March 20, 2008

Toshiba recently threw in the towel on their HD-DVD technology, meaning Sony's (SNE) Blu-ray format has won the battle. But does that mean we're about to see a huge increase in Blu-Ray DVD player sales?

Yes, according to the 1,525 consumers in ChangeWave's latest consumer electronics survey.

We asked respondents how Toshiba's recent announcement will affect their purchasing plans, and nearly half (44%) said they are now More Likely to buy a Blu-ray. Only 1% said they are Less Likely.

In another highly positive sign, 93% of current Blu-ray owners say they're satisfied with their players - a clear indication of customer contentment.

So, the demand is unmistakably there. But our latest survey also shows a huge and sudden pullback occurring in consumer electronics spending - the largest since we began measuring spending trends back in 2002.

So is it realistic to expect consumers in the midst of a recession to fork over from $399 to $1,000 - the going rates for most Blu-Ray players?

Yes! An extraordinary 9% of respondents say they are planning to buy a Blu-ray HD DVD player in the next 90 days - a clear signal of pent-up demand. It doesn't hurt that Amazon is dropping Blu-ray DVD titles to below $15 and Best Buy is offering gift cards in return for purchasing Blu-ray movies.

Expect Blu-ray players to be one of the very few bright spots in a time of turbulence for the electronics industry.