After consumers adopt Blu-ray, they spend four times the amount on software that they did a few quarters prior to their Blu-ray purchase, Carr said. After the initial transition, spending stays high, but Blu-ray customers still buy as much as 50% of their movies on DVD, due to Blu-ray’s limited selection and price premium, Carr said.
At an average price premium of $10, Blu-ray accounts for a little less than half the sales volume of a title, Amazon found. But if there were no price premium for the newer format, Blu-ray might account for 90% of sales volume, according to the retailer.
Combo packs also stimulate Blu-ray adoption, Carr said.
He addressed hardware and the need for consumer education, noting that while Internet-connected Blu-ray players enable multi-format consumption, connection rates for Blu-ray players are still relatively low.
Firmware updates, and the lack of consumers getting the ones they need, generate many consumer complaints to Amazon, Carr said, recommending that more players need to ship with an internal wireless antenna.
“A connected Blu-ray player is an even better customer experience,” Carr said.