Models Monday pose with Samsung Electronics’ fourth-generation Blu-ray player dubbed “BD-P1500,” a Blu-ray disc and a camcorder. / Courtesy of Samsung Electronics |
By Kim Yoo-chul
Staff Reporter
After the HD-DVD format for the next-generation high-definition discs was won by a Blu-ray alliance, Samsung Electronics has revised upward its Blu-ray sales target to 1 trillion won by 2010 from an estimated 400 billion won this year.
``In line with increasing penetration of high-definition (HD) TV sets, the overall Blu-ray market will achieve an average annual growth of 80 percent by 2012 with 51 million sold a year by that time,’’ Jun Dong-soo, executive vice president of Samsung Electronics Digital AV Division, said.
``A conservative estimate for 2008 would be 5 million or three times that of 2007,’’ he said, adding the company is reviewing the possibility of investing new capital into the business.
Samsung just added a fourth-generation Blu-ray player dubbed ``BD-P1500’’ and a second-generation Blu-ray home theater code-named ``HT-BD2F’’ to its Blu-ray portfolio after the company introduced the world’s first player in June 2006.
Like Betamax in the late 1970s, it was Hollywood that eventually decided the destiny of the HD-DVD because the success of a new format largely depends on the content that will be available for it. Therefore, when Warner Brothers sided with the Blu-ray system in January, it was only a matter of time for the other format to disappear.
``Samsung will fully cooperate with other leading manufacturers such as Panasonic, if needed, to expand the new market,’’ he said. The remarks came less than 10 days after Panasonic clarified its intention to possibly team up with Samsung in the Blu-ray business.
On a question over margins, the general manager of Samsung’s Digital Media Business told The Korea Times that he initially sees double-digit margins. However, it is likely to be maintained between 4 and 6 percent after the end of this year, when competition is expected to gain momentum.
``It will be difficult to maintain double-digit margins but we are positive about keeping a profitable level,’’ Jun said.
To promote the latest products, Samsung plans to launch a massive marketing to spur potential consumers by releasing a bundle package.
``The Blu-ray market will grow because this format is a sure way for consumers to enjoy full-HD video and audio quality,’’ the official said.
Data from TSR, a market research firm, shows that the global Blu-ray market will reach 51.2 million by 2012 from 5.9 million in 2008.
But critics say the greater penetration of IPTV is a ``threatening factor’’ for the future of the Blu-ray business as IPTV enables TV viewers to watch HD programs and use high-speed Internet, while Blu-ray products charge extra for HD-level access.
yckim@koreatimes.co.kr
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