Blu-Ray Player Sales in Western Europe Rising From 800,000 in 2008 to 7 Million in 2010

Last week in Amsterdam, the Blu-ray Disc Association European Promotions Group organized a seminar where members from across Europe reported on the status of their domestic Blu-ray markets.

What became very clear during the two-day meeting is that the Blu-ray Disc format is having a profound impact on Home entertainment markets throughout the European region. In both the consumer hardware and software sectors the format is showing considerable growth and this Christmas sales period promises to be a dynamic period for manufacturers and content owners.

“Despite the economic downturn, we are experiencing strong and solid growth in every national territory,” commented Frank Simonis, Chairman of the BDA European Promotions Committee. “What we have learned from this meeting is that market conditions vary country by country in Europe – our markets reflect the nature and character of each country – however Blu-ray is just as appealing to consumers in Scandinavia, as it is in France, UK and Italy.” 

The event heard from Jim Bottoms from specialist media analyst house, Futuresource Consulting who gave an up-beat assessment of the outlook for Blu-ray disc in Europe. In the US, Bottoms believes that the Blu-ray train is now running with such momentum that it is almost impossible to stop it. He predicts that 6 million Blu-ray players will be sold in 2009 rising to 15 million in 2010. Bottoms noted that US retailers are being creative in face of the economic downturn with many stores bundling Blu-ray Disc players with large screen HDTVs.

Europe is lagging behind the US – mainly due to the six month delay in the launch of PLAYSTATION3, which remains the killer application in the BD hardware market on both sides of the Atlantic. Another factor influencing HD’s uptake in Europe is the relative scarcity of HD broadcast services which has a knock-on impact on HD’s awareness. Bottoms estimates that by the end of 2008 only two per cent of European homes will be accessing HD content compared with one third of US homes.

“However, Europe will continue to buy new HD screens, albeit in slightly smaller screen sizes thanks to the credit crunch,” stated Bottoms. “By 2010, almost half the screens shipped in Europe will be 1080P and combine this with a mixed picture in terms of HD broadcasts and you have a natural market for Blu-ray Disc.” Bottoms predicts a progressive build-up of BD player sales in Western Europe, rising from 800,000 this year to seven million in 2010 and 24 million by 2012.

   
West European DVD Player Sales Outlook
   
Home BD
Player Sales (Inc Recorders and HTiB)

   
(Source: Futuresource Consulting)

“In Europe, by 2012, about one quarter of homes will have a standalone Blu-ray Disc player with PS3 being installed in addition in over half these homes,” suggested Jim Bottoms. Bottoms believes this continued growth in the hardware installed base will have a positive effect on Blu-ray Disc sales. He sees BD movie disc sales rising from 11 million in 2008 to close to 100 million in 2010 and 240 million in 2012.

National task forces have been created in many European countries and these are working tirelessly within their own markets to grow Blu-ray Disc into a mainstream home entertainment platform. This is a major task, involving close collaboration with retailers, content publishers and equipment manufacturers. What follows is a series of brief reports from individual regions describing how their mission to establish Blu-ray Disc is succeeding. “In Europe, by 2012, about one quarter of homes will have a standalone Blu-ray Disc player with PS3 being installed in addition in over half these homes.” Jim Bottoms Futuresource Consulting.