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Discussion Starter · #1 ·
this post was actually a reply to another thread, but while i was writing it, the post was deleted (i think).


anyway, as a former employee and current customer, i've noticed a large recent push by BBY as well as other big box stores to showcase HD DVD.


BBY corporate has made a significant change lately to push HD DVD. if you ever look at their corporate weekly flyer (the one in your Sunday paper) you'd see a full page ad for the HD-A2 as well as many movies. this was only a few weeks ago. I've also seen many posters say they've seen increased demo rooms and better in-store setups for HD DVD recently. I'd agree based on what I've seen lately at my local BBY (Ann Arbor, MI).


The reason for this is b/c of the strong sales of HD DVD so far. It took them awhile to realize it but Best Buy has no loyalty except to money and right now, HD DVD is making more money. The only reason they originally pushed Blu Ray more than HD DVD is b/c they make more money off Blu Ray hardware (although the markup is still not much).


But if people are coming in and they want to buy an HD DVD player, then you can sell them:


1. $100 cables that cost $8 to buy OEM and other high-margin accessories

2. Service/Replacement Plans that are 100% margin.


Face it, the money that BBY makes from Blu Ray hardware and HD DVD hardware is INSIGNIFICANT to the absolutely insane money they make off warranties and cables/accessories


Software is a wash b/c they don't make much money off of ANY software they sell (movies, CDs, or video games) and HD DVD and Blu Ray sell for very similar retail prices.


For companies like BBY, hardware is the bottom line b/c that is where they can push their real money-makers: Service Plans and cables/accessories.
 

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It makes sense to.

HD DVD is a much easier sell. At 1/2 the cost and essentially the same number of titles, it's a more honest sale. I know if I were a sales person, I'd have a hard time pushing someone into the rediculously expensive format. Afterall, it's not like you can't watch exclusive titles in the other format. Jeeze, even in 5 years, what will we see, maybe 10% (~2500) total movies available in HD? Folks are going to be stuck upscaling half their movies waiting on the mastering to catch up (if it ever does).
 

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I am a early adopter by nature and being into HD-DVD from the beginning BB and CC turned me off by there tactics, I now found alternatives to purchasing what I like including BD and see no reason to change, so I will not give my dollars to the BB or CC conglomerates again. I may speak for others as well.
 

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Discussion Starter · #5 ·
i buy 99.9% of all my goods online anyway, especially electronics. my entire home theater (including cables, of course) except my DD (HD70 projector) was bought online. i bought my DD at BBY b/c of a great coupon i had that applied towards the HD70. BBY lost money on the sale and has lost a lot of money to me over the years through similar sales.


after working there, i can never pay for anything that isnt at cost or below. i just cant.
 

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Yep, the new BB/Magnolia by my house has two endcaps of BD players with really nice TVs hooked up to them, and the salespeople push BD like crazy.


The Toshiba HD-A2 is stuck in with all the regular DVD players, no TV hooked up to it, no promotion whatsoever.
 

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Might take awhile to get to all the BB all they knew was to push BD with all their might. As they have piles of BD players.


But hopfully in time all BB will see that HDDVD is basicly the same as BD but half the cost. In some cases it better as 90% of the HDDVDs are given a great tranzfer and sound buy utlizing VC1,mpeg4 (winestein) and BD has used mpeg2 which is what DVD uses..


but like said the closest BB has w BD displays. The A2 is keeped at the begining of the DVD recorders asile. Just a basic display not hooked to a TV set or anything.


The further BB also has 2 BD displays however the last time I cheeked they had a A1 hooked to a 30-35" CRT HDTV, which was stuck in a extra cornner in betwwen the analog CRTs and the HT rooms. What's up whith that sure it looked great but the plasma/LCDs displays of BD were much bigger and seemed to look better but it was more about the types of tvs being used...
 

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Funny, my Best Buy just opened up there own HD DVD "endcap" if you will. This JUST happened after months and months of nothing but HD DVD bashing and "raying" customers. There were two HD-A2's available when I went there and saw one guy pick one up and buy it. I told him "good choice" and he smiled and said "yup - it's the only choice."


It's good to see these goons finally at least acknowledging HD DVD. Their display was playing that Kevin Costner baseball game (sorry, forgot the name) on a Sammy LCD and it looked friggin' awesome - beautiful.


Very good to see it.
 

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I guess if you can't kill them or make them go away, you join them?
 

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I was recently (a few weeks ago) at BB shopping for a new DVD player. I had not intention of buying either a HD-DVD or BR. The salesman immediately asked me if I had seen the new HD-DVD. He didn't even mention BR.


So with my limited experience, BB is pushing HD-DVD.
 

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Quote:
Originally Posted by chuckken /forum/post/0


Same here in Atlanta...Just recently both BB and CC have now finally setup end displays with the HD-A2 and are now finally pushing the HD-DVD format...(bout time)...

The end cap displays are purchased by vendors as advertisement space just like the ads in the weekly sales paper. Just because you do or do not see HD DVD or BR as an end cap does not say anything about BB or CC pushing the product. It actually says the vendor is buying more advertisement for the product. This is still a good thing however, I think it was expected that Toshiba and other HD DVD supporters would start to spend more on ads. /shrug
 

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Locally I've seen a big switch away from BD to HD DVD and I think (pure speculation on my part) that there has been so much resistance to the BD price and sales are few and far between - they've finally noticed how good HD DVD is and that it's a much easier sell. If Toshiba spends some money to get them to demo these units as well then a snowball effect will happen and is probably starting to happen now!


The interesting question is - which came first the chicken (price) or the egg (studio support)? This format war will be evidence of whether its price (no. of units sold) that brings studio support or whether it's studio support (content) that's the most important factor.


Cheers,


Grant
 

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Toshiba is expected to spend a lot of ad money very soon to promote the A2, so these are the early signs of that, and not really indicative of any change of heart by BBY. The reason this hasn't happened until now is because of supply restrictions, but now Toshiba should be able to keep up with advertised-based demand.
 

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i would agree the hardest factor to overcome for both formats is price (BD) and lack of knowledge not be blatantly obvious. in my store hd dvd has been outselling blu-ray (south philly) but most people still coming in knowing about blu-ray and have no idea hd dvd even exist. ive worked to inform managers, fellow employees, and customers but as of recently we have no display setup and i don't see that changing anytime soon. yesterday after we closed i kept working with a couple explaining both the positive and the negative of both formats and it made me realize both still have some ways to go to overcome their shortcomings
 

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I already posted my BB story with their HD DVD display (hooked up with normal compsoite cables, broken front piece, horrible PQ on old TV) and they have not sold ONE A2 in weeks. (The same exact two have been up high on a shelf, in the same position, with the same dust on them for 3 weeks) - They are displaying HD DVD and their display makes it look worse than standard DVD. Honestly. They BD displays are great, and that is what is selling at my BB.


In any case, I own both and I paid less for my Sony S1 player, new, at BB than I did for my XA2 through mail order, and i got it for $799. Sony came out to $701 after my coupons, sale, etc.


I like both, but HD DVD is superior. The PQ, the player (XA2 vs S1), and disc prices overall (though this is close or = many times)


Watched Beerfest on BD last night (CC put them out a week early) and loved the movie but the trasfer was pretty soft. Also watched Forbidden Planet on HD DVD and for an old movie, it looked great. A little soft but it was a great transfer IMO.


Hopefully these store will learn how to set these displays up correctly. Even Frys Electronics BD display is AWFUL. They have the panny player feeding three TV's, splitting the signal and it looks like SD. This is right in front of the store when you walk in. Not doing much to showcase it. But its better than their HD DVD display as they have none!
 

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Quote:
Originally Posted by bubbastyle123 /forum/post/0


Software is a wash b/c they don't make much money off of ANY software they sell (movies, CDs, or video games) and HD DVD and Blu Ray sell for very similar retail prices.

Think about this scenario. Amazon sells "you me and dupree" for $27.95. And you know that amazon has to make something off of it. Probably in the line of $5-8 per disc sold.


Best buy (my local store) sells that disc for $39.99 so they will make $17-20 off the exact same sale.


Also, my Best Buy has Blu Ray (player and software) on an end cap in the DVD player section. The HD A2 is on the side with 2 BR players and the demo is in a demo room, pretty much hidden from the public.
 
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