News Bits: Studios Give Thanks for Blu-ray

Written by Erin Barker

Wednesday, November 26. 2008 at 11:20 AM EST Post a comment

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The stakes are high this holiday shopping season.  Not only are electronics sales predictions grim in general, but it's also a make-it-or-break-it year for Blu-ray, which studios are counting on to renew the homevid market.

In the midst of economic crisis, consumer technology spending is expected to be generally low. A new study by management consulting firm Oliver Wyman says six in 10 consumers plan to cut back on their spending for at least one category of communications and media entertainment and suggests that desktop and notebook computers, music players, and cameras will face the worst declines.

On the plus side, Oliver Wyman expects Blu-ray to see a 140 percent gain in sales, and execs, who rely on homevid sales to cover production and marketing costs, are hoping that steep discounts in Blu-ray players and discs will motivate sales. But will it be enough to offset declining DVD sales? The Digital Entertainment Group has projected a 3 percent to 4 percent decrease in homevid sales, according to Variety.

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