Best Buy is betting that by being first out out of the gate with 3-D television offerings, it will establish a hold on the category that competitors will not be able to shake once the technology becomes part of mainstream America.
To help get it off to a fast start, Best Buy has signed an exclusive deal with Panasonic to sell that company's first 3-D TV home entertainment system. The system includes a 50-inch plasma 3-D Viera set priced at $2,499.95, a Blu-ray disc player at $399.95 and viewing glasses for $149.95. The complete system went on sale this week at Best Buy's upscale Magnolia Home Theater stores.
"We were again impressed by the technology and do expect it to be a strong traffic driver for Best Buy in the near term," Credit Suisse analyst Gary Balter told MarketWatch.
While it is generally expected that it will be years before large numbers of American households have 3-D sets, many see Best Buy's move as giving it an advantage.
"It's important for Best Buy to maintain a positioning as a destination for the greatest and latest consumer technology," said Ross Rubin at The NPD Group. "It's a statement to establish leadership in the new television technology."
"That's one way they differentiate from Wal-Mart and other competitors. We see a disproportionate interest from younger consumers in 3-D TV," Mr. Rubin told MarketWatch. "This is clearly something Best Buy can pitch to the early adopters."
While Best Buy seeks to get an early start in the market, it is not the only retailer moving into 3-D. Sears and Amazon are selling Samsung 3-D models. Best Buy also sells Samsung 3-D TVs and is looking to add other manufacturer models, as well.
Discussion Questions: Do you agree that it is important
for Best Buy to get out in front as the leader in 3-D televisions for it to
succeed once the technology achieves widespread adoption?
[Editor's Note] Only 17 percent
of respondents to a RetailWire poll
in January thought 3-D televisions would be widespread in American households
in the next five years. Thirty-eight percent said it would take six to 10 years
and 30 percent said it would take longer than a decade. Thirteen percent said
never.