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SI: A Cold Winter For Blu-ray

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Roger Kay, President of Endpoint Technologies Associates, says Blu-ray sales will experience a dramatic drop during the holiday season and beyond, delaying the adoption process and putting the serious hurt on sales. Instead of dropping big bucks on Blu-ray players, consumers will instead turn to the technologies they have available, such as Netflix — which now charges extra for Blu-ray rentals — and streaming video. “If you can get movies over the wire on demand and have an entire library at your disposal on the screen a la Netflix, that’s the way you’re going to go,” Kay told The San Francisco Chronicle.

This bad omen comes after Steve Jobs called Blu-ray a “bag of hurt” and said Apple would delay integrating the technology into its products until “Blu-ray takes off in the marketplace.” And Blu-ray definitely isn’t taking off yet — its market share has dropped, and Sony, Blu-ray’s leading backer, hedged its bets on end-of-year sales, a gamble that may fall flat given the current economic climate.

Rick Clancy, Senior Vice President of Corporate Communications at Sony, notes: “For much of the year, consumers have continued to shop and continue to buy CE products at a pace outdistancing the economy as a whole and other segments like housing and automobiles.

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