Sales of DVD player set to jump amid fall in prices

Sales of DVD player set to jump amid fall in prices

Sudibyo M. Wiradji
The Jakarta Post
Jakarta

The sale of DVD players in the Indonesian electronics market
recorded a significant increase over the past several months as
the price of the devices dropped.

The entry of more affordable brands from emerging electronics
producing countries has also contributed to the significant
increase in DVD sales.

The Electronics Marketers Club (EMC) estimates that this
year's sales of DVD players will increase by about 125 percent to
200,000 units from 90,000 units last year.

In addition to already established brands such as Sony,
Philips, Sharp, Panasonic, Samsung, Pioneer, Aiwa and Toshiba,
consumers can now easily find cheaper Chinese-made DVD players.

Chinese-made DVD players can sell for between Rp 400,000
(US$45) and Rp 500,000, while Samsung and Sharp offer their
standard DVD players for between Rp 700,000 and Rp 800,000. Last
year, the cheapest DVD player carried a price tag of above Rp 1
million.

The wide circulation of pirated DVD discs has also contributed
to the significant increase in the sale of the players. Although
the government has passed a copyright law to protect intellectual
property rights, pirated DVD disks are still widely sold. A
pirated DVD disc costs between Rp 10,000 and Rp 15,000, compared
to an original which costs between Rp 300,000 and Rp 400,000.

"Compared to original VCD discs, a pirated DVD disc also has
a much higher quality picture," said one electronics shop
salesperson.

DVD, which stands for Digital Versatile Disc, is similar to a
CD (Compact Disc) but it can hold much more data. Technologically
speaking, a standard DVD holds about seven times more data than a
CD. Commonly, a DVD player produces a much higher quality picture
and resonance compared to VCD.

Unlike a VCD player, a DVD can be used to play both VCD and
DVD discs. These are among the reasons why DVD players are
preferred, even though one needs a TV with three output portals
in order to get clearer pictures.

Players are now racing to take advantage of what they call the
transitional period from VCD to DVD.

To seize market share during this fierce competition, several
distributors of DVD players lowered prices earlier this year. PT
Samsung Electronics Indonesia, the sole agent of Korea-based
Samsung, offers its DVD E series players for Rp 700,000, down
from Rp 1 million.

The company said its newly launched Samsung DVD E series were
selling well because they had good features at a good price.

"Even though our products are targeted at the middle and upper
income groups, we are aware that with the lingering economic
crisis many people remain price sensitive. Therefore, we lowered
our prices to win the hearts of more customers," said PT Samsung
Electronics Indonesia's marketing manager Budi Pramono.

Like PT Samsung Electronics Indonesia, PT Sharp Yasonta
Indonesia and PT LG Electronics Indonesia also saw an increase in
demand for their DVD players after they lowered prices.

PT Sharp Yasonta sells its DVS1 type DVD players for Rp
800,000, down from Rp 1.5 million. "Price, quality and brand are
among the reasons why consumers choose our DVD products," said PT
Sharp Yasonta product manager Rudi Priambodo.

To deal with the competition, the company does not rely on one
type of superior product but provides a variety of products
tailored to the different needs and tastes of customers. "In this
way, we can enjoy good sales," Rudi said.

To attract customers, the company also provides what is called
a "home theater in box" for those wishing to set up a home
theater. A home theater in a box consists of one DVD player, five
speakers with an amplifier and subwoofer.

"With the ready-to-use home theater set, home entertainment
enthusiasts do not have to bother buying speakers and a sound
system anymore," he said, adding that the home theater in a box
package had received a good response from audiophiles and
videophiles.

Like other manufacturers, PT LG Electronics Indonesia, a new
player in the DVD market in Indonesia, has also lowered its
prices to enable it to compete in the market.

The LG DVD-DC7711 series is now sold for Rp 800,000, down from
Rp 900,000. Other LG DVD players like the DK7942 go for between
Rp 1.3 million and Rp 1.4 million.

"Our DVD DK7942 is among the thinnest machines in the world
but it is equipped with karaoke equipment, a scanning program and
Dolby digital recorder," said Hendra of the company.

However, some authorized dealers of foreign DVD brands, such
as Sony, Aiwa and Bang & Olufsen, which generally aim at the
upper market segment, are maintaining their old prices.

A sale executive at PT Sarana Elektrindo Utama, which sells
equipment manufactured by Bang & Olufsen of Denmark, said that
despite the entry of less expensive Chinese brands, the company
saw a 35 percent increase in the sale of Bang & Olufsen DVD
players this year from last year.

The price of a Bang & Olufsen DVD player is about S$2,100 per
unit. "Based on a survey of our targeted customers, they prefer
products that ensure high quality and good after-sale services,
despite the high price," said Arief Hadianto, retail and brand
manager of PT Sarana Elektrindo Utama.

PT Sony Indonesia acknowledges the market for DVD players is
getting tighter, but it is optimistic its market share will not
be affected thanks to the company's good after-sales service.

Prices for Sony DVD players range from Rp 1.1 million to Rp 4
million, depending on the model and series.