2010: The Year Of Blu-Ray

Looks like the makers of Blu-ray players are finally getting the message that consumers are not willing to pay $300 for a media device in a weak economy when its predecessor is still a viable option. With Blu-ray players being seen this holiday season for around $80 and new release titles as low as $17, consumers are more willing to make that switch to the next generation of entertainment from the current DVD format.

The big name companies, including Sony Corp. (NYSE: SNE), Samsung Electronics Co. and Panasonic Co. (NYSE: PC) are all offering Blu-ray players in the $130 range, when just two years ago the same devices carried a $500 price tag.

Shoppers this holiday season have made Blu-ray players a hot ticket items with a 53 percent increase in sales during the week of "Black Friday," according the research company NPD Group Inc.

For 2009, the industry as a whole is expected to ship some 9 million Blu-ray devices, up 54 percent from 2008.

Shoppers are not just diving into the bargain bin for the cheapest Blu-ray player around. New-wave Blu-ray players are getting attention this holiday season as well, as they allow consumers to access media via an Internet connection, including being able to stream movies and TV shows directly from Netflix, Inc. (NASDAQ: NFLX). Blu-ray players of this type can be found for as low as $150.

The strong sales of High-Definition TV sets are driving the sales of Blu-ray players this holiday season. The Blu-ray player allows the consumer to get the most out of their HDTV, allowing movies to be seen in 1,080 lines of resolution, as opposed the 480 lines for DVDs.

Movie studios are now jumping on board with the Blu-ray revolution, offering more titles on the format and also offering movies packaged with both Blu-ray and DVD discs.

Sonic Solutions (Nasdaq: SNIC), which makes solutions for authoring Hollywood's DVD and Blu-ray Disc, could see a benefit on the Blu-Ray shift.

The next step for Blu-ray will be in 3-D content. More information on the future of 3-D is expected to be made public at the Consumer Electronics Show next month.