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Cheaper Blu-ray Coming Your Way

- By - Source : Tom's Guide US

One of the biggest barriers for any solid technology to gain the acceptance of the mainstream consumer is price. Those who have seen Blu-ray movies on a 1080p display know what a leap they are over DVD, but until prices fall below a certain point, consumers won’t buy in.

Blu-ray-making companies Panasonic, Philips and Sony are currently working with other patent holders to establish a one-stop-shop license, which will cover essential patents for Blu-ray Disc, DVD and CD.

Aiming for an introduction in the middle of this year, the license program will be offered by a new independent licensing company that will be a single point of contact for licensees, greatly reducing the burden on licensed companies that would otherwise have to report to multiple patent pools. The companies involved estimate that royalty rates for Blu-ray Disc products are expected to be at least 40 percent lower than the current cumulative royalty rates for individual Blu-ray Disc, DVD and CD format licenses.

What does that mean for the consumer? Hopefully lower prices. For companies, the new rates for Blu-ray Disc products will be $9.50 for a player and $14.00 for a recorder. The per disc license fees will be $0.11 for a read only disc, $0.12 for a recordable disc and $0.15 for a rewritable disc.

Gerald Rosenthal, CEO of the new license company, (formerly the head of IP at IBM and more recently CEO of Open Invention Network, said "by establishing a new licensing entity that offers a single license for Blu-ray Disc products at attractive rates, I am confident that it will foster the growth of the Blu-ray Disc market and serve the interest of all companies participating in this market, be it as licensee or licensor."

We love our high-definition movies, and we hope to see more affordable Blu-ray product across the board later this year.

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4c1dr41n 02/26/2009 8:52 PM
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tenor77 02/26/2009 9:03 PM
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That's not too bad for all 3 formats. As long as they pass the savings on to us this is a good thing.

A Stoner 02/26/2009 9:10 PM
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Lower price is always good.

_horse 02/26/2009 9:19 PM
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Well crap this means I have to actually go out and buy an HDTV now doesn't it...?

techtre2003 02/26/2009 9:38 PM
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OK, a 40% decrease in cost resulting in an 11 cent fee for a Blu-Ray discs. That made the old rate what? 18 cents?
Am I missing some big savings somewhere?

jsloan 02/26/2009 9:42 PM
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around here blueray players and disks are very expensive, i'm talking about $25+ per movie!, $10 more than dvd version.

grieve 02/26/2009 9:47 PM
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bin1127 02/26/2009 9:59 PM
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I actually never find buying movies to be too expensive. Blu-ray here are $5-10 more but it's more than worth the money. Plus you would only buy movies you want to keep, so its not that much more per movie, or for your entire collection.

truerock 02/26/2009 10:58 PM
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Blu-ray write-once blanks cost $5. DVD write-once blanks cost 20 cents.

Anonymous 02/26/2009 10:58 PM
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Hook me up with your blu-ray connections please... check out best buy's website. $30-$40 for blu-ray new releases. How is that only $5-$10 more?

tayb 02/26/2009 11:34 PM
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Cheaper prices for the consumers or more margin for the producers? I would say a lot more of the latter and a tad of the former.

grieve 02/27/2009 12:16 PM
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jsloan 02/27/2009 12:55 PM
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truerock :
Blu-ray write-once blanks cost $5. DVD write-once blanks cost 20 cents.



didnt know that. hopefully now that the hd media is over blueray prices will drop and dvds will go away.

Ryun 02/27/2009 2:21 AM
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Quote :Those who have seen Blu-ray movies on a 1080p display know what a leap they are over DVD, but until prices fall below a certain point, consumers won’t buy in.


Heh, all my friends think I'm crazy because I can't see an appreciable difference between DVD and Blu-Ray. Maybe it's just the enormous barrier to entry in price -- for a college student -- that's clouding my vision.

falchard 02/27/2009 5:17 AM
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I would like to join a federation of Computer Patent Owners, where anyone who is in the federation is free to make use of patented items within the federation with no liscensing issues. That way I wouldn't have to worry about the several thousand patents Microsoft filed and just pay a small subscription fee.

cletus_slackjawd 02/27/2009 5:29 AM
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when these manufactures of HDTVs make a decent display with integrated Bluray Player at an affordable price, that's when it will go mainstream. I would be interested in a quality 32"LCD w/built-in player in the low US$400s

Tindytim 02/27/2009 7:51 AM
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cletus_slackjawd :
when these manufactures of HDTVs make a decent display with integrated Bluray Player at an affordable price, that's when it will go mainstream. I would be interested in a quality 32"LCD w/built-in player in the low US$400s


Packaging things together is a great way to sell low quality products for more than they're worth.

kiasu81 02/27/2009 9:40 AM
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Does this mean that CD and DVD will be subsidizing Blue ray ?

Tindytim 02/27/2009 11:15 AM
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kiasu81 :
Does this mean that CD and DVD will be subsidizing Blue ray ?


No, not quite. It's simply creating a single governing body so companies don't have to deal with multiple people when creating devices using these technologies.

And considering that the same group of people pioneered these technologies, I don't think they can be subsidized.

And it's Blu-ray, not Blue (you can't copyright colors).

techtre2003 :
OK, a 40% decrease in cost resulting in an 11 cent fee for a Blu-Ray discs. That made the old rate what? 18 cents?Am I missing some big savings somewhere?


Maybe, but you may want to read it over again
Quote :The companies involved estimate that royalty rates for Blu-ray Disc products are expected to be at least 40 percent lower than the current cumulative royalty rates for individual Blu-ray Disc, DVD and CD format licenses

So the savings are even less than that! =D

But then again, the article was written by Marcus Yam, so all the figures are suspect. =P

techtre2003 02/27/2009 3:41 PM
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@Tindytim
Yeah, I caught that after I posted. Either way, I don't see any decrease in Blu-Ray as a direct result of this news.

techtre2003 02/27/2009 3:42 PM
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Sorry, decrease in CONSUMER Blu-Ray products.

Tindytim 02/27/2009 4:08 PM
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techtre2003 :
Sorry, decrease in CONSUMER Blu-Ray products.


I don't either. I was simply pointing out that those insignificant savings, were even more insignificant as far as the consumer is concerned.

If this is truly newsworthy (which I doubt), then I that really brings into question, how large are the profit margins if a such small licensing fees are so significant in comparison to the large prices.

jerreece 02/27/2009 8:53 PM
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techtre2003 :
OK, a 40% decrease in cost resulting in an 11 cent fee for a Blu-Ray discs. That made the old rate what? 18 cents?Am I missing some big savings somewhere?



Keep in mind, that $0.07 difference gets bigger as the product goes through manufacture, wholesale, retail, etc.

If it costs Sony (for instance) $0.11 per disc, they'll charge $0.22 to whomever they sell the disk too, in order to make profit. That wholesale distributor will then sell that same disc for $0.44 to make their profit and cover their own overhead. So the retailer then could be paying $0.88 per disc, and then resell it to you for twice that.

So even small costs at the very beginning of the process, make a difference by the time you're buying it at some retailer. Plus you add in actual materials and manufacturing costs. But generally, that's how mark-up works. Lots of times companies simply double the price on something, and that generally covers their overhead costs plus gives them a little bit of profit.

Hopefully this spells much cheaper Blu-Ray players for all of us though. I'd love to finally get a Blu-Ray player for my HDTV, and a Blu-Ray drive for my PC.

jerreece 02/27/2009 8:56 PM
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Tindytim :
Packaging things together is a great way to sell low quality products for more than they're worth.



Totally agree. I wouldn't buy a TV/DVD combo myself. You usually don't get the same level of quality you'd get from a good TV and good DVD player. Plus, there's to much chance both units day at once.

I recall the days of TV/VCR combo units, and I wouldn't have touched those to save my life. :) Besides the fact that you paid an extra premium for having them together, even though it was usually a poor quality TV and VCR.

cracklint 02/28/2009 6:34 PM
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Man I wish HD DVD had won out. The most expensive format won out;
not by the choice of consumers, but by behind closed door dealings with WB and Sony. At the time WB put the death nail in HD DVD's coffin, Toshiba was already promoting players at $150.

antilycus 03/02/2009 5:19 PM
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um my upconverting 60 dollar set top box is certainly good enough for my 1080p. Im a video nerd like most people, but in all reality, upconverting looks just as good as blu-ray. If you think otherwise, it's all mental. Or you have a 60inch TV

antilycus 03/02/2009 5:26 PM
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we, the consumers, wont see a difference, because companies will see it as a way to make more profit, by charging the same amount. Come on people, just look at how selfish the human race is, why do you think our prices would change at all when they can sell it at the same price and make more profit...?