, to what extent will it grow? Are those 28% of households middle-class households or "overall" - including upper-middle class or better households that can easily afford the technology? I suspect the figure is "overall." Affluent households will acquire the technology first (20%) while the upper-middle-class videophiles play catch-up (28%). But there's a growing economic gulf between the blue-collar and white-collar world ... so much so that a true "middle-class" is almost nowhere to be found (eg., "The rich get richer and the poor get poorer.").

My salary is only $50k annually. And with all the expenses I have in day to day living, it's hard for me to justify spending money on a TV system that gives me access to 15 or so HD channels when 10 times that many (or more) are SD. Not meaning to brag, it also happens to be true that I know no one in my neighborhood who earns more money than I do. And if a single man making $50k annually can't justify the expenditure, how can a family earning less do so?

Unless HD technology becomes "significantly" cheaper, we'll end up with a TV system for the rich vs. a TV system for the poor. And if more people continue to watch SDTV than HDTV, where will advertising agencies selling ordinary consumer goods target their dollars? And if the target is the majority market, what dollars will be left to target the minority?

It's my guess that HDTV is going to be a tough sell after those who can afford HDTV buy into it. It will be a stone wall only significantly lower prices can break. And mass production can only do so much in a given timeframe ... as is demonstrated by the Walmart deal. Someone mentioned earlier that they saw an HD video player in the mid-$300 range. $299 is cheaper but not "significantly" cheaper. Joe and Suzy Sixpack will want to see something a bit more affordable than that before they take the plunge - not to mention more than 15 HD channels to choose from and more than a handful of titles they can rent or affordably buy in a "specific" format that is "here to stay."

[Eug]

MSNBC: How Wal-Mart's TV prices crushed rivals

Last "Black Friday," for its annual post-Thanksgiving sales blitz, Wal-Mart Stores decided to slash the price of one of the hottest electronics items for the holidays—the 42-inch flat-panel TV—to $988. The world's largest retailer had staked similarly audacious positions before, in numerous product categories, as part of its quest to remain U.S. retailing's "low-price leader." In turn, Wal-Mart's move caused a freefall in prices of flat-panel televisions at hundreds of retailers — to the glee of many people who were then able to afford their first big-screen plasma or liquid-crystal-display model.

Now, it is becoming apparent that Wal-Mart's calculated decision to break the $1,000 barrier for flat-panel TVs triggered a disastrous financial meltdown among some consumer-electronics retailers over the past four months.

The carnage has one phrase written all over it — the "Wal-Mart effect." For many electronics competitors, the experience with flat panels has been a replay of what happened in other businesses over the past two decades as Wal-Mart's business stature grew dramatically. The Bentonville, Ark. juggernaut's entry into the grocery business in the late 1980s and its ability to offer deep discounts led to the bankrupting of dozens of regional supermarkets over the next 15 years, including Florida-based Winn-Dixie Stores, Eagle Foods from Illinois, and Penn Traffic in Pennsylvania.

[AlecWest]

MSNBC: How Wal-Mart's TV prices crushed rivals

Last "Black Friday," for its annual post-Thanksgiving sales blitz, Wal-Mart Stores decided to slash the price of one of the hottest electronics items for the holidays—the 42-inch flat-panel TV—to $988.

Not all "flat-panel" TVs are HD (grin). Not all that long ago, I saw a person wheeling a dolly out of my local Walmart. On it was a long/tall but thin box. And written on the side of it in small letters were the words, "standard definition."

If HDTV has done one thing, it has popularized the widescreen flat-panel format. There are a LOT of widescreen flat-panel SDTVs and EDTVs on the market. It doesn't mean that HD is gaining ground. The masses may want a set that "looks" like HD without the pricetag of HD.

Funny story. I recently visited a local Fred Meyer store (big in the Northwest). On display were a bunch of flat-panel TVs, most SD, some ED, and 4 HD. On the top shelf, 5 of the biggest were displaying for consumers to view. I snickered and went to the manager, saying, "Do you realize that only one of those five TVs is displaying the proper aspect ratio?" The rest looked stretched-to-fit ala a carnival mirror. The manager looked at me quizically and replied, "Aspect ratio???" I said, "Never mind," and went about my shopping, hehe.

P.S. BTW, that cover article I mentioned earlier for the April 30th issue is already online:

http://www.businessweek.com/magazine/content/07_18/b4032001.htm?campaign_id=rss_topStories_msnbc

[samijubal]

EDTVs have pretty much gone by the wayside as HDTV prices have droped. I paid about 2/3 as much for my 30" CRT HDTV as I did for my last 27" SDTV.

[AlecWest]

I paid about 2/3 as much for my 30" CRT HDTV as I did for my last 27" SDTV.

What are the makes and models of both TVs? Just curious. This is the first time I've heard anyone say that an HDTV with a larger viewing area cost less than an SDTV.

[edDV]

Back in 1991 I paid $900+ for a 27" Sony XBR. In 1994 I paid a little more than that for a 32" Sony XBR.

The 27" Philips HD Ready here in my computer room cost me $469 in 2003 (list price $795).

[samijubal]

I paid about 2/3 as much for my 30" CRT HDTV as I did for my last 27" SDTV.

What are the makes and models of both TVs? Just curious. This is the first time I've heard anyone say that an HDTV with a larger viewing area cost less than an SDTV.

A Panasonic 27" for $700 minus 10% in 1993, a Sanyo 30" widescreen HDTV with ATSC tuner for $460 last Christmas.

[Eug]

I paid CAD$2800 for a 34" CRT many years ago.

I can get a name brand 46" LCD now for much less than that now. And 32" LCDs are a down right bargain these days.

[dvd3500]

€999 for a 32" CRT widescreen from Thomson.
I am not upgrading anytime soon.

[SingSing]

I paid CAD$2800 for a 34" CRT many years ago.
I can get a name brand 46" LCD now for much less than that now. And 32" LCDs are a down right bargain these days.

If space is not an issue. Why stop at 46" ? The same budget can get you in 56~65" DLP projection TV. The different is 50" and up will better cover your vision at 5~7" and up.

[Eug]

I hate projection TVs. Always have. YMMV.

I don't want a TV over 52" anyway. 40-52" is perfect for me.

[dnix71]

The price will fall fast after the first batch. The first regular atapi 1x -R dvd burners from Sony were over $350 retail. I just bought a Pioneer 112D for $39 delivered. $100 for a hd/dvd combo set top player would be reasonable, as long as the movie discs themselves don't cost too much and the selection is there. It can't cost too much more to press hd than dvd once the retooling is done.

[Leoslocks]

Watch a demo of HD in Best Buy and see if you Want HD or Blu Ray.

Under $200 US would get a lot of attention this summer for an HD Player. By the way, how is Broadcoms stock doing?

Cheap HD DVD Players Set to Attack the Market article at xBits.

[Eug]

Fuh Yuan press release

Correction Statement

We are sorry to correct the statement that we have two million HD-DVD players order from Wal-Mart and manufactured by China Great Wall Group. The actuality is that we had not received yet. We are asked to provide the schedule to Wal-Mart and cost to determine the quantity even more than two million, if the cost is good enough and timing is correct. So the capacity is under consideration. Any qualified manufactured base group will be welcome.

2007/4/26

[Eug]

Wal-Mart Shoots Down Cheap HD DVD Rumor

A spokesperson for the company said Thursday that reported leak concerning Taiwan-based consumer electronics manufacturer, Fuh Yuan, partnering with TDK in China to manufacture the $250-299 players, had no merit. The report first appeared in AVS Forums, and was picked up by other Web sites.

"The article… was full of inaccuracies and we had no participation in it," the spokesman said in an e-mail to PC Magazine. "Most of the facts, including the purchase, were untrue," she added. "Not sure how it originated."

When asked to comment specifically on a statement appearing on Fuh Yuan's site http://www.fuhyuan.com/ev/action/, which implies the retailer is at least interested in ordering the players, the spokesperson said she could not comment on or disclose Wal-Mart's internal business with suppliers and our orders. However, the supplier said that no deal was imminent.

[edDV]

I bet it is all true but 12-18mo. out.

[AlecWest]

Watch a demo of HD in Best Buy and see if you Want HD or Blu Ray.

Under $200 US would get a lot of attention this summer for an HD Player.

Right now, NetFlix boasts over 75,000 DVD "titles" in stock for rental. Of those, only 250+ DVDs (that's DVDs, not "titles") are BluRay - with no count mentioned on HD-DVD discs on their site. And this is for the entire country.

They've got a long way to go before I'm convinced to buy one. And the first thing that needs to happen is the "settling" of this format war, one way or the other - or the release of a cheap player that delivers BOTH formats.

[videopoo]

Sorry HD DVD Freaks!

http://www.pcmag.com/article2/0,1759,2122715,00.asp?kc=PCRSS03069TX1K0001121

Bummer I really want HD DVD to win out here - mainly because it's the only format I can even think about offering my clients at this point and I HATE Sony and thier prioritory crap.

I recently recieved a quote from a vendor for a BD-J (Blu-ray) job - $70,000 - $100,000!!!!

[dvd3500]

(Blu-ray) job - $70,000 - $100,000!!!!

A BLU job for that much better come with a free bottle of champagen![/code]

[roma_turok]

HD-DVD drive for $72 only:
http://gizmodo.com/gadgets/deals/dealzmodo-sams-club-xbox-360-hd-dvd-drives-for-72-255161.php

[MOVIEGEEK]

I bet it is all true but 12-18mo. out.

I agree,I think Wal-Mart was negotiating a deal and someone leaked the info.

[bendixG15]

Its over..

[Conquest10]

Sorry HD DVD Freaks!

http://www.pcmag.com/article2/0,1759,2122715,00.asp?kc=PCRSS03069TX1K0001121

Bummer I really want HD DVD to win out here - mainly because it's the only format I can even think about offering my clients at this point and I HATE Sony and thier prioritory crap.

I recently recieved a quote from a vendor for a BD-J (Blu-ray) job - $70,000 - $100,000!!!!

That article doesn't say they will be Blu-Ray. It's just WalMart saying the rumor spreading isn't true at all. Lies of course, as most companies say that when news leaks.

I'm still hoping they will be HD-DVD.